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WHAT ARE THE REQUIREMENT FOR REGISTRATION OF NIDHI COMPANY IN BANGALORE?

NIDHI COMPANY REGISTRATION ONLINE in Bangalore, ensure a minimum of seven shareholders and three directors, all Indian citizens. Choose a unique company name complying with the Companies Act, 2013. {Nidhi company register online} {Nidhi company example} {how to apply for Nidhi company Submit the Memorandum of Association (MOA) and Articles of Association (AOA), provide the registered office address within 15 days, and meet any applicable capital requirement. Directors must obtain a Director Identification Number (DIN) and a Digital Signature Certificate (DSC). Apply online through the Ministry of Corporate Affairs (MCA) portal for RoC approval and receive the Certificate of Incorporation. Adhere to Nidhi Rules for compliance. Visitofficialwebsite

Eligibility Criteria in NIDHI COMPANY REGISTRATION ONLINE

Before initiating the registration process, it’s essential to ensure that your company meets the eligibility criteria established by the Companies Act, 2013 for Nidhi Companies:

  • Minimum Members: A Nidhi Company should have at least 200 members within a year of its incorporation.

  • Minimum Capital Requirement: The company should have a minimum paid-up equity share capital of Rs. 5 lakhs.

  • No Preference Shares: Nidhi Companies are not permitted to issue preference shares.

  • Object Clause: The primary objective of a Nidhi Company should be the cultivation of thrift and savings among its members, accepting deposits from them, and lending to them for their mutual benefit. Nidhi company registration online 

documents required to register nidhi company

Registering a Nidhi Company in India requires the submission of various documents and information to the Registrar of Companies (RoC) in compliance with the Companies Act, 2013, and the Nidhi Rules, 2014. Here is a list of essential documents and information required for registering a Nidhi Company:

  1. Digital Signature Certificates (DSCs):

    • DSCs are required for all proposed directors and the Chief Executive Officer (CEO). DSCs are necessary for filing online applications with the Registrar of Companies (RoC).
 

2. Director Identification Number (DIN):

 

3. Memorandum of Association (MoA) and Articles of Association (AoA):

    • Draft the MoA and AoA for your Nidhi Company. These documents detail the company’s objectives, rules, and regulations and must be in compliance with the Nidhi Rules, 2014, and the Companies Act, 2013.
 

4. Proof of Registered Office Address:

    • Provide proof of the registered office address, such as a rent agreement, lease deed, or a utility bill. The registered office should be located within the jurisdiction of the respective Registrar of Companies (RoC).
 

5. Board Resolution:

    • A certified copy of the board resolution declaring the intent to establish a Nidhi Company and authorizing directors to file the incorporation documents.
 

6. Declaration by Directors:

    • A declaration from all directors confirming their intent to comply with the Nidhi Rules and Regulations, along with other legal requirements. Nidhi company registration online 
 

7. Permanent Account Number (PAN) and Aadhar Card of Directors:

    • Copies of PAN and Aadhar cards of all directors.
 

8. Passport-sized Photographs:

    • Recent passport-sized photographs of all directors and the CEO.
 

9. Registered Office Verification:

    • Verification of the registered office address is necessary. This may involve an inspection by the RoC.
 

10. Subscription Money Proof:

    • Proof of the initial capital contribution by the promoters in the company’s bank account. The minimum paid-up share capital should be Rs. 5 lakhs, as mentioned in the MoA. Nidhi company registration online 

Directors and Management:

  • Directors: A Nidhi Company must have a minimum of three directors, with at least two-thirds of them being individuals. Each director should possess a Director Identification Number (DIN).

  • Board Meetings: The company is required to hold a minimum of four board meetings in a year, with an interval of no more than 120 days between two consecutive meetings.

  • Appointment of CEO: A Nidhi Company is required to appoint a Chief Executive Officer (CEO), who should be one of the directors.

  • Nidhi company registration online 

Nidhi company register online

Nidhi Company online, you should check the official website of the Ministry of Corporate Affairs (MCA) or the relevant regulatory authority in your country. The process and requirements may vary depending on your location. Nidhi company registration online 

In general, here are the typical steps involved in registering a Nidhi Company in India:

  1. Digital Signature Certificate (DSC): Obtain a DSC for the proposed directors of the company.

  2. Director Identification Number (DIN): Apply for DIN for the proposed directors. This can be done online.

  3. Name Approval: Apply for the approval of the company’s name through the MCA portal.

  4. Incorporation Application: Once the name is approved, submit the incorporation application along with the necessary documents, including the company’s MOA (Memorandum of Association) and AOA (Articles of Association).

