Nidhi Company Registration

Nidhi Company Registration

CCV India provides its consulting services for registration of Nidhi Company. A Nidhi company is a mutual benefit society with mostly localized operations. They accept deposits from their members which is the principal source of funding and use these deposits to give loans to individuals registered as members. Only a company incorporated by the Ministry of Corporate Affairs can use the name Nidhi.

Benefits of Nidhi Company

In a Nidhi Company, the members are not considered accountable for the liabilities of the Company.

A Nidhi company is unaffected by departure or death of a member, it is a separate legal person and its existence continues. Its existence is also uninterrupted by the changes in membership.

Because of monitoring by the Central Government, Nidhi companies are more credible in comparison to Mutual Benefit Organizations.

How to Register a Nidhi Company?

A minimum of three directors are eligible to start a Nidhi company with a minimum authorized capital of RS. 500,000 (5 lacs). All the three directors need to apply for DSC & DIN, it is followed by applying for the name. The registration process for a Nidhi company is same as a public limited company. After incorporation to qualify for Nidhi Status, the company should have a minimum of 200 shareholders and net owned funds not less than 10 lacs.