INR 54,999 /- (All Inclusive)
Easy to Setup, Easy to Register
A feasible option for low-budget businessmen who want to safeguard investments! Cultivate the practice of thrift and savings among company members.
The Hindi term ‘Nidhi’ typically refers to finance or fund. Nidhi Company simply refers to a company that has been setup with an objective to develop the practice of savings and reserve funds among its members and also obtaining deposits and offering to its members only for their mutual advantages.
There must be a minimum of 7 person required including 3 directors to incorporate a Nidhi Company. As this kind of company is easy to setup and register, a large number of entrepreneurs choose to go this way to give life to their dreams. Here it is important to note that all such companies have the last word as “Nidhi Limited” as part of their name. Being registered like public limited companies, Nidhi Company encompasses all the features of public limited companies, for example, limited liability.
The advantages associated with Nidhi Company include:
At Trademark Bazaar, we have experienced professionals who are able to guide through your decision to setup a Nidhi Company. From giving initial consultation to preparing documents, and obtaining necessary approvals, we leave no stone unturned to give wings to your dream of having your own business entity.
For all those who have a low-budget and want to setup a formal business, Nidhi Company is the most sought after option. It is very much easy to setup a Nidhi Company as it doesn’t involve any background check and no prescribed qualifications required for the owners.
What are the requirements for incorporating a Nidhi Company?
A Nidhi company is generally registered like a Public Limited Company. Therefore, the requirements for setting up a Nidhi company involved a minimum of three Directors and Seven Shareholders. Though, the MOA of a Nidhi company must mention that the foremost objective of the proposed company is to cultivate and endorse a practice of thriftiness and savings among its members, and receive deposits from or lend loans only to its members, for their mutual benefits.
What about the safety of the deposits with the company?
The deposits are depends upon company guidelines and there should be follow by company.
How does the Nidhi Company use the fund/deposit procured by it?
Nidhi Company utilizes the funds in loaning to the Shareholder/members only as per the Nidhi company rules. Nidhi Company lending is typically done in theform of small loans for business and microfinance.
Who can invest in a Nidhi Company?
Only shareholders/members of the Nidhi Company, who possess a membership ID, can choose to investin the company. To become a member, one must be of 18 years and aboveby given age proof and must be a citizen of India.
Can I become a Shareholder/Member of the Nidhi Company?
1. Business Restrictions:
Nidhi Companies are stringentlyproscribed from getting involved into the following kinds of businesses:
· Business related to chit fund, hire purchase finance, leasing finance, insurance or acquisition of securities issued by anybody corporate. Nidhi Companies cannot conduct any business other than the business of borrowing or lending in its own name.
2. General Restrictions:
· Nidhi Companies are not meant to issue any shares, debentures or any other securities by any name or in any form whatsoever.
· Nidhi Companies cannot run current account with its members. Please note that there is a limitation on current account that refers that one can still open savings account with the members.
· Nidhi Companies cannot concern or cause to be given any advertisement in any type for soliciting deposit.
· Nidhi Companies cannot pay any brokerage or incentive for activating deposits from members or for placement of funds or for yielding loans.
Can a minor become the member of a Nidhi Company?
No, a minor won’t be permitted to act as a member of Nidhi but deposits may be invited in the name of a minor, if they are done by the natural or legal guardian who is a Nidhi member.
What does ‘Net Owned Funds’ mean?
“Net Owned Funds” simply refer to thecumulative of paid up equity share capital and spare reserves as abridged by accrued losses and imperceptible assets mentioned in the latest audited balance sheet.
Profits from issue of preference share shall not be involved in Net Owned Funds.