I. Nidhi Company Registration & Compliance:

• Eligibility Assessment:
  • Thoroughly analyze the client’s proposed business activities and objectives to ensure they align with the requirements for Nidhi Companies as defined under Section 406 of the Companies Act, 2013.
  • Verify that the client meets the criteria for membership, minimum number of members, and other initial requirements.
• Guidance on Nidhi Rules & Regulations:
  • Provide expert advice on the Nidhi Rules, 2014, and other relevant regulations governing Nidhi Companies.
  • Explain key compliance requirements related to capital, lending practices, membership, and operations.
• Name Availability Check & Reservation:
  • Assist clients in selecting a suitable name for their Nidhi Company that complies with naming guidelines and is not already registered.
  • Help reserve the chosen name with the Registrar of Companies (ROC).
• Documentation & Filing:
  • Prepare all necessary incorporation documents, including:
    • Memorandum of Association (MOA)
    • Articles of Association (AOA)
    • Declaration by subscribers and directors
    • Proof of address and identity of directors
  • File the documents with the ROC, ensuring accuracy and completeness.
• Post-Incorporation Compliance:
  • Guide the Nidhi Company in obtaining a PAN and TAN.
  • Assist with opening a bank account.
  • Advise on initial compliance requirements after incorporation.

II. Operational & Regulatory Compliance:

• Compliance Audits & Reviews:
  • Conduct periodic audits to assess the Nidhi Company’s compliance with the Nidhi Rules, 2014, and other relevant regulations.
  • Identify potential areas of non-compliance and recommend corrective actions.
• Financial Management & Reporting:
  • Guide Nidhi Companies on maintaining proper accounting records, preparing financial statements, and conducting annual audits in compliance with legal requirements.
  • Advise on complying with regulations related to capital adequacy, net owned funds, and lending practices.
• Membership Management:
  • Help companies set up systems for managing members, including:
    • Admission of new members
    • Share issuance and transfers
    • Maintaining a register of members
• Annual General Meeting (AGM) & Other Meeting Compliance:
  • Provide guidance on conducting AGMs and other meetings in accordance with the Companies Act and Nidhi Rules.
  • Assist in preparing meeting notices, agendas, minutes, and resolutions.

III. Growth & Expansion Strategies:

• Branch Expansion:
  • Advise Nidhi Companies on the process and requirements for opening new branches, including obtaining necessary approvals from the ROC.
• Business Development:
  • Provide guidance on expanding the Nidhi’s operations, attracting new members, and increasing its financial base.

FAQs: Nidhi Company Registration and Compliance – The CauseConnect Team

1. What is a Nidhi Company?

A Nidhi Company is a type of Non-Banking Financial Company (NBFC) in India that operates on the principle of mutual benefit. Its primary function is to borrow and lend money to its members. It is regulated by the Ministry of Corporate Affairs (MCA) and governed by the Companies Act, 2013, and the Nidhi Rules, 2014.

2. What are the key characteristics of a Nidhi Company?

• Mutual Benefit: It operates for the benefit of its members only.
• Restricted Activities: Its core business is borrowing and lending money to members. Other financial activities are generally prohibited.
• Membership-Based: Only individuals can become members.
• No External Deposits: It cannot accept deposits from the general public.
• Focus on Thrift and Savings: It encourages savings and thrift among its members.

3. What are the benefits of forming a Nidhi Company?

• Easy Formation: The registration process is relatively straightforward.
• Lower Capital Requirements: Compared to other types of NBFCs.
• Tax Benefits: Nidhi Companies may enjoy certain tax advantages.
• Limited Liability: Members’ liability is limited to the unpaid amount on their shares.
• Community Focus: Promotes financial inclusion and supports local communities.

4. Who can form a Nidhi Company?

Only a group of individuals (minimum 7) who are Indian citizens and reside in India can form a Nidhi Company.

5. What are the key requirements for Nidhi Company registration?

• Minimum Members: At least 7 members are required for incorporation.
• Minimum Net Owned Funds: The company must maintain minimum net owned funds, as per the Nidhi Rules.
• Non-Acceptance of Public Deposits: It cannot accept deposits from the public.
• Adherence to Nidhi Rules: All operations must be in compliance with the Nidhi Rules, 2014.

6. How can The CauseConnect Team assist me with Nidhi Company registration?

Our expert team provides end-to-end support, including:

• Eligibility Check: We assess if your proposed activities meet Nidhi requirements.
• Guidance on Nidhi Rules: We explain the regulations and compliance obligations in detail.
• Name Availability & Reservation: We help you choose and reserve a suitable company name.
• Document Preparation & Filing: We draft all required documents and handle the ROC filing process.
• Post-Incorporation Compliance: We assist with obtaining PAN, TAN, opening a bank account, and other initial compliance requirements.

7. What services do you offer for ongoing compliance?

We offer a range of compliance services, including:

• Compliance Audits: We review your operations to ensure adherence to Nidhi Rules.
• Financial Management & Reporting Guidance: We help you maintain accurate financial records and comply with reporting requirements.
• Membership Management Support: We guide you on managing members and shares.
• Meeting Compliance: We ensure your AGMs and other meetings are conducted according to the law.

8. What are the benefits of choosing The CauseConnect Team?

• Expertise: Our team has in-depth knowledge of Nidhi regulations and compliance.
• Time Savings: We handle the complexities, freeing you to focus on your business.
• Peace of Mind: We ensure your Nidhi Company operates legally and ethically.

9. How much do your services cost?

We offer competitive and transparent pricing. Contact us for a free consultation and a personalized quote based on your needs.

10. How do I get started with The CauseConnect Team?

Contact us today!

Sincerely,

The CauseConnect Team
+91 8076222021

 WhatsApp: https://wa.me/918076222021
causeconnect@trustngoprojects.org
https://trustngoprojects.org/ngo-support/