A Nidhi company is one type of Non-Banking Financial Company (NBFC). It is defined under section 406 of the Companies Act, 2013 & it is governed by Nidhi Rules 2014. Thus, they have to fulfill 2 types of norms as Nidhi company are incorporated in the nature of Public Limited Company as defined under section 406 of the Companies Act, 2013 & other is Nidhi Rules 2014.
Generally, a Nidhi Company is incorporated with a motive of receiving deposits or lending funds only to its members for their communal benefits & also to enlighten the habit of savings among its members. Such type of financial company does not require any RBI approval or RBI license. However, RBI can provide guidelines on any matters relating to lending or deposit from members.
A Nidhi Company with the help of G K Legal Solutions can be registered within 15-20 Working days only, subject to client document submission & Government processing time.
Benefits of Nidhi Company:
A Nidhi Company having no outer participation accepts deposits from its members & provides loans to its members at very lower interest rates that too at a normal documentation & formalities.
These types of companies look for promoting a good habit of making savings & prudence among their respective members & work for giving benefits to both depositors & borrowers.
They accept term deposits from its members for timely & secured returns which in turn provide easy & convenient loans to its members against a variety of collaterals such as jewelry; FD receipts, NSCs & Government securities. The repayment periods are from 1 year to 7 years that too at very lower rates.
Nidhi Company is registered & managed by the Ministry of Corporate Affairs (MCA). A Nidhi Company enjoys a better Creditability as compared to any other Member Based or Mutual Benefits organizations.
- Enjoys Uninterrupted Existence:
A Nidhi Company enjoys an uninterrupted existence which means a director can be easily be removed or added by filing a simple form with the Registrar of the companies because The Board of the Management of Nidhi company controls activities of a Nidhi company.
Documents required for Nidhi Company Registering:
From all the Directors & Shareholders:
- Self-attested copy of Aadhaar Card / Passport.
- Self-attested copy of PAN Card.
- Scanned copy of latest Bank Statement / Utility Bill (Telephone Bill/ Electricity Bills).
- Scanned Copy of Rent Agreement (If Rented).
- Scanned Copy of NOC.
For Registered Business premises:
- Scanned Copy of Electricity Bill.
- Scanned Copy of Rented Agreement (If Rented Premises)