Lucknow Consultant

Nidhi Company registration

Nidhi Company registration in Lucknow, Uttarpradesh is a type of non-banking financial company (NBFC) that is registered under the Companies Act, 2013 in Lucknow. It’s a type of mutual benefit society that primarily deals with accepting deposits from and lending money to its members. They are also known as “permanent fund”, “benefit fund” and “mutual benefit fund”.

Legal Provisions:

As per the Companies Act, 2013, Nidhi companies are required to have a minimum of three directors and seven members. The paid-up capital requirement is INR 5 Lakh. Nidhi companies are also regulated by the Reserve Bank of Lucknow (RBI) and are required to comply with the rules and regulations set forth by the central bank.

Advantages:

  • Easy to Form: The process of forming a Nidhi company is relatively simple and straightforward compared to other types of business entities.
  • Low Capital Requirement: Nidhi companies have a low capital requirement as compared to other types of NBFCs.
  • Tax Benefits: Nidhi companies are eligible for tax benefits as per the Income Tax Act, 1961.

Disadvantages:

  • Limited Activities: Nidhi companies are limited to accepting deposits from and lending money to its members only.
  • Stringent Regulation: Nidhi companies are subject to stringent regulation by the Reserve Bank of Lucknow and are required to comply with various rules and regulations.
  • Limited Growth Potential: Nidhi companies have limited growth potential as they can only accept deposits from and lend money to its members.

Process:

The process of registering a Nidhi company in Lucknow involves the following steps:

  1. Obtain Director Identification Number (DIN) and Digital Signature Certificate (DSC) for all the proposed directors.
  2. Reserve a unique name for the company.
  3. Prepare the Memorandum of Association (MOA) and the Articles of Association (AOA).
  4. File the incorporation form along with the required documents and fees with the Registrar of Companies (ROC).
  5. Obtain the certificate of incorporation.
  6. Apply for registration with the Reserve Bank of Lucknow.

Costs:

The costs associated with registering a Nidhi company in Lucknow include:

  • The fee for obtaining a DIN and DSC
  • The fee for reserving a company name
  • The fee for filing the incorporation form
  • The cost of drafting the MOA and AOA
  • Any other miscellaneous costs such as legal and professional fees.

Types:

Nidhi companies are of one type only.

Documents Required:

  • PAN card of all the directors and shareholders
  • Address proof of all the directors and shareholders
  • Identity proof of all the directors and shareholders
  • DIN and DSC of the directors
  • Memorandum of Association and Articles of Association
  • Certificate of name reservation
  • NOC from the owner of the registered office of the company
  • Declaration by the subscribers of the Memorandum of Association
  • Affidavit of compliance
  • Incorporation fee payment receipt
  • Proof of deposit acceptance and lending activities

It is important to note that the above-mentioned process and documents may vary depending on the specific laws and regulations of the state in which the Nidhi company is being registered. It’s advisable to consult a professional before registering a Nidhi company in Lucknow.

A Nidhi company is a type of non-banking financial company (NBFC) in Lucknow that specializes in offering small loans to its members for personal or business purposes. Nidhi companies are also known for accepting deposits from their members and offering attractive returns on these deposits. In this blog, we’ll explore the process of registering a Nidhi company in Lucknow.

Why Register a Nidhi Company?

Nidhi companies offer a range of financial services to their members, including savings, fixed deposits, and loans. By registering a Nidhi company, individuals can provide financial services to a large number of people in their community and help to promote financial literacy and inclusion.

Steps for Nidhi Company Registration:

The following steps must be followed to register a Nidhi company in Lucknow:

  1. Obtain Digital Signature Certificate (DSC): This is a secure electronic signature that is used to sign documents and applications online.
  2. Obtain Director Identification Number (DIN): This is a unique number assigned to each director of the company by the Ministry of Corporate Affairs (MCA).
  3. Apply for Name Approval: Submit an application to the MCA to approve the proposed name of the Nidhi company.
  4. Draft MOA and AOA: The Memorandum of Association (MOA) and Articles of Association (AOA) are important documents that outline the company’s objectives and rules.
  5. File Incorporation Documents: Submit the MOA, AOA, and other required documents to the MCA for incorporation.
  6. Obtain Incorporation Certificate: The MCA will review the incorporation documents and issue an Incorporation Certificate if the company meets the eligibility criteria.
  7. Obtain FSSAI License: Nidhi companies must obtain a Food Safety and Standards Authority of Lucknow (FSSAI) license to operate.
  8. Register with the Reserve Bank of Lucknow (RBI): Nidhi companies must also register with the RBI and obtain a certificate of registration.

In conclusion, registering a Nidhi company in Lucknow is a multi-step process that requires obtaining a Digital Signature Certificate, Director Identification Number, name approval, and filing incorporation documents with the MCA. Nidhi companies must also obtain a FSSAI license and register with the RBI to operate legally. By registering a Nidhi company, individuals can provide financial services to a large number of people in their community and help to promote financial literacy and inclusion.