A complete guide to register on eNidhi and avail of its benefits. The creation of a Nidhi Company is a very effective step towards the control of finances. Its primary objective is to enable people to save more money for better investments.
A Nidhi Company is regulated by law in India, so there is no question of fraud. Therefore, it has become a go-to option for various investors and businessmen across the country. Have a look at the various eNidhi registration methods to build your startup now.
A Nidhi company is a classified NBFC (Non-Banking Financial Company). It deals with a proper system of lending and borrowing money.
The company follows the guidelines under Section 406 of the Companies Act, 2013. The Ministry of Corporate Affairs is its guardian in this regard. RBI has been responsible for monitoring all financial aspects of a Nidhi company. Now you can complete the eNidhi registration made easy through simple and safe methods.
The main idea of a Nidhi company is to create a group of members who can be shareholders of the company. All lending and borrowings take place within the core members of the company. The word Nidhi implies treasure or asset. A Nidhi company encourages its members to save money and invest in profitable sources of income. The company provides loans and advances to its members when a sufficient amount is collected. You can also invest in government securities and bonds.
Who Can Apply For Nidhi Company Registration?
There are certain requirements that you need to fulfill in order to apply for eNidhi registration. The guidelines are made in accordance with the security policies of the RBI and various government financial institutions. Make sure that you confirm the following points while applying for eNidhi registration:
- There should be at least seven members involved in the company. Out of these seven, three should be readily available to become directors. The DINs are required for approval, along with the individual signatures of each member. You should also guarantee that the member number will increase to 200 within one year from commencement.
- The minimum equity share capital of the company should be Rs. 5 lakhs (this is in the form of convention nowadays). This entire sum has to be paid while registration for effective approval. Not only that, but your Net Owned Funds (NOF) should increase to at least Rs. 10 lakhs within a year.
- You should have at least 10% of outstanding deposits which are free from any financial influence. Your term deposits should be free of debt or any financial liability as such.
- The ratio of NOF to deposited money should be 1:20. Also, 10% of the said deposits should be in a fixed deposit account in a nationalized bank.
How To Register For A Nidhi Company Online?
Many people have the opinion that any online process can be risky as well as complex in nature. However, for Nidhi company registration, it is quite the contrary, with Registration of Nidhi Company made easy. You can complete the registration process for Nidhi company in three basic steps, as mentioned below.
- Approval of name: The name of your company must be unique. It should not match the name of an already existing company, or else it will be rejected. It can be under the Reserve Unique Name (RUN) form that is going to provide you with the added advantage of being creative under the rules.
- DINs and DSCs: You need Director Identification Numbers (DINs) and Digital Signature Certificates (DSCs) to initiate the Nidhi company registration process. The KYC of all the members and directors is needed to ensure the authenticity of the documents. The certificates are required to avoid financial fraud.
- Documentation and approval: Once all the signatures and documents are verified, the drafting and documentation process starts. All the drafts are carefully listed so that each member can cross-check the details. The memorandum and subscription sheets are circulated accordingly. The final step is the request for approval from the RBI.
Once the whole process is completed, you need to submit your registration through the SPICe (Simplified Proforma for Incorporating a Company Electronically) form. It requires expert supervision so that your registration is completed as per the mentioned guidelines.
Requirements For eNidhi Registration
In accordance with eNidhi registration made easy, the essential documents of each member needed for approval are as follows:
- PAN and Aadhar card
- Email ID and registered mobile number
- Passport size photo
- Bank statement/mobile bill/electricity bill/telephone bill
- Specimen signature
The above-mentioned documents should be self-attested by each member to ensure the authenticity of the information. Apart from the individual documents, you also need to produce a copy of the rental agreement with the owner of your company and any other utility bill of significance.
Benefits Of Nidhi Company Registration
There are a number of advantages of eNidhi registration for a financial company. If you have a small financial startup idea, Nidhi company will be the best choice. Here are some reasons for the same:
- No strict regulation: Although a Nidhi Company is government-regulated, and its financial aspects are checked by RBI; there are no stringent rules to follow. You must fulfil the basic requirements to manage your company effectively. Any third party does not influence your interest rates, lending and borrowing structures. It is a very convenient way to start a business that will guarantee success in the long run.
- No minimum startup amount: The rule generally says that you have to maintain an equity fund of Rs. 5 lakhs in order to start a Nidhi company. In reality, the Government has already done away with this rule, so you just need to show a proper financial capability to start a business.
- Easy to build: A Nidhi company requires a minimal strategy for its formation. If you have the right equity and members, then you just need to follow the guidelines to start your company. It should also be registered as a public company under the Ministry of Corporate Affairs.
- Organised Financial Group: The members can lend and borrow among themselves. It increases the rate of savings as well. The rate of credit is also low, so it is an added advantage.
Build Your Startup With An Easy eNidhi Registration Program
There may be very simple steps for eNidhi registration nowadays, but people often tend to confuse a lot of things. You need professional guidance while completing your registration so that it gets the necessary approval from the RBI. Contact Vakilsearch for effective eNidhi registration methods.
Our experts know about the recent updates for Nidhi company registration. They will guide you throughout the document verification process and ensure that you receive approval soon. Follow the Government and RBI rules to build up your financial business effectively.
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