Nidhi Company Registration Online in Chennai, India

Nidhi Company Registration

Are you preparing to urge able to commence a finance business without an excessive amount of capital investing? If your answer is yes, then Nidhi company is the best choice. Nidhi Company is one quite Non-Banking Financial Company (NBFC) which is a superb choice of company for people looking to save lots of money and lead a careful business and life. So, it is always better to undergo Nidhi Company Registration Online in Chennai, India.

What is a Nidhi Company?

Nidhi Company Registration in Chennai is an easy type as compared to NBFCs, which require an RBI license to start. A Nidhi Company are often started with an initial capital of Rs.5 lakh and need a minimum of seven people to start out with. Nidhi Company Registration in Chennai also requires three directors initially. Every promoter or director shall need a replica of the PAN card, ID proof, and address proof to use for Nidhi Company in India. It takes around 15 to twenty days to urge Nidhi Company Registration in Chennai

Benefits of Starting a Nidhi Company

There are more advantages to forming a Nidhi Company. Some are listed below:

Liability is Limited: The liability of Directors and shareholders of the Nidhi Company is limited. In case the corporate suffers from any loss and faces, financial distress within the course of its commercial activity , the private assets of any of the administrators or members are not in danger of being seized by banks, creditors, and government.

Fewer Regulations: “Nidhi” companies are governed under the Nidhi Rules, 2014. The Central Government is that the regulating authority, which controls its activities and operations. Guidelines imposed by the RBI on “Nidhis” are very few.

Better Credibility: “Nidhi” companies enjoy better credibility as against the other member-based organizations like Trusts, Cooperative Societies, or NGOs.

Better Option for Savings: the most purpose of a Nidhi Company’s incorporation is to encourage the habit of saving among the members of the corporate . This is how it achieves the other goal of its registration of being mutually beneficial. The Nidhi Companies are to “lend and borrow money” to and from its shareholders/members only.

Easy Access of Public Funds: The loans from the Nidhi Company come at a less expensive rate than loans from banks and other NBFCs, for its shareholders. And the process of obtaining the loan and customized services are much more convenient and quicker.

Ease of Fund: Nidhi Company is that the safest and therefore the cheapest way of inviting deposits from the overall public. You just got to take them as registered members.

Micro Banking: Nidhis provide banking services to the remote and rural public of India which still is predicated in far-off locations and is, hence, barren of accessing finance from national banks and NBFCs.

It acts as a “Better Credit Co-operative Society”: Nidhi Company is a close substitute for credit co-operative society. And, therefore, more preferred by the small financer. Once a Nidhi company has been registered, the members can avail themselves of all the benefits of a credit co-operative society.

Simple Processing: Borrowing and lending to known persons, belonging to an equivalent group, is far simpler than handling banks, where the procedure is impersonal and glued .

Easy Registration Process: The process to register a “Nidhi Company” with Chennai Filings is quite simple and transparent. You don’t got to take any license from RBI. You just need to incorporate your company as a public limited one with the MCA.

Single Regulatory Body: After the Amendment in Companies act 2013, Nidhi Companies are overseen by Nidhi Company Rules.

Low Capital Requirement: Ministry of Corporate Affairs (MCA) commands the minimum capital requirement of Rs.5 lakhs for the incorporation of a “Nidhi”. And, within 1-year, the capital has to be raised to at least Rs.10 lakhs. The Fees, DIN, DSC & Other Expenses are approx. Rs.25-30,000. These include Government fees that differ from State to State.

Fulfilling the needs of Lower & Middle-income groups: Nidhi Companies play an important role in meeting the needs of lower and middle-income groups by providing them financial help without complex formalities and documentation.

Easier Eligible: People getting minimum wages and belonging to lower strata are usually unable to take loans from traditional banks because of their high eligibility criteria. For them, Nidhi Company may be a good choice to obtain finance due to fewer conditions.

No External Involvement: Nidhi Companies take funds from their members and further provides loans to their members only. All transactions are done within this group only. So, no external factors are affecting the working of those companies. The investors/members themselves oversee the operations of the corporate .

Separate Entity: Nidhi Company is a separate legal entity that can acquire assets and incur debts in its own name.

Requirements for Nidhi Company Registration

·         The maximum number of Shareholders should be 200

·         Net owned Fund shall not be but Rs. 10 Lacs

·         Unencumbered deposits of not but 10% of the outstanding deposits

·         Net owned funds to deposits ratio should be quite 1:20

Documents Required For Nidhi Company Registration

·         Copy of Director’s PAN Card

·         Passport size photograph of Directors

·         Copy of Aadhaar Card/ Voter identity card of directors

·         Copy of Rent agreement(If rented property)

·         Electricity/ Water bill (Business Place)

·         Copy of Property papers (If owned property)

·         Landlord NOC (Format will be provided)

Procedure for Nidhi Company Registration

Step 1: Applying for DIN and DSC

First, the administrators of the Nidhi company are to use for DIN (Director’s Identification Number) and DSC (Digital Signature Certificate). DIN is issued by the MCA and DSC may be a digital signature used for all e-filing processes. This step are often skipped for the Director who already has DIN and DSC.

 

Step 2: Name Approval

Now, you would like to settle on and suggest 3 different names to the MCA for your Nidhi Company. Out of those 3 names, just one are going to be accepted for your Company by the MCA. The proposed names must be unique and not matching to the names of other already registered companies. As

per Rule 8 of the Company Act. The approved name will remain valid for 20 days only.

Step 3: MoA & AoA (Memorandum of Association) and AoA (Articles of Association).

Association) and AoA (Articles of Association). These must mention the most objective of incorporating a Nidhi company as a charity. The MoA and AoA are to be filed to the ROC (Registrar of Companies) with the subscription statement.

Step 4: Certificate of Incorporation (CIN)

It takes between 15-25 days to make a Nidhi company registration and obtain the incorporation certificate. This certificate declares that a corporation has been created and it mentions the corporate number (CIN) also .

Step 5: PAN, TAN, and Bank Account

Lastly, you need to apply for both “PAN and TAN”. The PAN and TAN are usually received within 7 working days. Later, you've got to urge a checking account opened by submitting the Certificate of Incorporation, MoA, AoA, and PAN to the bank.