Nidhi Company Registration
Nidhi Company Registration is corporate form of company formed by small group of members for cultivating the habit of saving and financial assistance at the time of requirement among the members of the company.
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Nidhi Company registration is regulated by Companies Act 2013, Section 406 governs the registration requirement of a Nidhi Company. A Nidhi Company is a company which is formed for the purpose of cultivating the habit of saving among its members and also provides financial assistance in the form of loan to its members in case of requirement.
Even the nature of transaction is accepting deposit and lending loans, this nidhi company registration are exempted from obtaining approval from RBI. The exemption given by RBI to nidhi companies from obtaining approval is due to the transactions regulated closely amongst the members of Nidhi Company.
Nidhi Company registration need to have a minimum capital requirement of INR 5 Lacs for registration and minimum 7 members, out of them atleast 3 should be directors. The proposed Nidhi Company registration must form the rules for administration of Nidhi Company in the form of MoA (Memorandum of Association) and AoA (Articles of Association).
Nidhi company registration are governed by the provision of Companies Act 2013 and Nidhi Rules 2014. Nidhi Rules 2014 was inserted by Ministry of Corporate Affairs by way of notification dated 31.03.2014. Nidhi Rules 2014 governs, incorporation and incidental matters of Nidhi company, Requirement of minimum number of members and net owned funds, restrictions and prohibitions on Nidhi companies, Share Capital and allotment, branches of nidhi companies, Acceptance of deposits by Nidhi companies, application form for deposits, loans, rate of interest, rules relating to directors, dividend and other provisions for smooth functioning of Nidhi companies.
Nidhi company registration must not engage in any chit fund, hire purchase, insurance or any other type of investment in shares or debentures. These Nidhi company must adhere for the mutual benefit amongst its participating members.
Post incorporation, within one year of incorporation the number of members should reach to minimum 200, the net owned funds should be more than INR 10 Lacs, unencumbered term deposit should be at-least 10% or higher of the total outstanding deposits. After comply with this post registration requirements, the Nidhi Company need to inform the registrar of companies through e-form NDH-1. If the Nidhi company unable to meet these above mentioned requirements within one year on incorporation, then it need to file form NDH-2 for extension of time. Even after post 2 years of registration the nidhi company unable to comply with above mentioned requirements then such nidhi company is restricted to accept any further deposits and shall be liable for penal consequences.
Regulatory compliance for registered Nidhi Company is filing of Annual Return comprising of Audited Financial Statement to the Registrar of Companies, filing of income tax return annually and other requirement as imposed by Companies Act to regulate Nidhi Companies.
We at ReturnFilings.Com will understand the purpose of your proposed set-up of Nidhi Company and thereafter will provide you analysis of registering in this category covering almost all scenarios to carry out your activities effectively and efficiently. Based upon the Registration Certificate we need obtain a PAN (Permanent Account Number) in the name of registered entity to carry out the business. We at ReturnFilings.Com will apply for PAN on behalf of your Registered Nidhi Company and thereafter provide registration under other regulatory requirement based upon the need of such registration i.e. GST, TAN, Import Export Code etc.
Apart from above, even after obtaining registration under various laws, we at ReturnFilings.Com also fulfill various compliance on your behalf in order to ensure proper and smooth functioning of business and to avoid unnecessary interest or penalty for non-compliance. We at ReturnFilings.Com are determinate to provide end to end solution, our motto is you concentrate on your business while we at ReturnFilings.Com will take care of all your compliance need.