Skip to main content

What are the benefits of registering Nidhi Company

 

What is a Nidhi Company?

The Nidhi Company is a non-banking finance company that is governed by Section 406 of the Companies Act of 2013. A Nidhi company’s main business is lending money to the company’s members. Nidhi Companies include permanent funds, mutual benefit funds, a mutual benefit business, and benefit funds, to name a few.

Characteristics of Nidhi Company

  • A Nidhi company promotes small savings among the middle and lower middle class.
  • Accepts term deposits based on timely returns
  • The members of a Nidhi Company get easy access to loans against collaterals.
  • Promotes effective means of savings and sanctions loans with minimum documentation.
  • The membership structure is very rigid and therefore it follows a very secure means of investment.
  • A Nidhi company mainly deal with and support small income groups.
  • Depends on the honesty, integrity and loyalty of a member.
  • Setting up a Nidhi Company does not require any RBI regulations
  • There are lesser level of risks
  • A Nidhi company follows a cost-effective registration process
  • The objective of a Nidhi is to cultivate the habit of savings amongst the members.

Minimum requirements for Nidhi Company

  • Should be a Public Company having a minimum paid-up capital of Rs. 5 lakhs.
  • Not allowed to issue preference shares.
  • The last words of the name of the company should be “Nidhi Limited”.
  •  Minimum 3 Directors who must mandatorily be members of Nidhi Company.
  • Minimum 7 shareholders.
  • Minimum of 200 members

Comments

Post a Comment

Popular posts from this blog

Private Limited Company Registration by ACSPL

Image
  Private Limited Company Registration  by ACSPL What Do You Get After Incorporation Are you planning to register a company? Read about a few ways through which you can  Save Taxes in a Private Limited Company. Private Limited Company Registration At Affordable Rates Aavana Corporate Solutions will also help in online private company registration. We specialize in company registration with a wide range of business entities like Private limited,  One-Person Company (OPC) ,  Limited Liability Partnership (LLP) , and  Public Limited Company.  What’s impressive is that we offer all these services are provided at cheaper rates without compromising on the quality. Contact Us Trust our dedicated professionals to get your  Pvt ltd registration  done on time.  Get in touch  with us today and get a  FREE  consultation! Count on us to handle all your  Accounting  and  Taxation  services as well
Read more

Compliance under Provident Fund

Image
  EPF is generally a scheme that is introduced to provide wider benefits for the employees on the completion of their employment. Every company that employs 20 or more employees falls under the EPF scheme. Here is the compliance checklist under EPF Act Eligibility Any person employed for work at an establishment or by a contractor in or in connection with an establishment and drawing a salary of Rs 15,000 per month is eligible under the EPF Act. The salary is calculated as basic salary and dearness allowance. Rate of contribution Employer – 12% Employee – 12% 1.6% to the central government Pension Fund All employees who fall under the Provident Fund become a member of the Pension Scheme. If a person earns Rs 15000 per month, 8.33% of the basic salary is contributed towards the pension scheme from the employers share of contribution. A minimum contribution of ten years is required to receive monthly pension. Compliance Checklist Employers PF dues – 15th of the following month Employ...
Read more

AFTER INCORPORATION OF A COMPANY WHAT ARE THE STEPS TAKEN

Image
 AFTER INCORPORATION OF A COMPANY WHAT ARE THE STEPS TAKEN After the incorporation of the company, there are a few compliance’s that need to be done before 30 days from the date of incorporation. However, other requirements need to be done on whether or not in 30 days. These compliances are regulated by the Registrar of Companies. Any violations of such compliances will cause further problems and attract penalties. A few steps that need to be initiated after the incorporation of a company are mentioned below Company name board After the incorporation of a company, it is important to have a name board for the company and needs to contain the following details Name, registered office address, CIN number, GSTIN Number, etc. Letterhead of a company Letterheads help in better communication between two parties. For businesses of all sizes, be it individual business, a small company, or a large corporation, a letterhead must be used by all. Print the below-specified details on all busines...
Read more