Here are the top 7 tips for you to keep in mind when creating a Nidhi company keeping in mind all the legal factors.
Starting a finance company, you want to legalize the existing finance business. Nidhi company is your best bet to create a finance business without Reserve Bank’s approval legally. Creating a Nidhi Company is easy now! Nidhi company is gaining importance these days, but the information about the Nidhi company registration is limited. Here we have tried to provide tips to create Nidhi Company most easily.
Nidhi Company Registration At A Glance
This company offers fantastic advantages over different types of finance businesses like NFBC registered with RBI as it allows you to accept deposits that are around 20 times the net owned fund or the capital invested. For instance, if you have studied and in the company with just 10,00,000, you will be able to accept deposits of 2,00,00,000. You need around seven people to register a Nidhi company. Still, out of this, 7 3 should be elected as directors of the company post the minimum company registration will require at least 5,00,000 as capital in the beginning.
The 5,00,000 should be deposited in the company’s bank account after registration. If all documentation is completed, then in 11 to 12 days, you can complete the process. For Creating a Nidhi Company, the post is around 50,000 INR to 55,000 INR. The document list is mentioned.
For your brand-new, unregistered business, you can select from a selection of company name search in the Vakilsearch company name generator.
Tips For Creating Nidhi Company
Primary Documents Needed For Registration Of Nidhi Company:
There is a need to produce documents such as Aadhar card, photo ID proof, pan card, voters ID, passport etc. You should also produce address proof, including bank statements, mobile electricity bills, etc. Documents for the registered office also depend on the ownership of the premise. If the premise is on rent, you must provide a copy of the rent agreement, electricity bill certificates, and a copy no objection certificate.
Suppose the premises, and then you have to provide two documents, including an electricity bill copy of the no-objection certificate. Above all, the document collection is over, and you must scan the copy because all these documents will be submitted online.
Procedure for Nidhi Registration:
The Company Registration procedure in India is witnessing a lot of change after several complaints. But it is expected that the new company registration process will revolutionize how companies or businesses in the country are registered.
The procedure includes a digital signature. The digital signature is pen drive-based software used to sign on the computer. The digital signature is one of the most critical requirements without which the company registration process cannot start.
Open Bank Account and Mark For Compliances
Once the Nidhi companies are registered, you need to open a bank account with any scheduled bank and mark the initial compliance. As per the Nidhi rules and the Companies Act, you must deposit the capital amount within two months from the incorporation date.
You can ignore otherwise if you have already registered your company with 10,00,000 capital. If not, you must raise the capital to at least 10,00,000 before filing the balance sheet. Ensure you have at least 200 members with Nidhi company to avoid the non-compliance rules.
Maintain at least a 10% unencumbered deposit with the scheduled bank.
Make Members Of The Nidhi Company
It is one of the most important questions you would be wondering how you would make members of the needy company. Suppose members are not legally added to the company when the transactions done with them will be considered void.
You can easily add members to the Nidhi company by allocating the shares or buying the share transfer. The shared transfer method is the quickest, cheapest, and one of the best ways to add members because allotment happens hand to hand, and there is no separate filing to the ministry of corporate affairs.
Loan by Nidhi Company
The only business that a Nidhi company does is to give a loan to the members and earn. Besides giving alone, the Nidhi company cannot do any other business. Additionally, as Nidhi company uses public funds to provide a loan, it is not allowed to lend any unsecured loan. In other terms, you can see that Nidhi company can only offer a secured loan against their securities. Today one of the prominent types of loan given by Nidhi company is a Gold loan.
If all the documents you have are proper, then getting this kind of loan is possible within 30 minutes. Apart from this, one can even apply for a loan against any of their property. The maximum time period for this kind of loan is five years.
Deposits Available Under The Nidhi Company
It is perhaps one of the most critical features of the Nidhi company that keeps it unique from other finance companies. The company is allowed to accept deposits.
For example, you can apply for a fixed deposit here, where you can quickly raise the fund under the Nidhi company post office and again accept deposits from the members. There is no upper limit on the single deposit. The company can offer around a 12.5% return per annum. The savings account here can offer an interest of around 6%.
Microfinance Under Nidhi Company
The question is one of the most widely asked questions about whether the company can do microfinance in the country. The answer is generally no.
Nidhi company is allowed only to do secured loans, and it is impossible to grant unsecured loans. Nidhi company can’t get into any microfinance business. Nidhi company is a particular company, so, naturally, more components would be added to the portfolio.
You can get all the details about the Nidhi finance company here. The finance company’s calculation gets challenging, and it is impossible to carry it out manually. Hence, with the help of Nidhi software, the whole process of loan calculation and balances in the savings account can be handled.
Conclusion:
If you are looking for an expert who can help you incorporate a Nidhi company, then you are in the right space. Vakilsearch is the one-stop destination assisting individuals in providing everything they want correctly.
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