Nidhi Company Registration – Finance Company Registration
Nidhi Company Registration - Finance Company Registration
Financial Company (Chit Fund Company) is a type of Non-Banking Financial Company (NBFC). Main Purpose of this company is to borrow and lend money only from its members.
Financial Company is not required to receive the license from Reserve Bank of India (RBI), and it is easy to form. Nidhi company activities come under the ambit of RBI. In this category of NBFC, Directors are free from the shackles of eligibility norms of least qualification. It is registered as a public company and should have “Nidhi Limited” as the last words of its name.
Documents Required for Nidhi Company Registration
- Passport-sized photographs
- No Objection Certificate (NOC) (signed by the landlord/owner)
- Digital Signature (DSC)
- Director Identification Number (DIN) of directors
- Memorandum of Association of the company (MoA)
- Articles of Association of the company (AoA)
- PAN card: This is necessary for the filing of the financial transactions made by the company. PAN card is also necessary for the taxation process of the company
- Address Proof ( Bank Statement / Driving License / Residence Card OR Any other Government issued identity proof having the address)
- Residential Proof ( Mobile Bill / Telephone Bill / Electricity Bill / Bank Statement )
- Passport: Passports are only compulsory for the companies whose director is a foreign national. Passport is not a mandatory document for Indian directors of Nidhi companies
- Registered Office Proof: Registered office proof for Nidhi company registration because of the importance of the same in the issue of government supported schemes and loans
- It is important to note that Nidhi company registration application can be filled out online. Once the Nidhi company registration fee is fully paid, the registration form is submitted and sent for further processes of approval. Once submitted the Nidhi Company registration process is completed.
Benefits of a Nidhi Company / Finance Company
The registration process of Finance Company is easy process with all the valid documents. As less documentation process prevails from the beginning to end in Nidhi Company Registration, initiating a Finance Company is an easy task. In addition to this, the registration process gets completed within 12 to 15 days.
In accordance with the Companies Act, 2013, directors and shareholders are having limited liability, if the company suffers from any loss or even goes through any financial obligations, creditors, banks, and the government have no power to seize the personal assets of any of the shareholders or even the directors.
The habit of saving is going in the same line with the central goal of Finance Company. Inculcating the habit of saving amongst its members is one of the primary purposes of Finance Companies. As it is a going concern establishment and is full of certainty, members would keep on sticking to the good habit of saving.
Less Govt. Rules & Guidelines
Nidhi Company falls under the category of NBFC, it rarely follows RBI Regulations. Form your Finance Company in India as RBI is not going to create any trouble in your path. Go ahead without putting yourself in any rush-n-hush.
Separate Legal Entity
Being a separate legal entity from its shareholders, directors as well as promoters, It has got the power to sue anybody or be sued by others. Finance Company can own property and incur debts on its name.
Availability of Funds
Nidhi Company is the most secure and most accessible way of accepting deposits from the end of the general public. Only the requirement is that they should be the registered members.
Death or departure of any member is not going to affect a Finance Company as it has perpetual existence.
Meeting the Requirements
Nidhi Companies play a crucial role in fulfilling the demands of people belonging to the category of lower and middle-income society by extending financial support to them without any further lengthy documentation involved.
Ease Of Management
In Nidhi Company, bringing changes is not a problem of worry and concern, unlike other NBFCs.
It is better to Connect with Best Corporate Lawyer before going to register.
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