Nidhi Company is a type of business model prevalent in India which is governed under the Companies Act of 2013. Its sole objective is to engage with thrift as well as savings among its members. A Nidhi is a Non-Banking Financial Institute that exclusively provides services like lending and deposits to its members. Therefore, one can assess that a Nidhi in India only arranges funding from its members and shareholders.
Starting a Nidhi in India means starting a Non-Banking Financial Companies class. The RBI governs them. The Apex Bank instructs the registered Nidhi guidelines about the accepted lending as well as depositing habits in the commercial sphere. However, Nidhis can operate within its member circle. And therefore, outsiders are not allowed.
Why register your Lending business as a Nidhi Company?
A registered Nidhi enjoys several perks as a company. We have mentioned some of the perks that make registering and operating a Nidhi quite a beneficial affair:
A Nidhi can easily avail of loans
As a recognized business model, a Nidhi offers a particular infrastructure to the businessman as directed by the Central government. As a result, some people trust it more than banks. Therefore, once a Nidhi is registered, it becomes easy for the Director(s) to acquire loans and other fundings.
A Nidhi can perpetually exist
A Nidhi can operate even after one of the director(s) expires or leaves the company.
Nidhi Incorporation is hassle-free
One can incorporate a Nidhi Company in a simple, straightforward manner. You just have to follow the required standard procedure for any Company Registration in India.
A Nidhi is a separate Identity from its members
After forming a Nidhi, it becomes and can behave like a separate legal identity in India. Therefore, it means that a Nidhi becomes a separate individual.
Member’s liability limited to their shares
A Nidhi Company extends limited liability to its members, i.e., the member partners are not liable for any losses incurred by a Nidhi Company during its operations.
Pre-conditions for Nidhi Company Registration
Before applying for the Nidhi registration with the MCA, the applicant must observe the following pre-conditions:
Nidhi Company Registration process
The step-by-step procedure for online Nidhi company registration in India is enumerated in the following points:
Choosing a unique Name
Firstly, conduct a name search for your Nidhi company. You can also hire Nidhi experts for Nidhi Company name suggestions.
Reserve the chosen Name
Then, reserve the chosen Name of the to-be-registered company using the RUN application on the official MCA website.
DSCs and DINs
Also, register for and obtain the required Digital Signature Certificates and Director Identification Numbers for each of the directors of the applicant company
MoA and AoA
Draft the Memorandum of Association (MoA) as well as the Articles of Association (AoA) for the to-be-incorporated company.
Finally, tha applicant will file the registration application online and submit it with the furnished documents for Nidhi incorporation.
The MCA, upon reception of the application, will assess it. Hence, upon successful verification and the MCA’s satisfaction with the proposed candidature of the applicant, the Ministry will issue the Certificate of Incorporation for your desired Nidhi.
Attachments of Nidhi Company Registration application
The applicant must submit the following documents along with the Nidhi registration application for each director/ shareholder:
Easy Incorporation of Nidhi with Registrationwala
We at Registrationwala provide end-to-end solutions for Nidhi company registration with the help of our Nidhi registration consultant. Our services entail the following steps:
Therefore, through Nidhi Incorporation, you can start your own mutual fund business and if it is what you want to do, then contact Registrationwala at site:www.registrationwala.com and let us handle online Nidhi Registration.