HPKV Consulting Unit LLB



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5 Simple Steps


To Nidhi Company Registration

Documents For Nidhi Company

Registration

Self-attested copy of PAN Card Self-attested copy of Driver’s License/Voter ID/Aadhaar Card/Passport
Self-attested cop of Bank Statement/Telephone Bill/Mobile Bill/Electricity Bill Passport Size Photograph
Specimen Signature Certificate Valid Identity and Address Proof of Shareholders and Directors

Benefits of Nidhi Company Registration

Cheaper Borrow Rates

Nidhi Company members get access to minimum interest rates for borrowing money. These rates are cheaper than bank set standards.

Savings Encouraged

As a part of mutually beneficial firm, Nidhi Company encourages the members to securely save money and provide financial aid to one another.

Minimal Complications

Nidhi Company caters a well segregated procedure to eliminate any complications from lending or borrowing money to the known persons.

Better Credibility

Nidhi Company flaunts better credibility as compared to state government monitored Mutual Benefit Organizations.

Uninterrupted Existance

Nidhi Company comes with a perpetual succession which is continued with uninterrupted existence till the day it is dissolved in a legal procedure.

Easy Management:

With a simple filing of forms at the Registrar of Companies, any Nidhi Company can easily opt to change its Board of Management.


About Nidhi Company


Nidhi Company is a non-banking type finance firm that is solely governed by Indian Central Government. It was recognized under the Section 406 of Companies Act, 2013. The prime business of these companies is the facilitation of lending and borrowing money between the company core members. Basic examples of Nidhi Company include options such as Mutual Benefit Funds, Permanent Funds, Benefit Funds and Mutual Benefit Company. The central idea behind creation of the Nidhi Company is receiving deposits from the member or lending them a certain amount as required. Any act of borrowing or lending money by Nidhi Company should always comply with the rules as stated under Chapter XXIV of Company Rules, 2014.

Frequently Asked Questions
I would like to start a Nidhi Company. How can I begin with and how long will it take to register?

You need to appoint a minimum of three directors and have seven shareholders. So, a total of 10 individuals are needed to form a Nidhi. You need to register the company as a limited company under Companies Act, 2013. Nidhi Companies take almost a month or even longer to register.

My Nidhi Company is doing well. Can I expand its operations to other places?

Yes, you can expand operations.A minimum of three branches can be opened in a particular district. In case you want to expand outside the district or want to open more than three branches, intimation needs to be issued 30 days prior to opening to the Registrar of Companies.

My Nidhi Company has finished its one year tenure, but could not acquire the required number of members. Will I have to dissolve it?

The conditions laid down by the Act says that a Nidhi company should acquire a minimum of 200 members within one year. However, in case you have not been able to acquire the required numbers, you can apply for an extension with the authorities.

Can any person other than the members deposit funds or transfer it to the general fund of the Nidhi Company?

No, only the members are allowed to deposit, borrow or lend funds.

Who can become a member of a Nidhi Company?

Any person can deposit, lend or borrow money through the provisions provided by Companies Act, 2013. They can all become members of the Nidhi provided they are not a corporation or a company.

How much deposit can a Nidhi accept from its members/member?

A Nidhi can accept deposits not exceeding 20 times of its net owned assets as mentioned in the last audited statements.

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