You should know the checklist for Nidhi Company Registration if you're planning to register your firm as a Nidhi Company. Typically, a Nidhi Company is a form of Non-Banking Financial Company which is built to borrow and lend money to its members. It instills the habit of saving money among its members.
Nidhi Company works on the principle of mutual benefit. Generally, such companies operate in southern India. The best part of registering your company as Nidhi Company is that you don't need to obtain the license from Reserve Bank of India (RBI). You can register it as a public company and must include 'Nidhi Limited' as the last word of the name.
So, basically, in this blog, we are going to discuss the things required for Nidhi Company Registration. The topics covered are as follows:
· Documents required for Nidhi Company Registration
· Minimum requirements for Nidhi Company Registration in India
· Points to consider while selecting the name for Nidhi Company
· Condition after obtaining Nidhi Company Registration
Documents required for Nidhi Company Registration
For obtaining online Nidhi Company Registration, you are supposed to gather the following documents:
· Proof of the registered office that could be ownership documents or rent or lease agreement;
· No-Objection Certificate (NOC) from the landlord;
· Photos of all the members;
· Identity proofs of the members;
· Copies of PAN card of all the members;
· Digital Signature Certificate (DSC) of all the directors and shareholders;
· A copy of address proof of all the members;
· DIN (Director Identification Number) of the directors;
· A copy of Memorandum of Association (MoA) of the company;
· A copy of the Articles of Association (AoA) of the company.
Minimum requirements for Nidhi Company Registration in India
1. There should be a minimum of 7 shareholders in the company;
2. There must be at least 3 directors of the company;
3. A minimum of Rs. 5 lakhs is required as the equity share capital;
4. Nidhi Company cannot issue preference shares. In case, it’s already issued, shares need to be redeemed in accordance with the terms of the issue of such shares.
Points to ponder while selecting a name for Nidhi Company registration
One of the most important things we have to consider while Nidhi Company Registration is choosing the company name. You must keep the company name according to the guidelines of MCA, and it should be meaningful and something that adds value to the brand. Below you can find a list of points to consider while selecting the company's name:
· Ensure that the company's name is concise and easy. Often, complicated names aren't easy to remember. Make sure that the name adds value to the business.
· Every Nidhi Company name must end with the name 'Nidhi Limited.'
· The company name should be unique, and must not match with any existing company in a similar class.
· The name must portray relevancy. It must sound meaningful and add values to the brand.
· The company name should be such that it doesn't appear offensive to anybody. The proposed name shouldn't seem to insult any religion or group by any means.
· The name must be selected as per the provisions of Emblems and Names (Prevention of Improper use) Act, 1950. And it must also not violate any other law.
Condition after obtaining Nidhi Company Registration
Once you have completed one year of Nidhi Company Registration, the applicant is required to ascertain that they meet the following requirements:
1. The Net Owned Fund after one year of registration shall not be less than Rs. 10 lakh;
2. The minimum number of shareholders should be 200;
3. The ratio of net owned funds to deposits must not be more than 1:20;
4. Unencumbered term deposits must be equal to or higher than 10% of the outstanding deposits.
Hence, these are all required for Nidhi Company Registration. So now if you wish to register your firm as Nidhi Company or have any concern regarding the registration process, then contact Enterslice, one of the best company registration consultants.