Planning to start a finance business the Nidhi Company is the best suitable business structure for an early-stage startup. The young entrepreneurs who want to enter the finance business, we suggest registering Nidhi Company. Nidhi Company is also a type of NBFC and it is registered under the Companies Act. 2013 Nidhi Company is exempted from RBI Regulation. You will only need to select and finalize the directors and shareholders. You can register Nidhi Company with 7 members and Minimum paid-up capital of Rs. 5 lacs. The Nidhi Company is a type of a Public limited company hence a minimum of 3 directors required for registration with MCA.
Members and directors can be the same person in the Nidhi Company.
Nidhi company registration is completely an online process and it will be approved by the Ministry of Corporate affairs in 15-20 working days.
Nidhi Company works as a small finance bank in a district or state level subject to the fulfillment of the necessary terms and conditions lay down by the regulatory authority. The principal objectives of Nidhi Company are to accept deposits from its members and give loans to its members. As per Nidhi rule 2014, You can only open one branch one district and after 3 years of profitable business, further, you can open another branch in your state. In case you wish to cover another district in the 1st year of operation then you can register another Nidhi company.
The Nidhi Company accept deposits include Saving Deposits, Recurring Deposits and Fixed Deposits and also Nidhi company can only give secured loan to its members other than an Auto loan.
Nidhi Company Registration Process
As you know the Nidhi Limited Company registration process is completely online. While setting up the Nidhi company, the applicant company is required to be registered with the Ministry of Corporate Affairs. Our team will handle end to end registration and compliance process.
Digital Signatures (DSCs): Digital signature is a type of USB device which will be created by our team after OTP and identity verification of all your members and Directors.
Name Application: Once the name is finalized, the application shall be made in Form SPICE-Part A. it provides the option to apply for two names. The name must contain the word “Nidhi” or “Mutual Benefit” in it.
Drafting of MOA and AOA: The MOA is the constitution of the Company and defines various mandatory clauses of the finance business Proposed by the Nidhi company and AOA governs the internal rules and regulations for the functioning of the Nidhi Company.
SPICE-Part B: This is the form for incorporation and shall contain all the details about the directors, shareholders, registered office and proposed objects of the Company, as enumerated under the Nidhi Rules, 2014
AGILE-Pro: This is the newest form in the process of Nidhi Company Registration and contains the details about GST, ESIC, EPF registration, Professional tax Registration (Only for Maharashtra) and also you can select a bank for about Opening of Bank Account.
SPICE-9: This Form is a declaration by the Directors and Shareholders regarding their non-conviction from any court of law. As well as the solemn about the correctness of all the information and documents provided by them during the process of registration.
Grant of Certificate of Incorporation: The Ministry, after being satisfied, that the documents and details submitted in the application are correct and gives a true and fair view of the intentions of the applicant, shall grant the Certificate of Incorporation (COI) along with PAN and TAN.
Read more at: https://www.caclubindia.com/articles/you-should-know-all-about-nidhi-company-registration-42010.asp
This article has been contribute by SwaritAdvisors who is a legal & financial services provider with free expert’s advisory such as GST Registration, NBFC Registration, Private Limited Company Registration, etc.
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