How To Start Nidhi Limited Company for Startup Entrepreneur
The number of entrepreneurs in India is increasing on a large scale. Thousands of individuals are looking forward to starting a business of their own. So, what are you up to are you also in the same queue? If so here we have a great business option for you.
Commencing a Nidhi company in India is one of the best options for starting a business. Therefore in this blog, we will be providing you with sufficient information on Nidhi company registration to make things simple for you.
While you are planning to get access to the financial business, it is quite common that you will have a question about what is a Nidhi company and how to register nidhi company? Keeping entrepreneurs in mind we have mentioned brief details on a Nidhi limited company.
A Nidhi company falls under the Companies Act 2013. The main motive of a Nidhi Limited company s to borrow and lend money to its members to practice saving among its members.
Registering a Nidhi Limited company
Are you eager to know the procedure of nidhi company registration? Here is some basic information on this topic and here are the following steps for registering it.
● DSC and DIN are required for all the shareholders, directors, and members of the company.
● Arrangement of the documents that are mentioned by the law for Nidhi company registration.
● Name approval application by filing an application through INC-1 to the MCA
● Preparing the memorandum of association (MOA) and articles of association (AOA) and other documents is necessary.
● After you are done with the previous steps, it is now time to apply for the registration.
● Once the documents and provided information are inspected and approved, you will be getting the registration certificate.
TAN and PAN for the company can be applied
Minimum requirements for Nidhi company registration
While registering a Nidhi Company there are some documents that are mandatory to be presented. Therefore to complete the process without any sorts of issues and they are as follows,
● A company that is registered under this act is a public company.
● The minimum paid-up equity capital of the company should be 5,00,000 while registering the company and after that Rs.10 lakhs is required.
● Preference shares can not be issued by a Nidhi company.
● A minimum of 3 directors and 7 shareholders is required while incorporation and 200 members within a year of Nidhi company registration are required.
Documents required for Nidhi company registration
The Documents required for Nidhi company registration are as follows,
● PAN of all the directors of the company is a must.
● Identity proofs of shareholders and directors like Voter ID/ Aadhar Card/ passport/ driving licence of all the directors and members.
● Passport size photographs of all the directors.
● If the property for the business is owned, there is a need for an electricity bill/ telephone bill and documents proving the ownership.
● If the property is rented there is a need for an electricity bill+ rent agreement NOC.
Benefits that you get by registering a Nidhi limited company
While you made up your mind about registering a Nidhi Limited company, you must have been thinking about the benefits that you get by registering a Nidhi Limited company.
Therefore here are some of the perks that you get by registering a Nidhi company,
● A Nidhi company is easy to form
a. Unlike other businesses, incorporating a Nidhi company is a lot easier.
b. This business does not require a licence or authorization from the RBI (Reserve Bank of India) as it follows the Nidhi Rules 2014.
c. Only 7 members are required to form a Nidhi Limited Company. Out of 7 members, 3 members are designated as directors.
d. Ministry of Corporate Affairs governs a Nidhi company.
● Minimum capital is needed
Earlier the minimum required capital for registering a Nidhi company was Rs 10lakhs. Still, later the ministry of corporate affairs expanded the limit to 5lakhs during registered and laters this capital needs to grow to at least 10lakhs by the end of a financial year.
● Provide micro banking facilities
A Nidhi company is capable of serving micro-financing banking facilities to its clients. Apart from these, there are various other lucrative benefits that you get by registering a Nidhi company for your business.
This was the basic information that you need to know before getting into a financial business. We understand that there are lots of other doubts like what is cost of nidhi finance company, what are the limitations of a Nidhi company. To clear all your doubts regarding a Nidhi company, have a glance at our website. We understand that incorporating a Nidhi company is not as easy as it seems. Therefore we provide the best assistance in forming a Nidhi company. To get the best aid in this field contact us through the contact details mentioned on our website.
