Nidhi Company Compliance
Nidhi Company is a kind of NBFC, or Non-Banking Financial Company. Nidhi Company must submit a few annual compliance documents, which are referred to as Nidhi Company Compliances, just like any other company. The Nidhi Rules 2014 and the Companies Act 2013 outline the legal requirements that apply to Nidhi Company. Nidhi Companies are the ideal kind of business for people looking to launch a venture with a minimal outlay of funds.
The Nidhi Company is defined as a "company that has been incorporated as a Nidhi with the object of cultivating the habit of thrift and saving among its members, receiving deposits from, and lending to, its members only for their mutual benefit" in accordance with Section 406(1) of the Companies Act, 2013.
Advantages of Nidhi Company Registration
- Easy to Form the Company
A Nidhi Company can be established with 7 people, of whom 3 will be nominated as directors.
simple registration procedure
Registration takes only 10 to 15 days.
- Cost Efficient Registration
The Nidhi Company registration process can begin with a minimum capital investment of Rs 5,00,000. The business also gives customers the option to invest their money within 60 days of finishing the registration process.
- High Level of Certainty In Nidhi Company
Nidhi Company's main goal is to encourage its partners to develop a saving habit. As a result, Nidhi Company can be viewed as a long-term investment because its partners will continue to practice saving money.
- No RBI Regulations
There is no need for any RBI approval because the Nidhi Company satisfies the requirements for an NBFC. To regulate these companies' business operations and working procedures, the Nidhi Rules, 2014 were developed.
- Low Level of Risk
The risk level involved in the process of Nidhi Company registration is minimal as its nature of having deposit and giving loans to its partners as per the Nidhi Rules 2014. It is a secured and trustworthy way of providing loans to its members at a very less interest rate.
Documents required to Nidhi Company Compliances
Necessary compliances to be followed are:
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