Documents Required for Nidhi Company in India:
- Memorandum of Association (MOA): It is a legal document that sets out the constitution and the purpose of the Nidhi Company.
- Articles of Association (AOA): AOA is a document that contains rules, regulations, and bye-laws for the internal management of the Nidhi Company.
- PAN Card: A copy of the Permanent Account Number (PAN) card of all the proposed directors of the Nidhi Company.
- Identity Proof: A copy of the Aadhaar card or any other valid identity proof of all the proposed directors of the Nidhi Company.
- Address Proof: A copy of the Passport, Voter ID card, or any other valid address proof of all the proposed directors of the Nidhi Company.
- Residential Proof: A copy of the electricity bill, telephone bill, or any other valid residential proof of all the proposed directors of the Nidhi Company.
- Registered Office Proof: A copy of the electricity bill, telephone bill, or any other valid address proof of the registered office of the Nidhi Company.
- NOC: A No Objection Certificate (NOC) from the landlord of the registered office of the Nidhi Company.
- Bank Statement: A copy of the bank statement of the proposed Nidhi Company.
- Certificate of Incorporation: A copy of the Certificate of Incorporation of the Nidhi Company.
It is advisable to consult with a legal professional or a company secretary for the proper documentation and registration process of a Nidhi Company.
Benefits of Nidhi Company in India :-
Nidhi Companies in India are non-banking financial companies (NBFCs) that are regulated by the Ministry of Corporate Affairs. These companies are formed with the objective of cultivating the habit of thrift and savings among its members and providing them with access to affordable credit. Here are some of the benefits of Nidhi Companies in India:
- Ease of Formation: Nidhi companies are relatively easy to form and require a minimum of 7 members to get started. The process of registration is straightforward and can be completed within a few weeks.
- Limited Liability: Members of a Nidhi company have limited liability, which means that their personal assets are not at risk in case the company faces any financial difficulties.
- Low Cost of Borrowing: Nidhi companies can provide loans to their members at a lower rate of interest as compared to other financial institutions. This is because Nidhi companies are primarily formed to help their members save and borrow money at an affordable rate.
- No External Involvement: Nidhi companies are self-sufficient and do not require any external involvement from banks or financial institutions. This means that they are not subject to the stringent regulations that other financial institutions are required to follow.
- No Need for a License: Nidhi companies do not require a license from the Reserve Bank of India (RBI) to operate. This means that they are not subject to the same level of regulatory oversight as other financial institutions.
- Trust and Credibility: Nidhi companies are formed with the objective of promoting thrift and savings among its members. This means that they are trusted by their members and have a high level of credibility.
Overall, Nidhi companies in India are an excellent option for individuals who want to save money and borrow at an affordable rate. They are relatively easy to form and do not require a lot of regulatory oversight, which makes them a popular choice for small and medium-sized businesses.
Formation of Nidhi Company in India:
In India, a Nidhi Company is a type of non-banking financial company (NBFC) that is formed with the objective of cultivating thrift and savings habits among its members. Here are the steps for forming a Nidhi Company in India:
- Minimum Requirements: The minimum requirements for forming a Nidhi Company are: a minimum of 7 members, 3 directors, and a minimum capital of Rs. 5 lakhs.
- Name Reservation: The first step in the process of forming a Nidhi Company is to obtain a name reservation from the Registrar of Companies (ROC). The name should be unique and not already registered with the ROC.
- Memorandum and Articles of Association: After obtaining the name reservation, the Memorandum and Articles of Association (MOA and AOA) must be drafted and filed with the ROC. These documents contain the rules and regulations governing the company.
- Incorporation: Once the MOA and AOA are approved by the ROC, the company can be incorporated by filing the incorporation documents with the ROC along with the prescribed fee.
- Certificate of Incorporation: After the ROC verifies the documents and fees, the Nidhi Company will receive a Certificate of Incorporation.
- Opening of Bank Account: After the certificate of incorporation is received, the company can open a bank account in the name of the company and start operations.
- Other Compliances: Once the company is formed, it must comply with various legal and regulatory requirements such as maintaining books of accounts, holding annual general meetings, filing annual returns with the ROC, etc.
It is important to note that the process of forming a Nidhi Company can be complex and time-consuming. It is advisable to consult a professional, such as a chartered accountant or a company secretary, for guidance in this matter.
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