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Nidhi company is a category of NBFC(Non-Banking Financial Company), that is formed to lend and borrow money from its members. It works on the belief of mutual benefit. Nidhi company is easy to assemble as it does not require to receive a license from Reserve Bank of India. Nidhi company registration is a lengthy process and requires specific eligibility criteria. What is Nidhi Company?The incorporation of a Nidhi Company is done based on the rules of the Companies Act 2013. Nidhi company requires a minimum of three directors and seven shareholders. The objectives, as well as functions of a Nidhi Company, are to encourage the habit of saving among its members. It receives deposits from the members and lends the money only to its members. All these have to be mentioned in the Memorandum of Association at the time of incorporation. What are the features of Nidhi Company Registration?The features of Nidhi company are-
What are the advantages of Nidhi company registration?The advantages of Nidhi company registration are-
What are the minimum requirements for Nidhi Company Registration?The minimum requirement for registration of Nidhi Company is- What are the documents required for Nidhi Company Registration?
What is the procedure for registration of Nidhi Company?
Describe the Compliances of a Nidhi Company?Nidhi Company compliances are divided into three parts: • Pre-Incorporation Compliances, • Post-Incorporation Compliances, • Event-based Compliances. What are the Pre-Incorporation compliances for Nidhi Company?Nidhi Company has to follow some compulsory compliance to get Nidhi Company Registration. The essential agreements are mentioned below:-
What are the post-registration compliances?The post-registration compliances you need to follow are-
What are the Event-Based Compliances of a Nidhi Company?Usually, event-based compliances are essential to file only once through the company registration process. Also, the agreements must be followed when there is any change in the Company's structure, which is non-periodical. Below is the list of event-based compliances:
Which activities are prohibited by Nidhi Company?The activities that are not permitted by the Nidhi Company are-
What are the kinds of Deposits for Nidhi Company Registration?According to Rule 13, there are three types of deposits under Nidhi Company- What is the Maximum Deposit Limit in Nidhi Company Registration?Nidhi Company will not accept deposits that are beyond 20 times its NET OWNED FUNDS (NOF) as per the last audited financial statement of the Company. What is the Duration of Deposit in Nidhi Company Registration?The deposits shall be accepted for a minimum period of 6 months and a maximum period of 5 years. The Company can accept deposits like Banks/NBFCs, of which the maximum period of deposit is five years. Still, a company can renew the same for the next five years based on the choice of the investor. Recurring Deposits will be accepted for a minimum period of 12 months and a maximum period of5 years. Recurring deposit is a perfect tool that is mostly used by the Nidhi Companies to increase the deposit amount and funds, and hence the same as fixed deposits, and its maturity time is five years. When the Recurring deposit is mature or closed, the money of that deposit is automatically moved to the regular savings account. The Company can again offer the recurring account facility to the same member, and the amount collected of recurring deposits will be capitalized in fixed deposit as bulk money on the customers choice. Therefore, it is a sales promotion idea for the Nidhi company. What is the Rate of Interest on Fixed Deposits and Recurring Deposit?The Rate of Interest that can be offered on Fixed and Recurring Deposit should not surpass the maximum rate of interest arranged by RBI, which the NBFC offer on the deposits. The Maximum interest rate offered on Fixed Deposits and the Recurring deposit will continuously be fluctuating, and it is at all times essential to look at the RBI policies for the Interest rate. Whatsoever RBI decides for NBFC about the rate of interest. The same will be applied directly to the Nidhi companies. ConclusionNidhi Company works on the concept of mutual benefit. It is easy to form Nidhi Company as it does not require to receive a license from the Reserve Bank of India. It accepts deposits from the members and lends the money only to its members. For any assistance regarding Nidhi Company Registration, feel free to reach us at Corpbiz.
3 Comments
9/8/2021 09:53:09 pm
Very delighted to come across this useful article. Memorandum of Association is a fundamental document for the formation of a company. It is a charter of the company. Without memorandum, a company cannot be incorporated. The memorandum together with Articles of Association forms the constitution of the company. Since I have gone through your blog and found it informative, I would be glad if you visit my blog and share your valuable comments : https://bit.ly/3naPVTf
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2/27/2024 11:43:50 am
Registering a company involves the formal process of establishing a legal entity with a governing authority, typically a government agency. This entails selecting a business structure, choosing a name, completing necessary forms, and paying associated fees. Additionally, businesses may need licenses, permits, and tax identification numbers based on their location and industry. Proper registration ensures legal recognition and compliance with regulatory requirements, providing a foundation for transparent and effective business operations.
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