Introduction:-
Starting a Nidhi Company Registration can be a lucrative venture, but it comes with a set of legal requirements that must be followed diligently. In this article, we will walk you through the essential steps and legal obligations involved in Nidhi Company registration.
Understanding Nidhi Companies:-
A Nidhi Company is a type of non-banking financial institution (NBFC) recognized under Section 406 of the Companies Act, 2013. The primary objective of a Nidhi Company is to promote savings among its members and lend to them at reasonable interest rates. It essentially functions as a mutual benefit society.
Legal Requirements for Nidhi Company Registration:-
1.Minimum Number of Members:
A Nidhi Company must have at least 200 members within one year of its incorporation.
2. Minimum Capital Requirement:
The minimum paid-up equity share capital should be Rs. 5 lakhs.
3. Directorship:
A Nidhi Company should have at least three directors. All directors must be individuals and hold Director Identification Numbers (DINs).
4. Ownership:
The equity shares of a Nidhi Company can only be held by its members.
5. Name of the Company:
The name of the Nidhi Company should end with "Nidhi Limited."
6. Object of the Company:
The primary object of the company must be cultivating the habit of thrift and savings among its members.
7. Compliance with RBI Guidelines:
A Nidhi Company should also comply with the guidelines and rules set forth by the Reserve Bank of India (RBI).
8. Branches:
A Nidhi Company can open branches only after it has earned profits for three consecutive financial years.
Procedure for Nidhi Company Registration:-
1.Name Approval:
Apply for the availability of the company name to the Registrar of Companies (ROC).
2. MOA & AOA Drafting:
Draft the Memorandum of Association (MOA) and Articles of Association (AOA) in compliance with the Companies Act.
3. Application Filing:
Submit the required documents, including MOA, AOA, and other essential forms, to the ROC.
4. Certificate of Incorporation:
Once the ROC is satisfied with the documents, they will issue the Certificate of Incorporation.
5. Obtain TAN and PAN:
Apply for Tax Deduction and Collection Account Number (TAN) and Permanent Account Number (PAN) from the respective authorities.
6. Bank Account Opening:
Open a bank account in the name of the Nidhi Company.
7. Compliance with RBI Guidelines:
Ensure compliance with the RBI guidelines by fulfilling the necessary conditions.
Conclusion:-
Starting a Nidhi Company requires careful adherence to legal requirements and procedures. It is advisable to seek professional guidance to navigate through the complexities of Online Nidhi Company Registration. Once established, a Nidhi Company can serve as a valuable financial institution within the community, fostering the culture of thrift and savings among its members.