Menu
Menu
Menu
Save Money and Live Frugally with this excellent option
Now register for Nidhi Company online with the assistance of LAW SUVIDHA and get quality services at affordable prices.
Nidhi Company is an NBFC (non-banking finance company) established under Section 406 of the Companies Act of 2013. The primary business of such a company is to ease lending money amongst the organisation’s core members. Members (or shareholders) are encouraged to save money and invest it within the organisation in this manner. In turn, the firm used the deposits for loans and advances to its members (or shareholders), as well as for purchases of government bonds, stocks, and other securities. The Ministry of Corporate Affairs regulates it, while the RBI oversees all its financial transactions. Businesses interested in creating a mutual benefit fund or a mutual benefit corporation will find this useful.
Get an edge over your rivals by working with a highly qualified team of specialists at Law Suvidha. Our expert services are top-quality, and we guarantee that you will be completely satisfied with our services. We help you with every stage of Nidhi company registration so you can focus on your business.
Nidhi Company Registration Procedure
As a Nidhi Company, it is simpler to start a business in the NBFC sector. To begin, a Nidhi company must have a paid-up equity share capital of 5 lakhs, whereas an NBFC must have a net value of 2 crores. As a result, establishing a Nidhi Company is simple.
Three of the requisite seven members of a Nidhi Company are elected as directors. Because of the modest scale of such businesses, as well. Their administration is rather uncomplicated.
The members may access loans at lower rates as compared to the market and at the same time concern themselves with less paperwork. Members can also obtain better returns on their savings.
Because it is a legal entity that can only be dissolved, one can continue to do business even after the death/retirement/departure of its members.
Because these societies are based on trust, the likelihood of members defaulting is quite low. Furthermore, there is collateral tied to the borrowed money, therefore the loans are secured.
Fill Get in touch form
Fill the contact form
Select your service
We will contact you
Fill Get in touch form
Fill the contact form
Select your service
We will contact you
The following are the prerequisites for incorporating a Nidhi Company:
A Nidhi firm cannot engage in the following activities:
Nidhi companies are required to follow the Nidhi Rules, 2014. It registered them as a Public Limited Company and is thus subject to the regulations of the Nidhi Rules, 2014 and the Companies Act, 2013.
Yes, Nidhi companies can legally make loans to their directors or families while they are members. However, such transactions will be documented in the footnote section of the annual accounts.
Since the Nidhi company is not required to obtain the RBI’s approval, it is simple to establish. It is incorporated as a public corporation and must include the words “Nidhi Limited” at the end of its name.
The ultimate intent of such organisations is to instil the habit of thrift and savings among their members. According to the Company Act of 2013, all transactions, including lending and borrowing, must take place in serving members alone.
