• +91-8700033289, 9560132098, Whatsapp Number : 7982679438, mail@taxhint.in

Arrange call from experts

Nidhi Company

Get Started

Nidhi Company

What is a Nidhi Company?

 A nidhi company online 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.

Documents required for registration of Nidhi Company

  • 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.

Advantage of Private Limited Company
  • 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

Process

  •  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

Applicability of Nidhi Company:-

The Centre made ‘Nidhi Rules, 2014’ for purpose of the carrying out objectives of ‘Nidhi’ companies. These rules shall be applicable are:

1. A Nidhi/Mutual Benefits registered under Section 620A(1)of the Companies Act, 1956

2. Every company functioning on lines of the Nidhi company Registration online or mutual benefit society but either not applied and is awaiting notification to be a Nidhi Company Certificate Registration or Mutual Benefit Society under Section 620A(1)of the Companies Act, 1956 3. Every company incorporated as a Nidhi with the respect to provisions of Section 406 of Companies Act, 2013.

Choose for Nidhi Company

  • (a) No External Involvement in Management
  • (b) Helpful for Lower and Middle Classes
  • (c) Low Rates of Interest
  • (d) Secured Investments
  • (e) Minimum Documentation and Formalities

Frequently asked questions :-

Q1. What is Nidhi Company Registration ?
Ans:- Nidhi Limited Company online is Basically defined under (Section 406) of Companies Act, 2013 & Companies Nidhi Companies Rules, 2014. A Nidhi company certificate registration belongs to class of non-banking finance sector firms. The Nidhi Companies is governed or ruled by Central Government.RBI empowered to the give directions regarding matters related to acceptance of the deposits. The rudimentary business of Nidhi Company registration is to empower lending money and encouraging savings between to the members of company.
Q2.What are Main Objectives of Nidhi company Registration ?
Ans:- • Nurturing habit of the saving a money. • Lending money to and receiving deposits from the members only, for their common benefit.
Q3 How the Nidhi Company utilizes Funds procured by it ?
Ans:- The Nidhi Company uses of funds in the lending shareholders as per Nidhi Rules. It lends such money in form of small loan for the business and finance.  
Q4 What are the Restrictions on Nidhi Company?
Ans:-Nidhi Companies not allowed do the following business:- 1. They are not allowed to the start business of chit funds, Hire Purchase Finance, Insurance, Leasing Finance & acquisition of the shares issued by companies. 2. Nidhi Company Registration online can’t issue securities such as preference shares and debentures etc. 3. and prohibited from the opening any current account with members. 4. It is not allowed to the acquire other company.
Q5. Can another company be shareholder in Nidhi Company?
Ans:- Yes, another can be a shareholder in Nidhi company.  
Q6 Are the Deposits with the Nidhi Company safe & secured?
Ans:- Yes, the Deposits with such as companies are safe & secure because Reserve Bank of India or RBI and Ministry of Corporate Affairs or MCA has framed rules & regulations to the ensure safety and security of Deposits. And Nidhi Company Registration Cost compulsorily abide by rules of Central Government.  
Q7. Can a director in a Nidhi company be salaried person?
Ans:- Yes, a salaried person can become director in the Nidhi Company. There are no legal hassles in this but one may have go through their employment agreement if the contains any restrictions.
 
Pay Now