Nidhi Company Guide PDF

1. Swarit Advisors International Nidhi Company REGISTRATION GUIDE BY SWARIT ADVISORS

2. Overview A BRIEF BACKGROUND Planning to start a finance business the Nidhi company is the best suitable business structure for an early-stage startup. The young entrepreneurs who want to enter the finance business, we suggest registering Nidhi company. Nidhi company is also a type of NBFC and it is registered under the Companies Act. 2013 Nidhi company is exempted from RBI Regulation. You will only need to select and finalize the directors and shareholders. You can register Nidhi company with 7 members and Minimum paid-up capital of Rs. 5 lacs. The Nidhi Company is a type of a Public limited company hence a minimum of 3 directors required for registration with MCA.

3. Members and directors can be the same person in the Nidhi company. Nidhi company registration is completely an online process and it will be approved by the Ministry of Corporate affairs in 15-20 working days.

4. Nidhi company works as a small finance bank in a district or state level subject to the fulfillment of the necessary terms and conditions lay down by the regulatory authority. The principal objectives of Nidhi company are to accept deposits from its members and give loans to its members. As per Nidhi rule 2014, You can only open one branch one district and after 3 years of profitable business, further, you can open another branch in your state. In case you wish to cover another district in the 1st year of operation then you can register another Nidhi company. SWARIT ADVISORS

5. Principal Business of Nidhi Company REGULATION – Leverage Ratio Interest Cap on Loan RBI Approval Interest Cap on Deposit

6. Operations BRANCH SECURED LOAN MEMBERS PUBLIC RECORDS

7. Registration Process Steps Name Application SPICE-Part B AGILE-Pro SPICE-9 Grant of Certificate of Incorporation Digital Signatures Drafting of MOA Drafting of AOA PROCESS

8. Process Assignment As you know the Nidhi Limited Company registration process is completely online. While setting up the Nidhi company, the applicant company is required to be registered with the Ministry of Corporate Affairs. Our team will handle end to end registration and compliance process.

9. DOCUMENTS REQUIRED for Nidhi Company Registration Any Register ed Office taken on rent photogr aph ID Proof Address Proof Bank Self-attested copy of Pan Card Election id or Passport Latest Rent Scanned Passport size photograph of all the Directors and Shareholders; GST & Other Tax Documents Latest Bank Statement (Not older than two months) Latest Electricity Bill or Water Bill or Gas Bill. Electricity Bill in the name of Director or Shareholder or a related entity; NOC. Agreement; Latest Electricity Bill in the name of the owner; NOC.

10. POST REGISTRATION COMPLIANCES 5-Step Ordering Process 1 Minimum number of members within one year shall be 200 Minimum amount of capital within one year shall be INR 10 lacs. 2 Similar amount shall firstly be transferred to the General Reserve; 3 4 The ratio of NOF to Deposits shall always remain 1:20. A Nidhi company shall not announce a dividend of more than 25 % of its profits; 5

11. ANNUAL COMPLIANCE FOR NIDHI COMPANY NDH 1 Income tax Return MCA Return NDH 2 NDH 3 to be by 30th September of the following financial year; submitted for the extension of timeline in case the minimum number of 200 members has not been attained within the first financial year; Balance Sheet and Profit and Loss Statement filing in Form AOC 4 and MGT7 Details of members must be submitted within 90 days from the end of the Financial year. NDH 3 is the half-yearly return to be submitted, within 30 days of the conclusion of each half- year,

12. Contact Us ADDRESS Block H Plot No. 55, Ground Floor, Sector 63 , Noida, UP PHONE NUMBER +91-9821399320 EMAIL ADDRESS ho@swaritadvisors.com Source: https://swaritadvisors.com/nidhi-company-registration