Nidhi Company
A Nidhi company is a type of non-banking financial company (NBFC) that is registered under the Companies Act, 2013. The primary business of a Nidhi company is to provide loans and accept deposits from its members.
Eligibility
The minimum number of members required to form a Nidhi company is 200.
The minimum paid-up capital required is INR 5 Lakhs.
All directors of the company must be Indian citizens and residents.
The company must have a minimum of three directors.
Document Required
PAN Card of all directors.
Address proof of all directors (Aadhar Card/Voter ID/Passport).
Passport size photographs of all directors.
Rent Agreement (in case of rented premises).
NOC from the owner of the premises (in case of owned premises).
Benefits
easy to set up and require fewer formalities compared to other types of NBFCs.
Low Cost of Funds
eligible for government subsidies and grants
Nidhi companies are owned and managed by their members.
Issues for registering a Nidhi Company
Registering a Nidhi Company in India involves compliance with specific regulations. Here are ten common challenges faced by individuals during the registration process:
1.Stringent Regulatory Compliance:
Nidhi Companies are subject to strict compliance requirements, and understanding and adhering to these regulations can be complex.
2.Capital Requirements:
Meeting the minimum capital requirements for a Nidhi Company can be a challenge, as there are specific guidelines regarding the amount of capital that must be raised.
3.Documentation Challenges:
Gathering and preparing the required documentation, including the incorporation documents, can be time-consuming and require attention to detail.
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FAQ
A Nidhi company is a type of non-banking financial company (NBFC) that is registered under the Companies Act, 2013. The primary business of a Nidhi company is to provide loans and accept deposits from its members.
To register a Nidhi company in India, the following eligibility criteria must be met:
a. The minimum number of members required to form a Nidhi company is 200.
b. The minimum paid-up capital required is INR 5 Lakhs.
c. All directors of the company must be Indian citizens and residents.
d. The company must have a minimum of three directors.
The process for registering a Nidhi company in India involves the following steps:
a. Obtain DIN (Director Identification Number) and DSC (Digital Signature Certificate) for all directors.
b. Reserve a name for the company with the Ministry of Corporate Affairs (MCA).
c. File the Incorporation documents (MoA and AoA) with the MCA.
d. Obtain PAN and TAN for the company.
e. Obtain a certificate of incorporation from the MCA.
The following documents are required for Nidhi Company registration in India:
a. PAN Card of all directors.
b. Address proof of all directors (Aadhar Card/Voter ID/Passport).
c. Passport size photographs of all directors.
d. Rent Agreement (in case of rented premises).
e. NOC from the owner of the premises (in case of owned premises).
The following are the compliance requirements for a Nidhi Company in India:
a. Filing of annual returns with the MCA.
b. Preparation and maintenance of books of accounts.
c. Conducting annual general meetings (AGMs) and maintaining minutes of the meetings.
d. Appointing an auditor for conducting an annual audit.
e. Filing tax returns with the Income Tax Department.
Yes, it is mandatory for a Nidhi Company to appoint a company secretary within 6 months of its incorporation.
The consequences of not complying with the regulations for Nidhi Companies in India may include penalties, fines, and even the de-registration of the company. It is important to comply with all regulations and guidelines set by the Ministry of Corporate Affairs to avoid any legal consequences.
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