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Nidhi Company

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Nidhi Company

Nidhi Company

A nidhi company is one that belongs to non-banking Indian finance sector and is a recognized under the section 406 of the Companies Act, 2013. Their core business is a borrowing and lending money between the members. They are also known as the Benefit Funds, Mutual Benefit Funds, Permanent Fund, and Mutual Benefit Company. They are regulated by MCA, and recognition of the fact that these companies deal with their shareholder members only. Nidhi means a company which has been incorporated with the object of developing habit of the thrift and reserve funds amongst its members and also receiving deposits and lending to the members only for the mutual benefit.

How Get helps You

  • Section 406 of companies act 2013 and companies (nidhi company ) rules , 2014 governs. the law and procedure for nidhi company.
  • “Nidhi “ , means a company which has incorporated as the nidhi with object of the cultivating habit of thrift & saving amongst its members.
  • Different names such as nidhi, permanent fund ,benefit funds, mutual benefit funds, mutual benefit company.
  • Borrowing form member and leading to members only.
  • Only individual can be it’s members.
  • Nidhi company should be public company with minimum 7 member and its has minimum 3 directors (after incorporation within 1 year minimum numbers should be 200)
  • Last word must contain nidhi limited.
  • Minimum paid up entity share capital of five lakh rupees at the time of incorporation which later have to be increased.

Process involved in registering a Nidhi Limited Company

  • 1. Getting sorted with Digital signatures DSC and DIN 1-2 working days
  • 2. Applying for the name approval 2-3 working days
  • 3. Filling for the incorporation 3-5 working days

Documents Required for Nidhi Company Registration?

  • Identity proof of shareholders and Directors –Passport copy of foreign nationals and PAN card for Indians.
  • Address proof of the shareholders and Directors – bank statements, electricity bills that are less than 2 months old.
  • Aadhar Card of shareholders and Directors.
  • Proof of registered office in the India – recent copy of property tax receipt, water bill or electricity bill. Rent agreement or an ownership all document with no objection certificate from landlord.
  • Passport size photographs of the directors.
  • NOC From owner of the property.

Advantages of Nidhi Company Registration

No Minimum Share Capital Requirement Easy Transfer of the Ownership Tax Benefits Ease of Incorporation No Stamp Duty Limited Liability a separate legal entity Clear Objectives for easy donations & loans Easy to the Manage Privileges & Exemptions under Companies Act, 2013 Lower rates of interest Relaxation in the Compliances Channelizing the funds
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