A Nidhi Company is formed with the motive of inspiring the members to save money and helping them in their time of need. All the members of the Nidhi company invest the money to expand the capital of the company and they can get loans and advances from the company if they require. This capital is also used to acquire government-issued stocks/certificates/debentures/securities that expand the limit of the company. Nidhi company is acknowledged by section 406 of the Companies Act 2013. It is governed by the Ministry of Corporate Affairs and ruled by the RBI. Registering a Nidhi company can be quite a Hustle for anyone so legal24by7 is here to support you. Take your first step with us
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Who should start their corporate journey by establishing a Private Limited Company?
The core business activities that a Nidhi company performs as borrowing and lending money between the members to support the members on financial terms. It was established to remove the need for money landers in between because usually people avoid taking money as a loan from Bank due to high documentation requirements and get exploited by the money lenders. It was also formed to encourage the money-saving habit and investment habits of the members. The money that the company saves can also be invested in government-issued stocks, bonds, debentures, and security to expand the limit of the company and grow.
1. Develop Saving Habits
Nidhi Company is formed to develop a platform that could mutually benefit society. It encourages all its members to save money & when needed members can borrow money from it.
2. Minimal Complications
You don't have to go through all the complications that a bank might put in from of you while lending you money. Nidhi Company has low interest or zeroes interest rate structure which makes it more attractive for the members.
3. Leverage by RBI
RBI has given extreme leverage when it comes to Nidhi Companies. If you are registering one in India you don't have to go under strict RBI compliances.
• Self-Attested Copy of the PAN Card
• Other Identity Proof like Aadhar Card/ Passport / Driving License / Voter Identity Card
• Passport Size Photo of Directors
• List of directors (Minimum 3 members who are not minors or more)
• List of shareholders (Minimum of 7 people who are not minors)
• Minimum equity share capital of Rs 5,00,000
• Bank Passbook or other statement reflecting recent transactions.
Additional Documents
• No-Objection letter by the owner of the address company is using
• Supporting documents to be signed by the owner to verify the address like Electricity Bill / Telephone Bill / Gas Bill / Water Bill
1. Select Package
Your journey starts with the package selection. Our team of professionals is here to assist you & solve your doubts accordingly.
2. Digital Signature
We are here to assist you with your MoA application. We will obtain the digital signatures first & then continue with the link generation for eKYC verification.
3. Name Approval
We will assist you with the most exciting step which is naming your dream company & getting it approved by the submission of the RUN form.
4. Final Document Submission
The final stage is the submission of the company’s documents with the MCA. It is our duty to LLP Partnership deed & uploads it to the MCA Portal.
Legal25by7 is here for you on every step of your Nidhi Company Registration. If you have any doubt about whether to go for any other type of company, we are here to resolve this confusion for you. We will enlighten you about what are the different ways you can set up your dream organizations and what benefits you get from each one of them. Your dream is to start your journey and our aim is to see you do it smoothly.
For convenient registration of a Nidhi Company, we have a team of highly skilled professionals and a large network of people who can assist you with every service that you will need. We are ready to play the role of facilitator and see you climb the ladder of success; all you need to do is to take the first step and connect with us.
The Nidhi Company comes under the regulation of section 406 of the Companies Act 2013. It is incorporated to build the money saving & lending system for its members.
You need a minimum capital of Rs. 5 Lakh to start a Nidhi Company.
To start a Nidhi Company in India you need at least five Directors.
To start a Nidhi Company in India you need at least eight shareholders.
There are no regulations regarding the criteria that a representative of Nidhi Company must check so anyone can become a representative.
With Legal24by7 you can expect the incorporation process to be compiled in 20 to 30 working days. To enhance the incorporation process you can choose a unique name for your company and prepare all the required documents in advance. We have a team of experts who will help you and guide you through the way of your registration process to ensure that everything goes smoothly.
Yes, you need a minimum of 200 members within one year of the commencement of the Nidhi company to continue working.
If you don't have 200 members you can file for an extension from the government.
Yes, a Nidhi company can open a current account in a bank.
The main aim of the Nidhi company is to promote the saving habits in the members so it is profitable for those who are connected with it.
The ministry of corporate affairs regulates and supervises the working of Nidhi company in India.
