Nidhi Company register
To begin the chapter on Nidhi registration, you first need to know what a Nidhi company is. Unlike any other organization, Nidhi is a type of organization in the Indian non-banking finance sector, that is recognized under section 406 companies Act, 2013. If you are also willing to get Nidhi registration done for your organization, continue reading further. In this article, you get answers to the most common questions that make Nidhi registration a complicated process.
If you are willing to own a Nidhi organization, it is mandatory that you get your company registered. Therefore by registering a Nidhi company, a Nidhi is authorized to borrow from its members and lend to its members. In India, Nidhi companies are formed to practice the habit of savings among its member.
There are some rules and regulations that you need to follow before registering a company as a Nidhi company,
(i) A minimum of 7 shareholders are required
(ii) A minimum of 3 directors should be there
(iii) Rs 5lakh is the minimum amount of capital that is required
(iv) There must be no preference shares
(v) Director identification number or DIN is mandatory
(vi) The company must work with the goal of practicing savings by borrowing and lending to its members for mutual benefits.
Criteria to be fulfilled after registering a Nidhi company
(i) There must be a minimum of 200 members in the company within a year of registering the company.
(ii) The NOF of the Nidhi company should be at least 10 lakh rupees.
(iii) Uninfluenced deposits should be more than 10% of the outstanding deposits.
(iv) The ratio of deposit and NOF should be more than that of 1:20.
Even though Nidhi registration is simple, it requires professional assistance to get your work done without any inconvenience. Do not worry ERECTA TECHNOLOGY is here to make tasks easier for you. So, let's begin with the procedures of getting Nidhi registration.
Applying for DSC and DIN
There is a need to choose 3 different names for your Nidhi company. The names that you propose should be unique. Further, MCA will choose a name out of the three proposed names. The approved name will remain will be valid for 20 days only as per the Company Act rule 8.
Articles of association and Memorandum of association
The articles of association and the memorandum of association is needed to be filed in the register of companies(ROC) with the statement of subscription. To be precise the main objective of the Nidhi company must be mentioned in MoA and AoA.
CIN (Certificate of incorporation)
Generally, it takes around 15-25 days to form a Nidhi company to achieve the incorporation certificate. By going through this process, your company will get certified and you will also get the identification number (CIN) as well.
Bank account number, Permanent account number(PAN), and Tax deduction account number(TAN)
Now, you are on the verge of starting your Nidhi company. In this stage, there is a need to apply for PAN, Bank account, and TAN for your company. In general, it takes around a week to get the PAN and TAN, and later you need to apply for a bank account by submitting documents of the certificate of incorporation MoA and AoA to the bank.