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

YOU NEED TO KNOW REQUIREMENT FOR REGISTRATION OF NIDHI COMPANY IN PUNE?

introduction of nidhi company

A Nidhi Company is a unique type of non-banking financial company (NBFC) in India that primarily focuses on cultivating the habit of thrift and savings among its members. Nidhi Companies are formed for the purpose of facilitating lending and borrowing money within a closed group of individuals, often referred to as “members.” These companies are an essential part of the informal credit system in India and play a significant role in catering to the financial needs of small and medium-sized savers and borrowers.Visitofficialwebsite 

Minimum Requirements for Nidhi Company Registration:

a. Minimum Capital Requirement:
  1. Minimum Paid-up Capital: To register a Nidhi Company in Pune, you need a minimum paid-up equity share capital of Rs. 5 lakhs. This capital is necessary to establish and operate the company.

  2. Minimum Number of Members: You must have at least 200 members at the time of registration. These members must be real individuals, and artificial persons cannot be included.

  3. Minimum Number of Directors: You must have at least 3 directors to form the board of directors for your Nidhi Company.

b. Eligibility Criteria:
  1. Residency: All members and directors must be residents of India.

  2. Age: Members and directors should be of legal age (18 years or older).

  3. Financial Stability: Members should have a certain level of financial stability to be eligible for membership.

Document Requirements:

a. Documents for Directors and Members:
  1. Aadhar Card: The Aadhar card is mandatory for all members and directors.

  2. PAN Card: PAN (Permanent Account Number) card is also required for all members and directors.

  3. Proof of Residence: Documents like utility bills, passport, or voter ID can be used as proof of residence.

  4. Passport-sized Photographs: Recent passport-sized photographs are needed for all members and directors.

b. Registered Office Address Proof:

You must provide proof of a registered office for your Nidhi Company. This can include:

  • Ownership Proof: If you own the premises, you can provide a property document.

  • Rental Agreement: If you’re renting, a rental agreement along with a NOC (No Objection Certificate) from the landlord is necessary.

  • Utility Bill: A utility bill in the name of the premises owner is also required.

Can any person join a nidhi company

Nidhi Company is a non-banking financial business structure. Nidhi Company performs the functions of lending and borrowing money within its members where it works through its members only. Nidhi Company is also called a mutual benefit company. A person can be a part of a Nidhi company by being one of the directors or being a customer, You can use its services only if you purchase at least one share of the company.

What is the minimum requirement to the registration of a Nidhi company

A Nidhi Company is a type of Non-Banking Financial Company (NBFC) in India that primarily deals with accepting deposits and lending money to its members. To register a Nidhi Company, you must meet the following minimum requirements:

  1. Incorporation: Register the company as a public limited company under the Companies Act, 2013 with the Ministry of Corporate Affairs (MCA).
 

2. Unique name: Choose a unique name for the company that includes the word “Nidhi Limited” as part of its name.

 

3. Minimum capital: The company must have a minimum paid-up equity share capital of INR 5 lakhs (approximately $6,700).

 

4. Minimum members: A Nidhi Company must have at least seven members (shareholders) and three directors at the time of incorporation.

 

5. Resident directors: All directors must be Indian residents.

 

6. DIN (Director Identification Number): Each director must have a valid DIN.

 

7. DSC (Digital Signature Certificate): Obtain a DSC for each director, which is required for signing electronic documents.

 

8. MOA (Memorandum of Association) and AOA (Articles of Association): Draft the MOA, which outlines the company’s objectives, and the AOA, which contains the rules and regulations governing the company’s operations.

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Registration Procedure

a. Name Reservation:

You need to apply for name reservation through the Ministry of Corporate Affairs (MCA). The name should include “Nidhi Limited” at the end to denote the type of company. The name should be unique and not similar to any existing company.

b. Incorporation Application:

Once the name is approved, you should file an application for the incorporation of the company. This involves submitting various documents, including the Memorandum of Association and Articles of Association, with the MCA.

c. Obtaining Certificate of Incorporation:

After the MCA reviews your application and documents, and they are found to be in order, a Certificate of Incorporation is issued. This certifies the formation of your Nidhi Company.

d. Apply for PAN and TAN:

Once you have the Certificate of Incorporation, you can apply for a PAN (Permanent Account Number) and TAN (Tax Deduction and Collection Account Number) for your Nidhi Company.

e. Commence Business:

After obtaining the Certificate of Incorporation and PAN/TAN, you can officially commence your Nidhi Company’s business operations.

