Nidhi company registration

Nidhi is a company hey that has the main objective of cultivating the habit of thrift amongst its members and also developing a sense of savings amongst them. It also receives deposits from and lends its members only by the way of mutual benefit in compliance with the Companies Rules and Companies Act in India. To form a Nidhi company you have to do a Nidhi company registration online. Nidhi basically means treasure however in the financial sector it is a term for banks. Some features of Nidhi Company are : The companies which do Nidhi business have many different names such as Mutual Benefits funds, permanent funds and mutual benefit company as well.The dealings are limited to its members and the source of funds is also from the members hence they are found in mutual benefit societies. These are single office mostly and are found locally and are especially famous in South India. Reserve Bank of India has the right to issue directions to Nidhi companies however it is not bound by any core provisions of the RBI Act as such. You can do the Nidhi company registration online as well. Nidhi company is a company registered under the Central government and is a nonbanking finance company that deals in lending and borrowing of money from shareholders and its members. Nidhi companies are subject to restrictions such as : A Nidhi company cannot take up the business of hire or purchase or chit fund. It can also not take up the cause of finance, securities or insurance acquisition. It cannot issue preference debentures or shares. It cannot open current account of the company memberIts is restricted in terms of acceptance, deposit, lending of money to any individuals other than its own members.It can not publish an advertisement It is not allowed to enter into any kind of agreement or pay any brokers or implore deposits. It cannot promise any of the assets of its members as security. These are the following requirements for a Nidhi company : A Nidhi company shall be a public companyThe minimum paid up capital shall be 5 lakhs. There shall be no issuance of preferential shares.If the company before formation had preferential shares then those will be redeemed. The main objective is to promote savings and to increase mutual benefits by sharing.The words Nidhi limited shall be present at the end of its name. For Nidhi company registration online there should be a minimum of 7 out of which 3 need to be directors of the company. A Nidhi company cannot issue preferential shares and need a minimum of 5 lac rupees in order to start a Nidhi Company. Documents required for registration are The documents that are required for Nidhi company registration online are : A proof of the place of business such as some ownership documents like lease agreement or rent agreement. A No Objection certification that is given by the landlord Proofs of identity such as Voter Id Cards The members need to give their address proofs The photos of the members are also required. Copies of the Pan Card of the members.Digital signature of the the members The directors need to give their director identification number The memorandum of association of the companies needs to be given.The Articles of Association of the company also has to be given. For Nidhi company registration online only two forms are required to be filled that is all. These are the conditions to be fulfilled for Nidhi status to be given After Nidhi company registration online the company needs to within one year The company should have at-least 200 members within one year from the day it commences Their net owned funds should not be less than 10 lakhs of rupees.The term deposits unencumbered should be 10% or higher of the outstanding deposits. The ratio should be maximum 1:20 when it comes to net owned funds. Process of registration of Nidhi company In order to do Nidhi company registration online these are the steps you need to follow : Get Digital Signature Certificate as well as the Director Identification Number of all the directors of the company through a simple form in a document format. Approve name of company via a form but to make sure that existing companies do not hold the same and thus reserving it under MCAFinally registration of the company through a form and the necessary documents which is done by the registrar. The Nidhi company registration online can be done easily. This company has many benefits which includes easy management and a good credibility. It also comes with a lower rate of interest and the existence is without any interruptions. There is limited liability and a person is liable to the extent of his investment.

Nidhi company registration

Steps to ensure easy Nidhi company registration online