Nidhi Company could be a company registered below the businesses Act, 2013 that incorporates a sole objective of cultivating the habit of thrift and savings amongst its members. Nidhi Corporation’s square measure allowed to require deposit from its members and lend to its members solely. Therefore, the funds contributed for a Nidhi company square measure solely from its members (shareholders) and used solely by the shareholders of the Nidhi Company.
Nidhi Company could be a category of NBFCs and run batted in is authorized to issue directions to them in matters about their deposit acceptance activities. However, in recognition of the very fact that these Nidhi’s handle their shareholder-members solely, run batted in has exempted the notified Nidhi’s from the core provisions of the run batted in Act and alternative directions applicable to NBFCs. Therefore, Nidhi Company is a perfect entity to require deposit from and lend to a particular cluster of individuals.
Reasons to Register a Nidhi Company
Separate Legal Entity
A Nidhi company could be a legal entity and a jural person established below the Act. Therefore, a Nidhi company has wide legal capability and may own property and conjointly incur debts. The members (Directors) of a Nidhi company don’t have any liability to the creditors of a Nidhi company.
The Board of Management of a Nidhi company is simply modified by filing straightforward forms with the Registrar of corporations. The Board of Management of a Nidhi company controls the activities of the Nidhi Company.
A Nidhi company has ‘perpetual succession’, that’s continuing or uninterrupted existence till it’s de jure dissolved. A Nidhi company, being a separate legal person, is unaffected by the death or alternative departure of any member however continues to be existing regardless of the changes in membership.
A Nidhi company being a jural person, will acquire, own, relish and alienate, property in its own name. No member will build any claim upon the property of the Nidhi Company as long because it could be a going concern.
A Nidhi company enjoys higher credibleness when put next to Mutual profit Organizations. Nidhi Corporation’s square measure registered and monitored by the Central Government. Mutual edges Organization square measure on the opposite hand ruled and monitored by State Governments.
DOCUMENTS REQUIRED FOR NIDHI COMPANY
Identity and Address Proof
Identity and address proof are going to be needed for all administrators and shareholders of the corporate to be incorporated. Just in case of Indian nationals, PAN is obligatory. For foreign nationals, apostilled or notarised copy of passport should be submitted compulsorily. All documents submitted should be valid. Residence proof documents like statement or electricity bill should be but two months previous.
Registered office Proof
All corporations should have a registered workplace in Asian country. To prove access to the registered workplace, a recent copy of the electricity bill or capital levy receipt or water bill should be submitted. Alongside the utility bill, rental agreement or sale deed and a letter from the owner with his/her consent to use the workplace as a registered workplace of a corporation should be submitted.
How we help with nidhi company registration
Ali Tax World can register a Nidhi Company in 20 to 30 days, subject to ROC processing time.
Got questions? Request a call from an IndiaFilings Business Advisor.
Obtaining DSC & DIN
Digital Signature Certificate (DSC) and Director Identification Number (DIN) is needed for the projected administrators of the Nidhi Company. DIN and DSC may be obtained for the projected administrators at intervals five to seven days.
Name Approval & License
Once DIN and DSC square measure accessible for atleast 3 administrators, application for reservation of name for Nidhi Company may be created to MCA. Name approval may be obtained in three to five operating days.
Nidhi Company Registration
Once the name approval is obtained, registration documents may be submitted to the MCA alongside associate degree application for registration. MCA can typically approve the appliance for incorporation in five to seven days, subject to their time interval.
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