Q. Why it is called NPO, NGO and how it is different from trust registration?

Section 8 company is a company without any profit motive. Its main objective is to achieve the social causes and to help the society in any way possible. NPO, NGO are similar terms and are used inter changeably. NPO and NGO is another name for trust, section 8 company. Trust registration is another option to register NPO in case section 8 company is good for you.

Q. What are annual Compliances/filing for section 8 Company?

The annual compliances of the section 8 company is very similar to normal companies. The highlights of which are as follows: Need to take atleast two board meeting during the year, Audit is mandatory, Annual return is to be filed every year with other efiling forms like MGT 7 , AOC 4, Further every year income tax return is also required to be filed, Additional compliances to fulfill the registration like 12AA, 80G etc.

Q. Any checklist for Incorporation of Nidhi Company?

Planning to register a Nidhi Company in India, then you must know the following checklist includes must be familiar with how the Nidhi Company works, You should know about the documentation involved, How to make members in the Nidhi Company, You should be aware of the branches of the Nidhi Company,Nidhi Software to be used.

Q. Is Nidhi Company require any Reserve bank (RBI) license to register?

No, Nidhi Company does not require any license from the Reserve Bank of India (RBI), nor it is bound by any regulation of the Reserve Bank of India. RBI has specifically exempted the Nidhi Companies from its core provisions.

Q. Is registration fees for section 8 company is more than that of trust registration?

Yes, section 8 company is more costly than the simple trust registration. Section 8 company requires Central Government approval and many other additional requirements to start with. On the other hand, the trust registration is done at the local SDM office and generally takes Rs.6000 to register. However, Section 8 company is more authentic and offers more satisfaction and trust to the general public.

Q. What is the total time taken to register Nidhi Company in India?

Hubco.in is committed for a faster registration of the Nidhi Companies. It takes around 15 to 20 days to register the Nidhi Company in India.

Q. How many branches can a Nidhi Company open?

A Nidhi Company is not allowed to open any branches before 3 years that too on a condition that profit has been earned by the Nidhi Company in all the three years consecutively. Also, as per law, branches cannot be opened before three years even with any permission.

Q. Can Nidhi Company open branch outside the state of registration?

No, a Nidhi company cannot open branch outside the state in any case.

Q. How much deposit does Nidhi Company can take from the members?

The quantum of deposits depends upon the net owned fund of the Nidhi Company. As per law, it has to maintain the ratio of 1:20. Which means if we have net owned fund (NOF) of Rs.100, I can take deposit of Rs.2000/-.

Q. How to add members in a Nidhi Company?

Adding a member in a Nidhi Company is the most important task because everything starts from here only. If you are not adding members properly, then all the business you done with the so called members become illegal.