In India, Nidhi companies are getting regulated directly by the Ministry of Corporate Affairs (MCA) and followed the guidelines of RBI. Any group or association where 7 people are members can apply for Nidhi company registration. The company must get registered under the Companies Act of 2013 and the members have the shares of the company.
The members or shareholders of company can take loans at a very cheap rate. The Nidhi company registration process is simple and has some simple steps, which are not complex like other NBFCs. In this digital era, you can form a group and apply for registration of your Nidhi company online. Some professional agencies are also helping small groups to establish company comprehensively.
But before understanding the Nidhi company registration procedure, you must understand the core reason why a Nidhi must get registered as per the prescribed law.
Why Nidhi companies must get registered?
Financial inclusion is the key idea behind Nidhi Company incorporation in India. These companies are operating at a very small capacity with a limited number of people. Mobilizing the small savings of its members is the motto of these companies. Along with that, the company will help its members to get loans easily at a very cheap interest rate.
Besides that, there are a lot more essential reasons behind the establishment of Nidhi companies in India. Some of the reasons are like these;
- Including low-income savings
In India, nearly 42 percent of people are belonging to the low-income group. Therefore, the financial inclusion of these people becomes necessary in India for overall economic growth. Nidhi companies are helping to mobilize the savings of these people and helping them to become financially sustainable.
- Providing cheap interest rates
Nidhi companies are offering loans that have a very low rate of interest for the members. For this reason, low-income groups in India are getting attracted to it. Sometimes the interest rates at nidhi company are lower than at traditional banks. Hence, company must get registered as per the law to reduce fluctuations in its interest rates.
- Safe & secure savings
The operation of mutual benefits in India is very secure because of its limited reach. However, because of the small size of the company, the members might feel hesitation in the operating procedure of this. Hence, the registration of company by providing appropriate Nidhi company registration fees at the MCA registration office becomes essential. This will bring safety and security to the Nidhis operation among its members.
- Simple operating procedure
Registering the Nidhi company as per the prescribed procedure will help the company to simplify its working procedure. After registration, the company has to follow the rules and regulations, which will help them to handle their financial operation accurately. So, the formation of company will help to make the process super simple and efficient.
Procedure of Nidhi Company Registration
The procedure for registration of company is quite simple but has multiple stages. To begin with, you have to fill out the Nidhi company registration form appropriately. The Ministry of Corporate Affairs (MCA) is the main regulator of India and it follows the guidelines of RBI separately. Hence, while filling out the registration form, you must go through all these websites for having a clear observation regarding the registration.
Besides that, you have to choose a name for the Nidhi company from the Reserve Unique Name (RUN) form. The Nidhi must have a unique name to operate its functions separately with a different set of members. Moreover, you have to prepare digital documents for the directors of company.
Documents need for registration
Key documents that must be prepared before the registration process are mentioned here. The process of registration is continuous thus you have to keep the documents ready with you.
- DIN numbers and PAN details
- Digital signature of all members
- AoA & MoA
- TAN details and Bank Account Number
- GST certificate and Office address proof
The process of registration is complex thus you can take professional help to get the registration done smoothly. Companies like One Click Business Solution can register the Nidhi business in the fastest way through their expert help. These companies will help you to compile all the documents and submit them on time before the stipulated deadlines.
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