Nidhi Company Registration in Coimbatore
Nidhi Company registration in Coimbatore affordably with Earnlogic Consultants. Also known as Mutual Benefit Companies, Nidhi companies aim to cultivate saving habits among members. They operate for and by their members, borrowing and lending funds internally.
Nidhi companies with online Nidhi company registration in Coimbatore function by borrowing from and lending to members, accruing interest for growth. This cycle aids in building a reserve using member deposits, generating profits from interest earned. Members can deposit or borrow funds whenever needed.
To incorporate under the Act, a Nidhi must be a public company with a minimum equity share capital of five lakh rupees. Post-Act commencement, no Nidhi can issue preference shares.
While a category of Non-Banking Finance Company, Nidhi Companies don't have direct RBI regulations. However, the RBI holds authority to issue directives regarding their deposit activities. Each deposit holder in a Nidhi must receive a minimum of ten equity shares, or the equivalent of one hundred rupees. Savings and recurring deposit account holders must hold at least one equity share worth ten rupees.
Advantages of Nidhi Company Registration in Coimbatore
- Limited Liabilities:
Limited liability refers to restricted responsibilities. In simple terms, it confines liabilities to the total investment made in the company. Personal assets remain unaffected by the company's debts. - Fund obtainability:
Members contribute funds, which the company uses to offer loans at simple interest rates. - Legal Existence:
A Mutual Benefit society operates as a distinct legal entity. It stands apart from its members. The company can own assets, conduct transactions, and bear debts in its name, ensuring a separate legal identity.
Documents Required For Nidhi Company Registration in Coimbatore
- PAN card copies of directors
- Passport-sized photos of each director
- Aadhaar card or Voter ID proof
- Copy of rental agreement
- Utility bills (electricity, water, etc.)
- Copy of property papers
- NOC from the registered office landlord.
These documents are necessary for the Nidhi company registration process.