ALL YOU NEED TO KNOW ABOUT NIDHI COMPANY IN INDIA

ByJyoti Singh

There is no doubt that there has been an active growth in the foundation of various companies during the past few years in India, while for some companies there might have been issues regarding the registration process but for some it was a seamless procedure free of worries and stress. Among such companies, the concept of Nidhi Company and a question of How to Register a Nidhi Company remains a new doubt in everyone’s mind; this article will thus focus on the concept and extract the answers related to How to Register a Nidhi Company in India.

 

WHAT IS A NIDHI COMPANY?

There are many companies in India which operates on a big scale and as a matter of fact, they require a certificate of registration by the RBI thereby making it a hectic and stress causing element in the procedure, But then Ministry of Corporate Affairs came with the concept of “Nidhi Company” and signified it in the company’s act, 2013 regarding the question of How to Register a Nidhi Company in India and also mentioning various rules and procedures in the act.

 

As defined  in   section 406(1) of the Companies Act, 2013, “Nidhi” means a “company which has been incorporated as a Nidhi with the object of cultivating the habit of thrift and savings amongst its members, receiving deposits from, and lending to, its members only, for their mutual benefit”.

HOW TO REGISTER A NIDHI COMPANY?

Finally this segment can answer your possible questions related to How to Register a Nidhi Company in India and the problems related to Nidhi Company Registration in India that usually people face. To register a Nidhi Company in India, following documents are required-

·         Copy of PAN Card of the shareholders as well the Directors

·         Residential Proof of the shareholders and directors like Bank statement/Electricity Bill

·         Photographs of shareholder and directors

·         Identification Documents such as the Aadhar card/Voter ID

·         Electricity Bill of Registered office adderrss

·         Rent agreement or lease agreement of the registered office

·         If the office is owned, then ownership information or the registered office address must be provided

·         NOC if required

·         Business Description

 

When the documents are all sorted, then finally a person has to follow 6 easy steps to think of a Nidhi Company Registration in India, the steps are as follows-

 

1.   The very first step is to get all the documents of applicants and verification thereof, On the basis of documents received, digital signature certificate of the applicants have to apply.

2.   Once First step is completed, we need to prepare AOA, MOA and other documents of company.

3.   The third step while applying for a Nidhi Company Registration in India comprises of giving the Incorporation application to Ministry of Corporate Affairs which after scrutinizing various aspects approves the registration of the company.

4.   Once the 3rd steps are completed successfully, Ministry of Corporate Affairs will scrutinize the application and ask for further information or modification in application, if think fit, otherwise it will approve the application.

5.   After the approval of application, a communication through mail shall be sent to the applicant by providing COI, PAN, TAN, PF Registration, ESIC Registration, DIN, etc. of company.

6.   Now MCA is also providing Company Current Account opening assistance also. You do not need to open companies current account seperatly.

 

POSSIBLE PROBLEMS THAT MAY OCCUR

The possible problems are witnessed in the form of restrictions imposed in Rule 6 of Nidhi Rules, 2014 while applying for a Nidhi Company Registration in India consists of-

1. A Nidhi Company is not allowed to issue preference shares or debentures.

2. A Nidhi Company is not allowed to open a current account of any member in the company.

3. A Nidhi Company is not allowed to issue any kind of advertisement.

4. A Nidhi Company is also not allowed to lend money to any non-member of the company.

5. A Nidhi Company cannot acquire any other company.

 

CONCLUSION

Nidhi company is a type of Financial Company, if you want to start a small financial bank, Nidhi registration is best for you. It required no RBI approvals in terms of registration and Otherwise. It is governed by Nidhi Rules prescribed under Companies Act. And a small group of person persons can be member of this company. We are also expert in other services such as GST Registration, GST Returns, Income Tax Filing and other online CA services. In a world where everyone is in rush, People forget to familiarize themselves with respect to know the GST return filing procedure. LegalPillers has been an asset for many individuals and companies because of their extraordinary services in the same; they’ve never failed to make people understand the importance to various kind of registrations and licenses. To know the GST return filing procedure please connect us through online CA services portal. LegalPillers is a team of well qualified CS, CA and Advocates which helps the companies and individuals with their multiple requirements.