The Procedure of Registration of Nidhi Company Software

NIDHI COMPANY SOFTWARE is completely loan management software. A Nidhi company is a type of company in the part of Indian non-banking finance, that is recognized under section 406 of the Companies Act, 2013. There are several software companies giving registration it is true. It is a matter of fact that any software company that supports the registration of Nidhi company software but at the end of the day after receiving the outcomes there clients or users whatever normally they feel unsatisfied because the registration process is not unique or it is not easy.

Let’s discuss the steps of Nidhi company incorporation.

All the Directors and Shareholders KYC is required:

There is a requirement of Minimum of 3 directors and 7 members. Same individuals can become both members and directors. Without the DIN numbers, maximum of 3 members can become directors at the time of company incorporation.

Digital Signature

DSC (Digital Signature) is an essential requirement for initiating the Registration Process of Nidhi Company. All the required forms are submitted that are must be self-attested.

Required details :

1. Email ID and Mobile number

2. PAN and Aadhaar

Approval of Name

The suggested names of Nidhi Company must be unique and should not be similar to the names of the company that is already registered. The name that can be taken with the form of Reserve Unique Name (RUN).

Documentation

After the digital signature and approval of the name, we will send a mail to all the directors' and shareholders' declarations sheets for their approval, articles of association, memorandum of association, and sheets of subscription.

Final Incorporation (MoA and AoA)

After the procedure of approval of name is completed, the application for Registration of Nidhi Company required to fill the forms that is must be submitted through SPICe Form. The application must go with the Association of Memorandum (MoA) and Articles of Association (AoA) of Nidhi Company. Once the correct investigation of the application is completed, COI is released.

PAN and TAN

In INDIA PAN and TAN applications will be done with the Registration of Nidhi Company.

Mandatory compliances for Nidhi Company

Business Commencement -

It is a declaration that is to be provided by the directors within 180 days of company incorporation announcing that the subscribers to the Memorandum of the company need to pay the price of shares so acknowledge by them, along with verification of registered office address of the company. This declaration requires to be filed with proof of subscription money acquired by the company in the form 20A with the Registrar of Companies.

Auditor Appointment - Discussion with of First Auditor -

As per section 139(6) the first auditor of the company apart from a government company shall be selected by the Board before 30 days of Incorporation of the company. In the case of Board's failure, an EGM (Extraordinary General Meeting) shall be conducted before the 90 days to select the first auditor.

NDH 1

Nidhi requires to fill a return of statutory compliances in Form NDH 1 before the 90 days from the completion of the first financial year after the registration process and where it is applicable, the second financial year, with a fee as mentioned in Companies (Registration Offices and Fees) Rules, 2014 with the Registrar based on certification provided by a chartered accountant or a secretary of the company or a cost accountant in practice.

NDH 2

If a Nidhi is not following the rules (a) or (d) of sub-rule (1) provided by the company, before the 30 days from the end of the first financial year, needs to apply to the Regional Director in Form NDH 2 with a fee that is mentioned in the Companies (Registration Offices and Fees) Rules, 2014 to increase the time and the Regional Director can investigate the application and pass the orders before the 30 days of getting the application.

NDH 3

a) Number of members admitted

b) Number of members ceased

c) Calculation of Net Owned Funds

d) Details of Deposits.

Why Nidhi Company must be registered?

a) Low mobilization of deposits

b) Perfect for middle and lower-income groups

c) Loan at lower rates of interest

d) Protected and on-time returns

e) There is no any extra interference

What are the post-incorporation requirements for Nidhi Company:

a. Minimum 200 shareholders are required.

b. There is a requirement of at least Rs 10 lakh net owned fund.

c. At least 10% of the unpaid deposits must be received as encumbered deposits

d. Deposits cannot be taken by the company exceeding 20 times of net owned fund

What are the minimum requirements when the Nidhi Company registration is completed?

a) Once the registration procedure of Nidhi Company is completed, the following requirements are to be reached within one year

b) At least Rs 10 lakh must be managed as net owned funds

c) Minimum 200 members should be entered

d) Out of whole unpaid deposits, 10% should be unencumbered term deposits

e) The ratio of net owned funds to deposit must be 1:20.

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