BENEFITS OF STARTING OF A NIDHI COMPANY REGISTRATION ONLINE IN INDIA

As compared to other types of finance related business, starting a Nidhi Company or registration is very simple and the level of the complexities is less.

Saving Habits

A Nithi licence is a mutual understanding society where members can borrow or lend money and take a financial help from them.  This type of company encourages the members and all shareholders to save money and encourage a thrifty lifestyle.

Cheaper to Borrow Money

Different people need different kind of financial help and they require immediate funds at less interest rate.  As a member, one can borrow money at least interest rate, lesser the lending from bank loans.

Fewer Complications

Informal setting or banks have fixed and complicated lending procedures, but here it is much easier and simpler to borrow and lend.

Micro Banking

Nidhi mainly focuses on far off locations where there is lesser help from banks or other financial institutions.  Here the rural and remote people are the beneficiaries.

At Nidhi, 200 members should be net from time span of one year from commencement.

·         The Nidhi company should have Rs. 5 lakhs as equity share capital.  The amount must be paid up and net owned funds must increase to 10 lakhs with the time span of one year from registration.

·         10% of outstanding deposits must have unencumbered term deposits.

·         10% of the total deposits should be in a fixed deposit account of any national bank.

·         The prescribed net owned funds to the deposits ratio must be 1: 20.

TEN THINGS THAT NIDHI COMPANIES CANNOT DO AS A NON-BANKING FINANCIAL COMPANY (NBFC)

·         They cannot advertise with the expectation of gaining any deposits cant solicit.

·         They cannot use druthers, debentures or share capital to bring funds for themselves.

·         They can fix monthly salary and employ people, but cannot provide any brokerage or incentive for granting loans or rotating deposits.

·         Until three years of continuous profits, they cannot open a branch or second office as a subsidiary branch.

·         At Nidhi, they cannot accept deposits from non-members of the company or from individuals who are not members of the company.

·         Current account cannot be opened by members under Nidhi scheme.

·         Hire purchase finance.

·         Acquisition or insurance of securities supplied by any corporate engaging as an NBFC in the business of loans or advances.

·         Acquisition of stocks, bonds, shares, securities, debentures and so on issued by any local authority or Govt marketable securities.

NDH 1

Time limit is 90 days.  At the closure of financial year, they have to submit the list of Nidhi Company members.

NDH 2

If they cannot add 200 members in its financial year, they can ask for permission for extension from MCA.

NDH 3

NDH 3 form should be filed for half yearly returns by the Nidhi Company.

Annual Returns with ROC

In MGT-7 form it is compulsory that a Nidhi Company should file annual returns with the Ministry Of Corporate Affairs.

Profit, Loss and Balance Sheet

In Form AOC-4, a Nidhi Company has to submit financial statements and other related documents.

Income Tax Returns

Nidhi Company must file annual returns in the following financial year by September 30th, like the rest of the companies.

PROCEDURE FOR ONLINE NIDHI COMPANY REGISTRATION IN INDIA

It is an easy process to fill up the forms for Nidhi Company registration.  Nevertheless, it is an idea to get a professional advice, so that everything comes out well.

Step 1:

Applying for DSC and DIN for directors of the company

Application for DSC and DIN for the directors of the company

Step 2:

Choosing the unique name and getting the name approval.

Name approval and its uniqueness should be taken into account.

Step 3:

Drafting and filing the MoA&AoA to the Registrar of Companies (ROC) with the subscription statement. These must contain the main objective of integrating or forming a Nidhi Company as a charity.

The main principle of integrity or forming a Nidhi Company as a charity should be drafted and filed as a MOA and AOA to the registrar of the companies.

OME are complex to fill them within the time.

THE STEPWISE PROCEDURE FOR INCORPORATION OF NIDHI IS AS FOLLOWS:

·         CIN certificate of incorporation, which usually takes 15 to 25 days.  It is the identification number of the Nidhi Company.

·         Seven working days to receive after applying for PAN and TAN for the company.

·         Nidhi should approach a bank for opening an account by submitting the MOA, AOA and Certificate of Incorporation and PAN of the company.