  5. Certificate of Incorporation: Once the Registrar of Companies (RoC) is satisfied with the documents, they will issue a Certificate of Incorporation.

  6. PAN and TAN: After obtaining the Certificate of Incorporation, apply for the company’s Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN).

  7. Bank Account: Open a bank account in the name of the company.

Registration Application

Submit the application for the registration of your Nidhi Company to the Registrar of Companies (RoC). The application should include the following documents and information:

  • MoA and AoA
  • Names, addresses, and PAN cards of the directors
  • Address of the registered office
  • Declaration by the directors confirming that the company will comply with all Nidhi Company rules
    • Statement of accounts and financial projections Nidhi company registration online 

Nidhi Company Example

  • Saralseed Nidhi Limited in Delhi.
  • Shree Maa Chanderbadni Mahila Sahyog Samiti Nidhi Limited in Delhi.
  • Suryodaya Urban Nidhi Limited in Maharashtra.
  • Unifirst Mutual Benefit Nidhi Limited in Maharashtra.
  • Shubharambh Urban Multiple Nidhi Limited in Maharashtra.

Nidhi Company Rules Compliance:

Nidhi Companies are required to adhere to various regulations under the Nidhi Rules, 2014. These rules include:

  • Deposits: Nidhi Companies can accept deposits only from their members.

  • Lending: They can lend only to their members.

  • Interest Rates: The interest rate charged on loans should not exceed 7.5% above the highest rate offered on deposits.

  • Reserve Fund: At least 20% of profits must be transferred to a reserve fund until it reaches 10% of the outstanding deposits.

  • Fixed Deposits: Nidhi Companies are prohibited from offering fixed deposit schemes.

  • Membership: Membership of Nidhi Companies is restricted to individuals and entities specified in the Nidhi Rules.

How can I start a nidhi limited company? Kindly provide me details.

Nidhi Company is a type of Non-Banking Financial Company (NBFC). It is formed to borrow and lend money to its members. It inculcates the habit of saving among its members and works on the principle of mutual benefit. These companies typically operate in the southern part of the country.

Nidhi Company isn’t required to receive the license from Reserve Bank of India (RBI), hence it is easy to form.

It is registered as a public company and should have “Nidhi Limited” as the last words of its name.

Activities Prohibited in a Nidhi Company

Nidhi Company can’t deal with chit funds, hire-purchase finance, leasing finance, insurance or securities business. It is strictly prohibited from accepting deposits from or lending funds to, any other person except members.

Also, it can’t advertise itself to ask for any deposits. Nidhi company registration online 

Number of members

Minimum of seven members is required to start a Nidhi Company out of which three members must be the directors of the company.

Share Capital and Owners’ Funds

A minimum of 5 lakh rupees, is required as the equity share capital to start a Nidhi Company. Nidhi Company can’t issue preference shares.

Documents required for registration

Proof of the registered place of business (Ownership documents/ rent or lease agreement)

No Objection Certificate (signed by the owner/ landlord)

Identity proofs

Address proofs of the members

Photos of the members

PAN card copies of the members

Digital Signature (DSC)

Director Identification Number (DIN) of the directors

Memorandum of Association of the company (MoA)

Articles of Association of the company (AoA)

Only one object will be mentioned in MoA of the company: “cultivating the habit of thrift and savings amongst its members, receiving deposits from, and lending to, its members only, for their mutual benefit..”

Conditions to be fulfilled for getting ‘Nidhi’ status

Within one year of its registration Nidhi company registration online 

  1. Nidhi Company should have minimum 200 members within one year from commencement
  2. Also, the net owned funds should be 10 lakh rupees or more. Net owned funds = Equity share capital + free reserves (-) accumulated losses (-) intangible assets
  3. Unencumbered term deposits must be 10% or higher of the outstanding deposits
  4. The ratio of net owned funds to deposits shouldn’t be more than 1:20

If Nidhi Company satisfies all above conditions, it should file NDH-1 along with prescribed fees within 90 days from the end of the first financial year after incorporation. The form must be duly certified by practicing CA/ CS/ CWA.

Extension of another financial year can be availed upon submission of NDH-2 to the Regional Director within 30 days from the end of the first financial year.

If even after the second financial year, it doesn’t fulfill the requirements, it can’t accept deposits till it complies with the provisions, and also penalty will be imposed.

