If you want to start your business of finance and give financial assistance to your member the only best option is to run business under the name of Nidhi Company.
All we need
KYC of all director and Address proof of the company.
1 DSC and & 3 Din of Director
Apply for company name reservation and taking approval for company name
Preparation of MOA & AOA of company
Approval of RBI
Filling INC-32 for company incorporation.
Apply for PAN/ TAN.
Nidhi Company is a very old concept which allows a company to accept deposit from members and provide loans to its other members and charge some interest form members in the form of nosiness.
It generally follows the principle of mutual benefit or mutual assistance that fund should be raised from members and it should be utised to provide loan to other members
Nidhi Company is regulated by two authorities one is Ministry of company affairs and the other one is RBI, who regulate and watch dog of financial activity perused by the Nidhi company
A Nidhi company can give loan to its members for minimum period of 6 months and maximum 5 years.
There are minimum seven members required for forming Nidhi Company, but Nidhi Company should accumulate 200 members in one year after its formation if he fails to do, then RBI can grant extension of time to raise the member up to 200.
The minimum capital required for forming Nidhi Company is 5 lacs and apart from this they also deposit 10 % of its total deposit from members in nationalized bank as a security.
For a member it’s a cheaper way to borrow money from Nidhi Company rather than borrow from banks and other financial institution.
STEP-1: FIRST WE WILL APPLY FOR YOUR DIGITAL SIGNATURE USUALLY IT TAKES 2 DAYS. A DIN IS NOTHING MORE THAN YOUR SIGNATURE IN ELECTRONIC FORM
STEP-2: AFTER GETTING DIGITAL SIGNATURE WE APPLY FOR DIN FOR ALL DIRECTORS IT TAKES ONE DAY FOR GETTING DIN, EVERY PERSON WHO WANTS TO BECOME DIRECTOR SHALL APPLY DIN BEFORE BECOMING DIRECTOR:
STEP-3: AFTER GETTING DSC AND DIN NOW WE APPLY FOR COMPANY NAME APPROVAL FORM REGISTRAR OF COMPANY, THE NAME OF COMPANY AND BRAND NAME CAN BE DIFFERENT FOR EXMAPLE PAYTM IS BRAND NAME OF COMPANY ONE97 COMMUNICATION.
STEP-4: AFTER GETTING APPROVAL FROM REGISTRAR OF COMPANIES WE HAVE TO FILLED A FORM FOR COMPANY REGISTRATION SPICE-32, 33,34 ALONG WITH INC-7,8,9 AND OTHER FORMS.
Self-attested copy of PAN Card
Self-attested copy of Driver’s License/ Voter ID/ Aadhaar Card/Passport
Self-attested copy of Bank Statement/ Telephone Bill/Mobile Bill/ Electricity Bill
Passport-size Photograph
Specimen Signature Certificate
Note: After submission of all documents, normally it takes 15 days to incorporate the company.
1. CAN I EXPAND THE BUSINESS BY OPENING BRANCH?
Yes you can open your branches but the only condition is atleast 3 branches are already open in a district in which your registered office reside , then you can open other branches in different district but a prior intimation of 30 days is need to send ROC.
2. WHAT IF I DOES NOT GET REQUISTE NUMBER OF 200 MEMBERS IN YEAR?
If you does not comply the condition of admitting 200 members in one year, then you can apply to ROC for time extension.
3. CAN OUTSIDER ALLOWED TO DEPOSIT ITS CAPITAL TO NIDHI COMPANY FOR FUNDING?
No, only members can contribute its capital, outsider are not allowed, to contribute its capital.
4. WHO CAN BECOME MEMBER?
Any person can become member and lends its money, or give deposit, but a corporate cannot become member.
5. HOW MUCH CAPITAL IS ALLOWED TO NIDHI COMPANY TO RAISED FROM MEMBERS?
A Nidhi company can accept deposit 20 times of its net owned assets as per last balance sheet.