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Overview of Nidhi Company Registration Online in India

Nidhi Company Registration Online in India is regulated by the Ministry of Corporate Affairs and falls under Section 406 of the Companies Act, 2013. The RBI monitors all financial transactions of Nidhi companies. The main objective of Nidhi company incorporation is to provide financial assistance to its core members through lending money. Members or shareholders are encouraged to save and invest money in the company. The invested deposits are utilized for granting advances or loans and acquiring government-issued stocks, debentures, bonds, securities, and more.

Registering for Nidhi Company of Savings is a wise option if savings is a priority for the members. Register your Nidhi Company online with Filing Buddy and take advantage of saving money and lead a careful business and life.

Advantages of Starting a Nidhi Company Registration in India

Starting a Nidhi company or registering for Nidhi in India is a simple process with less complexity than other finance-related businesses such as NBFCs.
Nidhi companies promote saving habits among their members or shareholders and facilitate borrowing and lending among them through a mutual benefit society.
As a member, one can borrow money at a lower interest rate than banks offer, making it advantageous in times of need.
The borrowing and lending procedures within Nidhi companies are fixed and less complicated than those of banks or informal settings.
Nidhi finance registration companies provide banking services to rural and remote areas of India that may need access to financing from nationalized banks or NBFCs.

Checklist Nidhi company registration online in India

A minimum of 200 members must be enrolled within one year from the date of its incorporation.
The company must have an equity share capital of Rs. 10 lakhs or more for Nidhi Limited company registration. The entire equity share capital amount must be paid up, and the Net Owned Funds (NOF) should increase to Rs. 20 lakhs within one year of registration.
At least 10% of outstanding deposits must have unencumbered term deposits.
The Net Owned Funds (NOF) to deposits ratio must be 1:20, where 10% of the total deposits should be in a fixed deposit account of any national bank.
This ratio considers free reserves and equity share capital but excludes accrued losses and intangible assets.

10 things that Nidhi Companies cannot do as a Non-Banking Financial Company (NBFC)

Nidhi Companies are not allowed to advertise or solicit deposits.
Nidhi Companies cannot use preference share capital or debentures to raise funds for themselves.
Nidhi Companies cannot offer any brokerage or incentives for granting loans or mobilizing deposits. However, they can employ individuals with a fixed monthly salary.
Nidhi Companies can only open a branch or subsidiary once they achieve a profit for three consecutive years.
Nidhi Companies cannot accept deposits from non-members.
Members of the Nidhi Company cannot open a current account under the Nidhi Scheme.
Nidhi Companies cannot engage in hire purchase finance.
Cannot acquire or insure securities from corporations.
Engaging in acting as an NBFC in loans or advances.
Cannot acquire stocks, bonds, shares, securities, debentures, or other marketable securities issued by any local authority or government.

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