NIDHI COMPANY REGISTRATION | NIDHI COMPANY REGISTER ONLINE | NIDHI COMPANY EXAMPLE | HOW TO APPLY FOR NIDHI COMPANY | BENEFITS OF NIDHI COMPANY

How to apply for Nidhi Company

Step 1: Applying for DIN and DSC.

Step 2: Name Approval. 

Step 3: MoA & AoA. 

Step 4: Certificate of Incorporation (CIN) 

Step 5: PAN, TAN and Bank Account.

What is the approval process for Nidhi

The directors must submit an application for registration including the Memorandum of Association (MOA) and Articles of Association (AOA) as soon as the name is authorized. The appropriate government needs 15 to 20 days to provide a certificate of establishment for a Nidhi company registration online 

What are the conditions for Nidhi

Conditions or requirements that must be met to make a Nidhi Company profitable: Within a year following its initial registration. Nidhi Company should have at least 200 members within one year of its inception. Furthermore, the net held funds should be worth at least 10 lakh rupees 

What is the minimum capital of a Nidhi Company

Such company shall have minimum paid up equity share capital of ten lakh rupees. Every Nidhi Company shall have not less than Two hundred Members. Every Such Company shall have Net Owned Funds of Twenty Lakh Rupees 

Conclusion of nidhi company

Nidhi company registration online  in Bangalore, as in any other part of India, involves a structured and legally compliant process. It’s crucial to adhere to all the requirements of the Companies Act, 2013, and the Nidhi Rules, 2014, and to maintain ongoing compliance with regulatory authorities. Consulting with a legal or financial advisor experienced in Nidhi Company registrations can be beneficial to ensure full compliance with all requirements and to navigate the complex legal framework for Nidhi Companies. This comprehensive guide provides a general overview of the requirements for registering a Nidhi Company in Bangalore, but specific details may vary based on the company’s unique circumstances and the evolving regulatory landscape

how auriga accounting help you to register nidhi company

Auriga Accounting is a financial services firm that can assist you with the registration of a Nidhi Company in Bangalore, making the registration process smoother and ensuring that your Nidhi Company complies with all legal and regulatory requirements. Here’s how Auriga Accounting can help you with the registration of a Nidhi company registration online 

  1. Expert Guidance:

    • Auriga Accounting has a team of professionals with expertise in company registration, compliance, and financial services. They can provide expert guidance throughout the registration process, ensuring you understand the legal requirements and steps involved.
 

2. Document Preparation:

    • Auriga Accounting can assist you in preparing all the necessary documents required for Nidhi Company registration. This includes drafting the Memorandum of Association (MoA), Articles of Association (AoA), and other legal documents to ensure compliance with the Nidhi Rules and the Companies Act, 2013.
 

3. Digital Signature Certificates (DSCs) and Director Identification Numbers (DINs):

    • Auriga can help you obtain DSCs for the directors and guide you through the process of applying for DINs, which are essential for company registration.
 

4. Company Name Reservation:

    • They can assist you in selecting a unique and suitable name for your Nidhi Company and check its availability with the Ministry of Corporate Affairs (MCA).
 

5. Registration Application:

    • Auriga Accounting can prepare and file the registration application with the Registrar of Companies (RoC) on your behalf. This includes submitting all the required documents and information in compliance with the Companies Act and Nidhi Rules.
 

6. Compliance with Nidhi Rules:

    • They ensure that your company’s operations, objectives, and documents align with the Nidhi Rules and Regulations, as specified by the regulatory authorities.
 

7. Address Verification:

    • Auriga can assist in verifying the registered office address and provide the necessary documentation to comply with this requirement.
 

8. Financial Compliance:

    • They can help you set up the initial capital requirement of at least Rs. 5 lakhs, ensuring it is deposited in the company’s bank account.
 

9. Ongoing Compliance and Reporting:

    • After registration, they can assist you with ongoing compliance, including annual financial audits, filing of returns, and maintaining statutory records as per regulatory requirements.
 

10. Tax Registration:

    • Guidance and assistance in obtaining Permanent Account Numbers (PAN) and Tax Deduction and Collection Account Numbers (TAN) for your company.
 

11. Legal Support:

    • If any legal issues or challenges arise during the registration process, Auriga Accounting can provide legal support and guidance to help resolve these matters.
 

12. Regulatory Updates:

    • Auriga stays updated with the latest regulatory changes and can provide guidance on how to adapt to any new rules or requirements that may affect Nidhi Companies.
June 17, 2024

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