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Nidhi company

Nidhi Companies are the companies set up with the object of cultivating the habit of thrift and savings amongst its members, receiving deposits from and / or lending to its members for their mutual benefit. Nidhi Company is a class of Non-Banking Financial Companies (NBFCs) and the Reserve Bank of India regulates by issuing relevant directions to them at regular intervals in matters relating to their deposit acceptance activities. Every Company incorporated as a Nidhi Company shall have the last words “Nidhi Limited” as a part of its name. Legaljini can help you with the formation of the Nidhi Company by obtaining relevant registration..

 

Advantages of Nidhi company

Perpetual Succession:

An incorporated company has perpetual succession. Perpetual Succession means the company shall continue to exist even if the member dies or ceases, etc. Nidhi companies are not affected by the status of their owner when it comes to their existence. Changes within the management does not bring any affect to the identity of the company, the Company will remain the same with same privileges, immunities, estates and possessions. The Company shall continue to exist till its wound up in accordance with the provisions of the relevant law. Death or inability to continue of owner does not hinder the proceedings of the company.

Limited Liability:

The nidhi company enjoys the benefit of limited liability. The liability of the company is different as from its members of a company. Liability for debts incurred by the company lies in the company itself and not on the members. If anything happen to the company, its members are personally affected.

Owning Property:

A producer company being an entity, can acquire, own, enjoy and alienate, property in its own name. No member can make any claim upon the property of the producer company as long as it is a going concern.

Nidhi company Process

A minimum of two designated partners are required to form a LLP.

01

Digital Signature Certificate

Obtain Digital Signature Certificate (DSC) for the proposed director/s.

02

DIN Number

Obtain Director Identification Number (DIN) for the proposed director/s.

03

Application

Select a suitable company name and forward the application to Ministry of Corporate Affairs (MCA) for availability of name.

04

Drafting

Draft its Memorandum of Association (MOA) and Articles of Association (AOA).

05

Documents

Sign and file various documents including MOA & AOA with the Registrar of Companies (ROC) electronically

06

Payment

Payment of requisite fees to Ministry of Corporate Affairs along with the stamp duty.

07

Certificate

Obtain Certificate of Incorporation.