Nidhi companies, NBFCs, aid businesses with easy loans among members without RBI licensing, fostering Indian lending businesses.
Features Of Nidhi Company Registration Or Nidhi Limited Registration
The registration of a Company is quite a tedious process and requires a lot of formalities. A private limited company registration follows a series of steps mentioned below.
Separate Legal Entity
The company guards itself against risks and losses due to being considered a separate entity, so every director and shareholder is protected. After the Nidhi limited registration, it becomes a separate legal entity.
Changing Owners Is Easily Allowed
Changing directors or shareholders in private limited is a straightforward process that usually comes into practice very quickly.
No RBI Regulations
Nidhi company registration offers the benefit of not requiring any permission from RBI to start its loan business. Hence the business can start as soon as they get Nidhi limited registration.
Interest Income
Nidhi registration company can earn interest up to 20% depending upon the terms and conditions. This interest also becomes a stable income for the companies like this.
Ease Of Expension
Nidhi company can open up to 3 branches in the same district. It can happen only after the completion of 3 years of prior branches. Nidhi limited registration exhibits the required status for each company.
Safe Lending Business
Nidhi registration company lends money against various entities or securities like gold, immovable property, Fixed Deposits, etc. As a result, it provides adequate resources for recovering the loan amount.
Minimum Investment
You can have a start-up as a Nidhi registration company with as less as Rs 5 lakhs of capital and get the Nidhi limited registration.
Low Risk Of NPA
As we all know, Nidhi registration company is open only for its members hence giving a reasonable assurance about the safety of your money.
Easy Found Available
Nidhi limited registration requires at least 200 members for starting up and ultimately provides it with easy fund availability from its members.
Features Of Nidhi Company Registration Or Nidhi Limited Registration
The registration of a Company is quite a tedious process and requires a lot of formalities. A private limited company registration follows a series of steps mentioned below.
Nidhi Company Registration online or Nidhi limited registration requires at least seven members out of which three should be designated, directors. However, after registration, they should acquire at least 200 members within one year.
Nidhi company registration online requires a minimum equity share capital of Rs 5 lakh, but its net owned funds must be increased to at least Rs 10 lakhs. Nidhi Bank Registration is necessary under the Companies Act, 2013.
Even though Nidhi company registration online is restricted, it is necessary to ensure that the objective mentioned in the memorandum of association is to cultivate the habit of frugality and savings among the members, to accept and lend to its members only for their mutual benefit.
- After Nidhi bank registration or Nidhi limited registration, Nidhi Company should meet the following capacities
Documents For Nidhi Company Registration Online
Nidhi company registration online can be done online as well. The following documents must be present for Nidhi Company Registration Online.
Rent agreement/lease Deed/NOC from the owner" needs to be present for Nidhi finance company registration.
Electricity bill, telephone bill, Property Receipt" is required for Nidhi finance company registration.
- 5 simple steps for Nidhi Limited Registration:
Advantages Of Private Limited Company Registration In India
These are all the necessary steps for pvt ltd company registration in India
Limited risk to personal assets
Shareholders of a private limited company have limited liability. Shareholders of registered companies do not have any personal liability.
Legal Entity
After registration of a company or private limited company registration, it becomes a separate legal entity from its owners. The company is responsible for the management of its assets & liabilities. It is possible to do so after registration of a private limited company.
Raising capital
Online company registration in India is preferred by owners as it helps them raise funds through equity.
Trustworthiness
Online company registration in India takes place by the Registrar of Companies under the Companies Act, 2013. Also, discussion with all the directors provides the formation of the company. Hence a PLC form of business structure is a more reliable source. Pvt ltd company registration helps to build trust amongst the general public.
Continue existence
After a successful Pvt ltd company registration, it has to have “perpetual succession”, which means that it can continue with its operations until the day after it is legally dissolved and ceases to exist. The company has a separate legal entity that cannot get affected by the death or dissolution of any of its members. However, it continues to exist irrespective of the changes in membership.
Restrictions For Nidhi Bank Registration Under Nidhi Rules, 2014
As per Nidhi Rules 2014, Nidhi companies are not authorized to deal with the following businesses:
FAQ's
Few doubts important to be resolved quickly
A total of 7 members are required to startup a Nidhi limited company or nidhi bank registration out of which at least 3 members should be directors of the company.
No, every process involved with nidhi limited company is done online . Your work is only to send scanned documents and forms and all e-forms will be filled electronically on MCA Portal.
Digital Signature Certificate is an instrument via which you can sign all the documents electronically. As every process of private limited is done online hence DSC is one such important step in the process. For nidhi bank registration, DSC must be obtained at the very first step.
These articles contribute a really important piece of information for the directors and shareholders as it comprises their roles and responsibilities for the company and contains all the rules, vision and mission of your Nidhi Limited company. They are very important documents for nidhi bank registration.
The answer is NO. Nidhi company doesn’t need any permission from RBI for lending money. Thus, the Company can start its lending business as soon as it gets registered. Once the nidhi bank registration is done, it can start its operations.
The word “ Nidhi “ is a Hindi word which means “funds “ in English. Hence as the company deals in providing funds to various businesses the government has hence issued the word “Nidhi “ as such companies name.
