Nidhi Company is a boon for individuals who want to start a loan/finance business in India because it guarantees simplicity and accessibility. Nidhi Company Registration is a procedure that allows for the formation of a Nidhi type of NBFC. The Mutual Benefit Finance Company is yet another name for this NBFC.The requirements of the Companies Act of 2013 apply to this formation. Nidhi Company's business is around the acceptance of deposits and the lending of money. This registration process is simple when comparison to the registration processes of other NBFCs. Nidhi firms benefit from unique concessions in terms of taxation and annual compliance.
BENEFITS OF NIDHI COMPANY REGISTERATION
- Easy formation Without and complexity Involved-Nidhi Company's registration process is devoid of all kinds of complications. Initiating a Nidhi Company is a simple procedure due to the lack of documentation required from start to finish in Nidhi Company Registration. Furthermore, the registration process takes only one or two weeks to complete.
- Limited Liability-Directors and shareholders are subject to limited responsibility under the Companies Act of 2013. Either as the corporation will make a profit or it will lose money in the commercial world.If the firm experiences a loss or suffers under financial hardship while conducting business, creditors, banks, and the government have no authority to seize the personal assets of any of the owners or directors.
- High Certainty Value-In a developing economy like India, everyone from an eight-year-old child to a sixty-year-old senior is concerned about money. Here, the practice of saving is aligned with Nidhi Company's main aim. One of Nidhi Companies' key goals is to instill the habit of saving in its membership.Participants would continue to save because it is a going concern of the institution with a high level of assurance.
- Few Guidelines-Because Nidhi Companies are governed by the Nidhi Rules, 2014, they are subject to fewer RBI regulations. The central government retains control over monitoring and regulation. It gives them control over the operating system as well as all of their actions. Despite the fact that Nidhi Company is an NBFC, it seldom observes RBI regulations. You can undoubtedly develop your Nidhi,RBI, the Indian government's central bank, will not obstruct your way. Go on and do it without placing oneself in a hurry.
- Separate Legal Entity-Nidhi Company own the property and acquire obligations on its own because it is a separate entity from its shareholders, directors, and promoters. It has the authority to sue or be sued by others. Unless the company requires a fund, the company cannot ask its membership for a donation.
DOCUMENTS REQUIRED FOR NIDHI COMPANY REGISTRATION-
- Copy of Directors Pan card
- Identity proof of every shareholder and the director
- Passport size photos of all the directors
- Electricity bill or other utility bills for the address proof
- Aadhaar Card of Directors as well as of Shareholders
- Address proof of the directors and shareholders
- Rent agreement copy (In case if rented)
- No-Objection-Certificate (NOC) from the Landlord
- Property papers copy