What is Nidhi Company? Complete Registration Process
Obtain your Nidhi Company Registration efficiently with Adviso at your convenience.
Nidhi Company Registration is recognised under section 406 of the Companies Act 2013. A Nidhi Company refers to a venture in the non-banking Finance sector. The primary business function of a Nidhi company is to borrow and lend funds to the members of the company. Based on the operation of the Nidhi company, it is also known as a mutual benefit fund company, mutual benefit or benefit fund, or permanent fund company. Nidhi Company is governed in India by the MCA (Ministry of Corporate Affairs), and it has the total governing authority over any regulations related to the deposit and acceptance of the Nidhi Company.
Nidhi Company is based on the objective of thrift and savings amongst its members. Concerning the popularity of Nidhi Company, Nidhi Company Registration is relatively more popular in South India than in North India. In this write-up, we will study the requirements, characteristics, Advantages, documents required, and the incorporation process of a Nidhi Company.
Requirements of Nidhi Company Registration
The governing authority sets up the requirement of a Nidhi Company Registration from the Ministry of Corporate Affairs. The requirements are stated as follows:
- Minimum number of members - There must be at least seven members, among which three members should be the proposed directors of the company
2. Minimum number of Shareholders - The company should have not less than 200 shareholders.
3. The minimum amount of equity capital Minimum number of Shareholders - The equity share capital of a Nidhi company should be at least 10 lacs and after four months it should be 20 lacs.
4. The ratio of net owned fund to company deposit - The ratio of the net fund to the company's deposit should not exceed 1:20.
5. Name - The Nidhi company is required to have a “limited company” tagged along with its name as per the Companies Act 2013.
6. Memorandum of Association (MOA) - In the memorandum of association of the Nidhi company, the company’s objectives are to instill the habit of thrift and saving among the members of the company.
Why Adviso?
Nidhi Company Registration involves requirements, document preparation, and pre- and post-compliance obligations. It is essential to comply with the specific terms of the Ministry of Corporate Affairs (MCA). The Nidhi Company Registration can be a tedious process without professional support. That’s where the Adviso comes in.
At Adviso, we provide expert services for online company registration on the MCA website. Our Lawyers, CA, and CS experts will be there throughout the journey to ensure your company lists smoothly and efficiently.
With Adviso's expertise and assistance, you can easily navigate the complexities of company registration, saving time and ensuring compliance with all necessary regulations.
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