Nidhi Company Services In Ujjain

A Nidhi Company is a type of company in the Indian non-banking finance sector, recognized under section 406 of the Companies Act, 2013. Their core business is borrowing and lending money between their members. It is also considered as alternate for financing business. Nidhi Company is a close substitute for credit co-operative society. They are also known as Permanent Fund, Benefit Funds, Mutual Benefit Funds and Mutual Benefit Company. They are regulated by Ministry of Corporate Affairs. Reserve Bank of India is empowered to issue directions to them in matters relating to their deposit acceptance activities.

Nidhi means a company which has been incorporated with the object of developing the habit of thrift and reserve funds amongst its members and also receiving deposits and lending to its members only for their mutual benefit. Nidhi Company does not require a license of Reserve Bank of India. Nidhi companies are more popular in South India, and 80% of Nidhi companies are located in Tamil Nadu.

Breakeven Advisory, your trusted legal advisor, provides a cost-effective Nidhi company registration service in Madhya Pradesh. You may learn how to register your business here. Breakeven Advisory will take care of all legal formalities and fulfill the compliances, as defined by the Ministry of Corporate Affairs.

Nidhi companies are governed under the Nidhi Rules, 2014. The Central Government is the regulating authority controlling its activities and operating. Guidelines imposed by the RBI on Nidhis are very few.

Nidhi companies enjoy better credibility as opposed to any other members based organizations like Trusts, Cooperative Societies or NGOs.

The main purpose of Nidhi Company’s incorporation is to encourage the habit of saving among the members of the Company. This is how it achieves the other goal of its registration of being mutually beneficial. The Nidhi Companies are to lend and borrow money to and from its shareholders/members only.

Nidhi Companies play an important role in meeting the needs of lower and middle-income groups by providing them financial help without complex formalities and documentation.

Ministry of Corporate Affairs (MCA) commands that the minimum capital requirement of Rs. 5 lakhs for Nidhi. And, within 1-year, the capital has to be raised to at least Rs. 10 lakhs. The Fees, DIN, DSC & Other Expenses are approx. Rs. 30,000. These include Government fees that differ from State to State.

1. Minimum 7 shareholders are required.

2. Minimum of 3 directors is required.

3. A minimum share capital of Rs. 5 lakhs is required.

4. Digital signature certificate (DSC) of all of the directors is required with copies of identity and address proof.

5. Two names to be suggested for approval from which one may be approved on basis of availability.

6. Main object clause of the company means the proposed business to be carried out by the company.

7. Proof of registered office like NOC from owner, electricity bill, rent agreement or lease deed.

8. Main objects should consist of finance activity among its members.

The Income Tax provisions w.r.t. a Nidhi Company and a normal Company are the same regarding corporate tax and tax deducted at source also. The Director shall be a member of Nidhi. Therefore, it is mandatory for the director of Nidhi Company to hold shares. Nidhi companies are governed under The Companies (Nidhi Rules) 2014. Ministry of Corporate Affairs through the Regional Director is the regulatory authority controlling its activities and operating. Reserve Bank of India is empowered to issue directions to them in matters relating to their deposit acceptance activities.