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N.B.F.C Registration in
We provide expert consultancy for company registration, GST, ITR filing, and FSSAI certifications, ensuring seamless legal compliance.
A Nidhi Company is a unique type of Non-Banking Financial Company (NBFC) in India, formed with the primary goal of cultivating the habit of savings among its members. These companies operate on mutual benefit principles, facilitating borrowing and lending solely among members. Nidhi Companies are relatively easy to set up since they do not require a license from the Reserve Bank of India (RBI) and are registered as public companies with "Nidhi Limited" in their name.
The main objective of a Nidhi company is to promote savings and thrift among its members. It functions by accepting deposits and providing loans exclusively to its members, ensuring mutual benefit.
Nidhi companies are exclusively member-based organizations. They do not accept deposits or lend money to non-members, maintaining a closed financial ecosystem.
Unlike other NBFCs, Nidhi companies do not participate in external financial activities such as leasing, hire-purchase, insurance, or chit fund businesses.
To incorporate a Nidhi company, the minimum capital requirement is INR 10 lakh, making it accessible for small groups aiming to foster mutual financial growth.
Nidhi Companies advance the interests of their members by taking deposits and lending money. They operate on principles of mutual trust and group financial support.
Under the Companies Act of 2013, Nidhi Companies are regulated by the Ministry of Corporate Affairs (MCA).
Unlike banks and NBFCs, Nidhi Companies have limited scope. They cannot engage in insurance, leasing, or hire-purchase financing. They are restricted to lending and borrowing only among their members.
Members of a Nidhi Company usually share a common interest, such as living in the same area or belonging to the same community. They participate in the company's governance and contribute to its capital.
Nidhi Companies typically have a simple corporate structure, with members electing a board of directors to manage the organization. This ensures democratic control and member accountability.
Nidhi Companies play a crucial role in promoting financial inclusion in rural and semi-urban areas where traditional banking services may be scarce.
The directors must obtain a Digital Signature Certificate (DSC) and apply for a Director's Identification Number (DIN). DSC is required for all e-filing procedures.
Clearly state the purpose of the Nidhi Company in the Memorandum of Association (MoA) and Articles of Association (AoA), then submit them to the Registrar of Companies (ROC).
Submit three name suggestions to the MCA. One unique name will be approved, valid for 20 days.
After name approval, file an application for registration with the MoA and AoA attached.
The Certificate of Incorporation, along with a unique Company Identification Number (CIN), is issued within 15-20 days.
Apply for PAN and TAN, open a bank account, and submit the necessary documents like MoA, AoA, and Certificate of Incorporation.
Nidhi Company registration provides several advantages for individuals and businesses looking to operate a non-banking financial company (NBFC) without RBI regulations. Below are the key benefits:
Simple Registration Process: Nidhi Companies are registered as Public Limited Companies under the Companies Act, 2013.
No RBI Approval Required: Unlike other NBFCs, a Nidhi Company does not require RBI approval to operate.
Minimum capital required is ₹10 lakh: Making it an affordable option compared to other financial institutions.
Can be started with just 7 members: Making it easier for small businesses and groups.
Promotes Saving Habits: Encouraging small deposits and thrift among members.
Acts as a mutual benefit society: Helping people with easy loans at low-interest rates.
Fewer regulatory compliances: Nidhi Companies are subject to fewer regulations compared to NBFCs.
No stringent RBI regulations: No stringent RBI guidelines are required for their operations.
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