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Nidhi Company Registration

Corpstore helps their clients to cultivate the habit of savings and economic personality via the Nidhi company registration in Coimbatore. It is a Mutual Benefit society evolved under the Companies Act, 2013. The term Nidhi states Treasure, Finance or Fund. Nidhi Company is also known as Mutual Benefit society or Mutual Benefit Fund. It is a company mainly intends to create for the mutual benefits of its members. The mutual benefits mainly come from lending and borrowing. The members of the Nidhi Company make some deposits and the company within those deposits makes the loans at reasonable interest to their clients. The main intention of Nidhi is to save peoples from the high interest rate on money lenders.
Nidhi motivates peoples to develop the habits of savings and self- certitude. Consequently, Nidhi Company saves all kinds of peoples via their less interest. Long before there were some institutions for lending and borrowing the financial framework but those were not in the same name. Nowadays it is transformed into Nidhi Company. Nidhi Company enables secured loans against family ceremonies, marriage, medical issues, education, and other property purchases.

Advantages of Nidhi Company

  • Limited Liabilities

    Limited liability means limited responsibilities. When we talk about the liabilities it is congested to the amount of their total investment to the company. The personal properties or assets do not influence the debt of the company. The personal things are not used to combine with the company responsibilities and debts.

  • Fund obtainability

    The members of the company contribute some funds and from those funds, they make loans at simple interest.

  • Legal Existence

    The Mutual Benefit society enjoys a separate legal existence. The company and the members are vitally different. The company can own the assets and make the transactions by its own name. The debt also experiences in its own name. Thus in this way, it possesses separate legal existence.

Loans under Nidhi Company

  • The maximum amount of loan to a single person will not exceed Rs.200, 000 if the deposit is less than 2 crores.
  • Nidhi Company does not allow any insecure and microfinance loans.
  • The time lap for the gold loan is 1 year.
  • The repayment of the property loan cannot exceed 7 years.
  • The gold loan’s maximum amount can be 80% depending on the value of the gold.
  • The maximum property loan cannot extend 50% of the value of the property.
  • It should not offer vehicle loans.

Documents Required for Nidhi Company

  • PAN Card
  • Any of the utility proof, it includes Electricity Bill, Telephone Bill, Mobile Bill, or bank statement.
  • Anyone among the following. It includes ID proof Voter ID, Adhaar card, Passport, and Driving License.

FAQ’s

  • What is a Nidhi Company?
    Nidhi Company is a Public limited company and the main purpose of this sort of company includes depositing, accepting and lending money to its members. It is a Non-Banking Financial Company (NBFC) released from the provision of the RBI.
  • How long the Nidhi Company is valid for?
    Once the Nidhi Company is registered it is existence until the annual compliance is met on a regular basis. If the annual compliance is not fulfilled then the company becomes an undeveloped company and may strike off from the register after a period of time. The undeveloped one can be revitalized for a period of 20 years.
  • Is there any restriction for a salaried person to become a director of the company?
    There is no restriction to become the director of the company. Nidhi Company is totally hassle-free and there is no worry about the restrictions.
  • What about the capital amount to start a Nidhi company?
    The minimum capital amount to start a Nidhi company is Rs. 500000 and there are no limits on the maximum capital.