A Nidhi Limited Company is a part of NBFC type of company and it also known as benefit funds or mutual benefit company. As these Companies are identical to a Non Banking Financial Company (NBFc), their activities are under the administration of Reserve Bank of India. It is a very popular lending mechanism for secured loans, and the operations of it very similar to the co-operative society.
The primary objective of Nidhi companies includes making a habit of thrift and saving amongst its members and the services of members. It is very important for financial type of business like Gold Loan, Silver Loan, Loan against Property (Mortgage Loan) and Small loans for business & Micro Finance. The procedure of nidhi company registration is quite easy and it does not require any RBI approval for that kind of company registration.
Key Points of Nidhi Company Formation
The following points are important to register a nidhi limited company under Nidhi Rules, 2014.
- A Nidhi company registered under the Companies Act, 2013.
- It works on the principle of nidhi benefits that are regulated by the Ministry of Corporate Affairs.
- Nidhi Company is a class of Non-Banking Financial Company has powers to issue directives for them related to their deposit acceptance activities.
- Nidhi Company only deal their shareholder-members
- Unencumbered term deposits must be 10% or higher of the outstanding deposits
- The ratio of net owned fund to deposits of not more than 1:20
- Net owned funds of nidhi finance company Rs 10 lakhs or more
Requirements of Nidhi Company Registration
Although process of a nidhi company registration is easy yet and support from a professional is recommended for filing difficult forms within proper deadline. There are following documents are required for nidhi finance company registration.
Documents are needed
- PAN CARD of Directors and Shareholders
- ID PROOF of Directors and Shareholders
- BANK STATEMENT
- PASSPORT SIZE PHOTO
- REGISTERED OFFICE PROOF
Get Professionals experts are there to incorporate your nidhi limited company online and continue its operation effortlessly. Nidhi Company cannot remit any type of incentive or brokerage in order to promote grant of loan or mobilization of deposits to members. Now you can apply for nidhi company license after fulfill above documents and process done.
