Nidhi Company
Nidhi means a company which has been incorporated with the objective of reservation of funds amongst its members and also for borrowing and lending deposits to its members only for their mutual benefit.It develops the habit of savings amongst its members and works on the principle of mutual benefit.Minimum of 3 directors required for the Nidhi company registration. Nidhi company is a non-banking financial company and economical to register.All the Nidhi company's incorporated shall have the last word as "Nidhi Limited" as part of its name.
Also,Nidhi company registration is the only form of company available to start the loan company in India without RBI approval.Nidhi Company can not work outside the state hence you need another registration for Nidhi company to expand in another state.
It offers
- Minimum Documentation and formalities
- Low rate of Interest
- No external involvement in management
- Useful for lower and middle class
- Safe and secure investments
Advantages Of Nidhi Company Registration
- No Minimum Share Capital Requirement
- Easy Transfer of Ownership
- Tax Benefits
- No need to use "Nidhi" or "Limited" title
- No Stamp Duty
- Clear Objectives for easy donations and loans
- Easy to Manage
- Exemptions and Privileges under Companies Act, 2013
Documents Required for Nidhi Company Registration
1. Copy of Director's PAN Card
2. Copy of Rent agreement(If rented property)
3. Landlord NOC (Format will be provided)
4. Passport size photograph of Directors
5. Electricity/ Water bill (Business Place)
6. Copy of Aadhaar Card/ Voter identity card of directors
7. Copy of Property papers (If owned proper
Minimum Requirements After Incorporation
1. Minimum number of 200 Shareholders
2. Net owned Fund shall not be less than Rs. 10 Lacs
3. Unencumbered deposits of not less than 10% of the outstanding deposits
4. Net owned funds to deposits ratio should be more than 1:20