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What is You Know About The Nidhi Company and Incorporation Process

Nidhi finance companies are mutual benefit type of companies which is works for the benefit of its members. Functions of company are limited to only its members, wherein the companies are permitted to accept deposit and give loan to its members. Legal compliance and requirements of Nidhi company registration are far less when compared with the other NBFC’s, which are functioning under the strict regulations of RBI. 

Incorporation Nidhi Company Fees
 
A Non-Banking Financial Company (NBFC), as the name suggests is a Company (registered under the Companies Act) which is engaged in financial services as per business purpose. A Nidhi financial bank being financial institutions have functions and features similar to that of traditional Banks.

Requirement of Nidhi Company Registration Services

Nidhi finance company will always be public limited company and its name should end with ‘Nidhi Limited”, currently Nidhi Company is becoming very popular for lending business.

·         At least 3 directors & 7 members are required

·         It can only accept deposits from its members

·         Directors Identification Number (DIN)

·         Not less than 200 members

·         The ratio of company net owned fund to deposits of not more than 1:20

·         Net owned funds of Rs 10 lakhs or more

Documents Required for Nidhi Company Registration

There would be no legal hassles or no complications with documentation at time of company formation. Everything would be done by our side and primary documents required for nidhi company registration which are following.

  • Pan Card
  • ID Proof
  • Bank Statement
  • Passport Size Photo
  • Registered Office Proof.

Advantages to Starting a Nidhi Company

  • Ease formation process of nidhi limited company for startup business.
     
  • The MCA has done away with the minimum Paid up capital need for Nidhis.
     
  • The loans given to the members are very lower rate of interest than the market rate
     
  • The outside members of company is not allowed to intervene in the working of the Nidhis
     
  • The Nidhi company, provides micro banking services to the rural and remote public area of India
     
  • It is fulfilling the necessities of lower and Middle-income groups
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