SwiftTax eliminates the nuances for registering a Nidhi Company in India and makes it ideal for founders and shareholders to successfully get certified and run a business.
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SwiftTax eliminates the nuances for registering a Nidhi Company in India and makes it ideal for founders and shareholders to successfully get certified and run a business.
Since a Nidhi Company is similar to an NBFC, it falls under the jurisdiction of the Reserve Bank of India. However, Nidhi Companies ONLY deal with shareholder-members money. A Nidhi company can borrow money from its members and lend it to their members. Therefore Nidhi Companies are exempt from the core regulations of the RBI and other regulations applicable to NBFCs.
In order to protect the interests of the Nidhi Company, all the following criteria must be met within one year of the incorporation of the Limited Company.
Have a ratio of Net Owned Funds to deposits of not more than 1:20.Have unencumbered term deposits of not less than ten percent of the outstanding deposits.Have Net Owned Funds (NOF) of ten lakh rupees or more.Not have less than two hundred members (shareholders).
PanPanVoterAadharAadharLease AgreementPanPanVoterAadharAadharLease AgreementSwifttax guided assistance helps you register a Nidhi Company subject Nidhi Rules, 2014 under Company’s Act 2013 by running a name approval, DIN, PAN registration, registering company office address, etc., to complete the registration process faster.
SwiftTax expert assistance helps directors of your business to register and obtain a unique electronic signature for enlisting all your digital documentation and verification needs.
Once you obtain a digital signature SwiftTax assists you to file the SPICe form to the Ministry of Corporate Affairs and complete the necessary application requirements like MOA & AOA to file submission.
We offer to assist you with 360-degree GST compliance services once Nidhi Company satisfies incorporation of the Limited Company rules to avail maximum tax benefits and keep your business legally-compliant.
As per the Ministry of Corporate Affairs amendments to existing rules we help with post-incorporation auditing to satisfy the conditions laid by company’s Act and MCA to operate your Nidhi company without any legal hurdles.
A current bank account for a proprietorship will be opened under the name of the business to keep your business entity separate and compliant with taxes.
Yes, Nidhi companies are permitted to provide loans to their directors or their relatives as members, as long as these transactions are properly disclosed in the annual accounts in the footnote section. It is important for Nidhi companies to follow all legal and regulatory requirements related to such transactions, as well as to maintain transparency and accountability in their financial reporting.
Net Owned Funds are a measure of a company's financial strength and stability. They are calculated by taking the total paid-up capital and free reserves as shown in the latest balance sheet and subtracting any outstanding losses, deferred revenue expenditure, and intangible assets that may be listed on the balance sheet. This provides an indication of the resources that a company has available to cover its debts and other obligations.
Nidhi companies are not required to obtain the consent of the Reserve Bank of India (RBI) in order to be incorporated, which makes the process of setting up a Nidhi company relatively straightforward. Nidhi companies are incorporated as public companies and must include "Nidhi Limited" at the end of their name. They are subject to the regulations and requirements of the Companies Act, 2013, and the Nidhi Rules, 2014.
MCA acts as a primary regulatory body for Nidhi companies in India. It reserves the right to roll out guidelines relating to deposit acceptance activities.
A Nidhi company is a type of financial institution that is focused on promoting the financial well-being of its members by facilitating the easy exchange of funds between them. The loans available to members of a Nidhi company typically have lower interest rates than those offered by other financial institutions, which can encourage members to save more. The goal of a Nidhi company is to create a supportive financial environment that allows its members to improve their financial standing and achieve their financial goals.
The primary objective of a Nidhi company is to promote a culture of thrift and saving among its members. In order to achieve this goal, Nidhi companies are restricted by the Companies Act, 2013 to conducting lending and borrowing activities only between their members. This helps to create a supportive financial environment that encourages frugality and saving among the members of the Nidhi company.
No, Nidhi companies are not allowed to accept deposits in cash. According to regulatory guidelines, the maximum deposit acceptance limit for Nidhi companies is set at 20 times the Net Owned Funds (NOF) as shown in the latest audited financial statements. This limit is in place to ensure the financial stability and security of Nidhi companies, and to protect the interests of their depositors.
