A Nidhi Company, regulated by the Ministry of Corporate Affairs (MCA) under the Companies Act, 2013, is a non-banking finance entity. Unlike traditional financial institutions, Nidhi Companies operate with the primary objective of cultivating the habit of thrift and savings among its members.
a. Membership-based:
Nidhi Companies are formed by a group of individuals who voluntarily come together to contribute to savings and receive loans.
b. Limited Liability:
Members of a Nidhi Company enjoy the benefits of limited liability, ensuring their personal assets are not at risk in case of financial setbacks.
c. Mutual Benefit:
The primary purpose of a Nidhi Company is to foster mutual benefit among its members, emphasizing savings and providing financial assistance.
d. Core Activities:
Nidhi Companies engage in activities such as accepting deposits, lending to members, and promoting the culture of savings.
a. Community-Centric:
Nidhi Companies are designed to serve the specific needs of a community or group, promoting localized financial development.
b. Ease of Formation:
Compared to other financial entities, the process of establishing a Nidhi Company is relatively straightforward, making it accessible to smaller communities.
c. Limited Regulatory Compliance:
Nidhi Companies have a simpler regulatory framework compared to traditional financial institutions, making it easier for members to manage and operate.
d. Encourages Financial Discipline:
By promoting savings and providing affordable credit to members, Nidhi Companies contribute to fostering financial discipline and responsible financial behavior within the community.
a. Localized Financial Inclusion:
Nidhi Companies play a crucial role in promoting financial inclusion at the grassroots level, catering to the specific needs of local communities.
b. Member Empowerment:
Through the mutual benefit structure, Nidhi Companies empower their members by providing a platform for savings and access to credit within their community.
c. Flexible Operations:
Nidhi Companies have the flexibility to design products and services that align with the unique requirements of their members, fostering a sense of ownership and participation.
Any individual or entity interested in mutual benefit and abiding by the company's rules can become a member.
A Nidhi Company must have a minimum paid-up equity capital of Rs. 5 lakhs.
The interest rates are regulated by the Ministry of Corporate Affairs to prevent exploitation of members.
For registration of Nidhi Companies in India, the following documents are required:
Memorandum of Association (MOA) and Articles of Association (AOA): Clearly outlining the objectives and rules governing the Nidhi Company. Declaration by Subscribers and Directors: Confirming compliance with Nidhi Company rules and regulations. Identity Proof and Address Proof: For all subscribers and directors. Registered Office Proof: Document establishing the registered office of the Nidhi Company. NO Objection Certificate (NOC): If the property is not owned by the Nidhi Company, a NOC from the property owner is required. Common Seal: A common seal with the name of the Nidhi Company engraved.
Namblabal Pampore
Near J&K Bank,
Jammu and Kashmir,192121
+91-7889612930
info@jkstartup360.com
Explore simplicity with JKStartup360. We specialize in streamlined FSSAI registrations, providing expert guidance for your compliance journey from start to finish.
Navigate the complexities of company registrations effortlessly with our expert guidance. From initiation to completion, we simplify the process, ensuring your focus stays on business growth.
Elevate your brand with JKStartup360. Streamline the trademark registration process effortlessly with our expert guidance. From application to protection, we make trademarking simple, letting your brand shine.
Maximize your financial potential with JKStartup360. Let our experts guide you through seamless Income Tax Return filings. We simplify the process, ensuring compliance while you focus on your financial goals.
Streamline your journey to GST registration effortlessly with our expert guidance. From application to compliance, we make the GST registration process smooth, letting you focus on business success.
From website development to SEO and social media marketing, our experts tailor strategies for your online success. Navigate the digital landscape seamlessly and elevate your business with our comprehensive digital marketing solutions
Try it Risk Free we Don’t Charge Cancellation Fees.
Working with a life coach is like hanging out with a really honest friend who believes in your dreams, always wants the best.
+91-7889612930