Register Nidhi Company
(Mutual Benefit) India
- - Nidhi Company Registration in 20 days
- - After Company Formation Compliance Support by experts
- - Work Handled by Top Nidhi Experts
Nidhi Company Registration
Know what is Nidhi Company and how it is registered.
What is a Nidhi Company?
A Nidhi Company is a public limited company which is formed with a sole purpose of accepting deposit and lending money only to its members. It is also an Non Banking Financial Company (NBFC) which has been exempted from the provisions of RBI.
How to register Nidhi Company in India?
Registering a Nidhi Company is a big thing because it something which no ordinary person can start. Starting with Nidhi can gradually upgrades you to NBFC and later on to Bank. Three broad heads for registration are as follows:
# Prepare DSC and DIN: The first step is to prepare Digital Signatures (DSC) and Director Identification Number (DIN). Further, make sure to apply DSC for subscribers as well to complete the procedure under the form SPIC and to e-file eMOA.
# File for Name Approval: After applying for DSC and DIN, the next step is to file for Name Approval. One can file for Name approval under Form INC 1 or one can file with incorporation under Spice Form.
# File for Incorporation: Once your name is approved, you can file for incorporation through Spice Registration forms.
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Learn the basics about Nidhi Company & its Compliance
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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. 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.
A Nidhi Company can charge 7.5% more than it is paying on deposits. E.g. If Nidhi Company is paying 11% on Fixed Deposits, then maximum interest rate on loan can be charged at 18.5%.
To start with, you need atleast 7 persons to start the Nidhi Company registration. Further, out of seven, three shall also be elected as the directors of the Company. Directors are the person who runs the company.
Yes, a Nidhi Company can be registered online without being present in person. It’s a completely online process and hubco.in is a brand in Nidhi Company consultancies.
No body corporate like Private company, public company nor trust can become member of the Nidhi company. This is as per Nidhi Rules, 2014.
There are various compliances are to be taken care of like ratio, company law, money laundering etc. Hence, study of all relevant act is important. Further, important compliance as per Nidhi Rules and Companies Act are as follows:
- File NDH 1 within 60 days from the end of the financial year.
- File NDH 3 half yearly.
- Fulfill basic requirements like 200 members, 10 lakh Net owned funds. If not able to comply, then apply for extension in the Form NDH 2.
- Companies Act compliances like filing of annual returns, Balance sheet etc
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. Hence, you should know about how to add members in a Nidhi Company.
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/-.
Nidhi Company is the type of Non-Banking Financial Company (NBFC) which has been exempted from the Reserve Bank of India (RBI) provisions, and hence no RBI guideline is applicable to the Nidhi Company. Further, Nidhi Companies are governed by the Nidhi Rules, 2014.
The maximum interest rate a Nidhi Company can offer on deposits must equal to the rate of interest offered by NBFC which is currently 11.00%. Further, in case of saving account, the maximum Interest rate can be 2% more than a nationalized bank is offering.
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.
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. It is regulated by Ministry of Corporate Affairs (MCA) by Nidhi Rules, 2014.
If you are planning to register a Nidhi Company in India, then you must know the following checklist:
- 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 about the branches of the Nidhi Company.
- Nidhi Software to be used.
Nidhi Companies becomes best when the deposit size increases. It’s a bulk game, whosoever gets more business automatically becomes the best. The top Nidhi Companies currently in India are:
- Maben Nidhi Limited
- Muthoottu Nidhi (Kerala) Limited
- Mini Muthoottu Nidhi Kerala Limited
- Kalayil Nancy Nidhi Limited
The Nidhi Company registration procedure is completely online in India and can be incorporated anywhere in India. Further, as per recent reports from MCA, it has been observed that Nidhi Companies are very famous among the southern states including Kerala, Karnataka, Tamil Nadu and further in some parts of Uttar Pradesh (UP) and Bihar.
Hubco.in provides the Nidhi Company registration services all over the India including Kerala, Bihar, Uttar Pradesh etc.
No, there is no full form of Nidhi Company, as it is in itself is a full form. If any Nidhi Company is incorporated, its name structure be like ABC Nidhi Limited.
Mutual benefit Company is another name for Nidhi Company. Earlier, companies were registered as Nidhi Company can use the words Mutual Benefit as well. However, now Mutual benefits are not used only Nidhi Limited is used.
Chit Fund Company is also known as the committee where fixed instalment is paid by the members over a definite period of time.
Nidhi Company is an NBFC which can take a deposit and lend money to its members. Hence, Nidhi Company is very different from the Chit Fund Companies.
No, a Nidhi company cannot open branch outside the state in any case.