Long before the organised
financial
Institutions started catering to the credit needs of common
people. Nidhis transact only with their
members / Share holders. Accepting Deposits and lending are
permitted
only with their members / Share holders.
Shares of nominal value of a
Rupee are issued for this purpose. These Shares can neither
be traded
in the Stock Exchange nor sold in the
Market.
“Nidhi” is a Hindi word, which means
finance or fund, It is kind of local credit society in the
form of a company,
here both the lender and the borrower used to be from the
same area. Hence, the
background of the borrower was well known to the lender.
Each loan
granted was fully secured as it was backed by tangible
asset, namely
Gold Jewels or Immovable Property. Financial requirements
for family
functions, children’s Education, Marriages, Medical
Treatment and
property Acquisition and the like could he easily met by the
common man
without hassles because of the presence of Nidhis.
Procedure for Registration of
Nidhi Company
- Get Director Identification Number (DIN) and DSC for directors.
- First Get name Approval in the Form of Public Limited Company with adding word Nidhi Limited or Mutual Benefit Company Limited.
- File documents for COI of Public Limited Company Registration in INC-7, INC-22 & DIR-12 with Authorized share Capital of Rs. 10,00,000.
- Filing For Business Commencement.
- Submitting details of minimum 200 members to Nidhi board under MCA/ROC.