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.

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

  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.

Post Registration Compliance:

a. RBI Registration:

Nidhi Companies need to be registered with the Reserve Bank of India (RBI) as per the RBI rules and guidelines. You must comply with RBI requirements to conduct lending and borrowing activities.

b. Regular Filing and Compliance:
  • Annual Returns: You are required to file annual returns with the Registrar of Companies (RoC) in the prescribed format.

  • Auditing: Regular auditing of your company’s accounts is mandatory.

  • Nidhi Rules Compliance: Ensure that your company complies with the Nidhi Rules, 2014, including the rules regarding lending and borrowing limits, membership, and other operational aspects.

  • Meeting Requirements: Hold annual general meetings and other meetings as per company law requirements.

  • Maintain Statutory Registers: Maintain and update statutory registers as required by company law.

  • Financial Reporting: Prepare and submit financial statements as per the Companies Act.

Pune-Specific Requirements:

Pune, like any other city in India, may have specific requirements or additional compliances. It’s important to check with the local authorities and the Registrar of Companies in Pune to ensure that you meet any city-specific obligations.

Conclusion of nidhi company

Starting and operating a Nidhi Company in Pune, or any part of India, requires careful adherence to the Companies Act, Nidhi Rules, and RBI regulations. Meeting the minimum capital, eligibility, and documentation requirements is essential. Moreover, post-registration compliance is equally important to maintain the company’s legal standing and credibility. Always consider seeking professional assistance to navigate the intricate legal and financial aspects of operating a Nidhi Company in Pune or any other location in India.

how auriga accounting help you to register nidhi company in pune

Auriga Accounting is a professional service provider that can offer valuable assistance in registering a Nidhi Company in Pune or any other location in India. They have expertise in financial and legal matters and can guide you through the complex process of Nidhi Company registration. Here’s how Auriga Accounting can help you:

  1. Understanding the Legal Requirements: Auriga Accounting professionals have a comprehensive understanding of the legal and regulatory requirements for Nidhi Company registration in Pune. They can explain the prerequisites and criteria you need to meet to ensure that you have a clear understanding of the process.

  2. Name Reservation: They can assist you in selecting and reserving an appropriate company name, ensuring that it complies with the naming guidelines set by the Ministry of Corporate Affairs (MCA).

  3. Document Preparation and Verification: Auriga Accounting can help you prepare and verify the necessary documents, including the Memorandum of Association, Articles of Association, and other documentation required for the registration process.

  4. Filing and Application Submission: They can manage the submission of your application for Nidhi Company registration with the Registrar of Companies (RoC). This involves submitting the required documents and paying the necessary government fees.

  5. Liaison with Government Authorities: Auriga Accounting can act as your liaison with government authorities, such as the RoC and the Ministry of Corporate Affairs, to ensure a smooth and efficient registration process.

  6. Compliance with Nidhi Rules and Regulations: They will ensure that your Nidhi Company adheres to all the rules and regulations set forth by the Nidhi Rules, 2014, and other relevant laws and guidelines. Compliance is essential to avoid legal issues in the future.

  7. RBI Registration: If required, Auriga Accounting can assist with the registration of your Nidhi Company with the Reserve Bank of India (RBI), as Nidhi Companies need to comply with RBI regulations.

  8. Post-Registration Compliance: They can provide ongoing support for your company’s compliance requirements, including filing annual returns, conducting audits, and managing statutory registers as mandated by the Companies Act.

  9. Local Expertise: Auriga Accounting has a presence in Pune and is familiar with any city-specific requirements or regulations, ensuring that your Nidhi Company complies with local obligations.

  10. Professional Advice: Auriga Accounting’s team of experts can offer professional advice on financial management, taxation, and other financial aspects of running a Nidhi Company.

  11. Efficiency and Time-Saving: Utilizing their services can save you time and effort, as they have the experience and knowledge to navigate the complexities of the registration process efficiently.

  12. Reduced Risk: With professional guidance from Auriga Accounting, you can minimize the risk of errors or non-compliance, which could lead to legal issues in the future.

June 19, 2024

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