What is a Nidhi company’s registration and its process?

What is Nidhi Company?

A Nidhi company registration is a kind of Non-Banking Financial Company (NBFC). Nidhi company registration online does not want to register for the license from RBI. However, they have to registered as a public organization and their names must end with ‘Nidhi Limited’.

Nidhi Company Prohibition Activities 

The Nidhi company registration has to abide by some prohibitions which charged on them in terms of their activities. These activities can listed as given:

• Nidhi company registration online cannot deal with chit funds.
• cannot deal with hire-purchase finance.
• cannot deal with the lease of finances.
• It can’t deal with the insurance business.
• It cannot accept deposits from any other human except members.
• cannot lend funds to any other human except members.

Advantages of Registering as Nidhi Company

Lawgicalindia do provide various advantages which can assisted by registering as a Nidhi company registration. These advantages added up as follows:

• Legal existence: The registration of an organization as an online Nidhi company registration makes it an isolated entity. It enjoys isolated legal existence as a registered Mutual Benefit Society. Being an isolated entity from the members of the organization, the organization can dispose of or obtain assets in its own name.
• Limited liability: Depending on the amount contributed or invested by the members of the organization, their liabilities will limited. The members will be responsible only for their share in the organization. Personal liabilities of the members cannot be utilized to meet the organization’s liabilities.
• Availability of funds: The members do borrow from the funds given by themselves at low-interest rates.

What are the minimum needs that are to be satisfied for the online Nidhi company registration?

There are some needs that are to be content by an organization in order to to be registered as a Nidhi company registration. The needs may be added up as follows:

• should be incorporated as a Public Limited Company under the Company Act.
• The organization must have a minimum of 7 shareholders.
• The organization must have a minimum of 3 directors.
• organization must have a minimum of Rs.5 lakh of equity capital.
• The organization must have a minimum of 200 members.
• The organization must have Net Owned Funds worth Rs.10 lakh or more.
• The company name must end with ‘Nidhi Limited’.
• The objective of the organization must be borrowing and lending of funds among the members only.
• The organization should have unencumbered term deposits of 10% or more of the outstanding deposits.
• The organization must have a Net Owned Funds to deposits ratio of 1:20 or less.
• The Director Identification Number (DIN) of all the directors 

Nidhi Company Registration Online Documents Required

The following documents should submitted in order to get an organization registered as a Nidhi company registration:

• Ownership paperwork or a lease/rent agreement has to offered as a proof of address of the registered place of business
• A NOC duly signed by the landholder or the owner of the place where the business register.
• Identity proofs
• Address proofs of the organization members
• Photographs of the organization members
• Digital Signature Certificate (DSC) of the organization
• Copies of PAN cards of the members
• DIN of all directors
• Certified copy of updated MoA of the organization
• Certified copy of updated AoA of the organization

Nidhi Company Registration Online as Forms to be filed for fusion

1. INC 9: The INC 9 form is to filed by all the subscribers to the MoA
2. DIR 2: The DIR 2 form is to filed by all the directors of the organization. Declaration as per rules 6 and 5 of Nidhi rules 2014 has to sign by all subscribers.

What is the process of incorporating a Nidhi Company?

The given steps supposed to take into reflection in order to register a Nidhi registration process:

1. DIN and DSC: The candidate has to get the Digital Signature Certificate (DSC) and the Director Identification Number (DIN) of all the directors of the company.
2. Name approval: It is compulsory to have ‘Nidhi Limited’ at the end of the organization’s name. Thus, the name of the Nidhi registration process has to approved in the form of a Public Limited organization with the words ‘Nidhi Limited’ in the end.
3. Filing COI: The Conflict of Interest (COI) has to filed by the candidate. This has to filed in form DIR- 12, INC- 7, and INC- 22.
4. Submission of details of the members: As per the needs of registration, the Nidhi registration process must have at least 200 members at the application time. The details of all the members should submitted to the Nidhi registration process board under ROC/MCA.

Factors that must into consideration while chosen a name for a Nidhi company registration online

Lawgicalindia as a Company Name plays a huge role as the name is the initial impression of the organization. The following factors are to kept in head while chosen a name for a online Nidhi company registration:

• Meaning: The meaning of the name is the foremost and first consideration to take. Ideally, the name must be applicable to the organization’s activities.
• Size of the name: The name must be meaningful and short. It is significant to keep it short as it also makes your proposed customers recall the name easier.
• Unique: The uniqueness of the name is very significant. It must not resemble or be identical to the name of any existing organization. That enlarges the chances of the name reject.
• Legal: The organization’s name must not violate the Emblems and Names Act, 1950.
• British India’: The name must not have the expression ‘British India’ in it.