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Nidhi Company in Kerala Overview

A Nidhi company derives its name from the literal meaning of "Nidhi," which translates to "fund," "finance," or "treasure." It is a type of non-banking financial institution in Kerala, primarily involved in borrowing and lending activities within a limited circle of members or shareholders. These companies promote thrift, savings, and fund accumulation among members by accepting deposits and providing loans exclusively to them, fostering mutual benefits.

Benefits of Nidhi Company in Kerala

Limited RBI Regulations: Nidhi companies enjoy regulatory leniency compared to other NBFCs, with fewer requirements imposed by the Reserve Bank of Kerala (RBI) and exemptions from stringent provisions applicable to NBFCs.

Less Risky Proposition: Nidhi companies generally operate within a closed circle of members. This reduces the risk associated with lending and borrowing activities.

Simple Procedure of Formation: The formation process of a Nidhi company is relatively simple compared to other financial institutions. It requires a minimum of seven members and three directors to start with.

Limited Credit Availability: Nidhi companies typically have limited credit availability, as they primarily provide loans to their members only. This focused lending approach allows for better management of loan portfolios and reduces risk.

Reason to choose Nidhi Company registration

Registering as a Nidhi Company offers many benefits. It helps:

Exemptions and privileges granted under the Companies Act, 2013
Streamlined compliance requirements
Simplified transfer of ownership
Tax Benefits
No requirement for an RBI license to operate
Clear objectives facilitating donations and loans

Nidhi Company registration
made easy!

Here’s everything you need to know:

A minimum of seven members, with at least three of them designated as directors.

The company must acquire a minimum of 200 members within one year from the date of commencement.

A minimum share capital of INR 5 lakhs is required for registration.

The Net Owned Funds (NOF) should be increased to INR 10 lakhs within one year from the date of registration.

At least 10% of the company's outstanding deposits should consist of unencumbered term deposits.

The prescribed ratio of NOF to deposits should be 1:20, wherein 10% of the total deposits must be held in a fixed deposit account with a nationalized bank.

Documents required for Directors:

Director's PAN Card

Director's ID Proof (Aadhaar Card, Voter ID, Passport, or Driver's License)

Address Proofs (Latest one-month Savings Bank statement, Telephone Bill, Mobile Bill, or Electricity Bill in the director's name)

Director's latest passport-size photograph

Director's Email IDs

For Foreign Directors: International Passport (mandatory)

Company Documents

Registered Office Address Proof (Latest Power Bill)

No-objection letter from the Landlord

Rental Agreement (if the premises are rented)

Company Email ID

Company Registration Steps:

Step 1: Reserve the company's name

Step 2: Gather the required documents for directors and the company's registered office

Step 3: Obtain a Digital Signature Certificate (DSC)

Step 4: Draft the Memorandum of Association (MoA) and Articles of Association (AoA)

Step 5: Apply for the incorporation of the company

Step 6: Await approval of the company's registration

LLP Registration Steps:

Step 1: Reserve the LLP's name

Step 2: Collect the necessary documents for partners and the LLP's registered office

Step 3: Procure a Digital Signature Certificate (DSC)

Step 4: Submit the application for the incorporation of the LLP

Step 5: Await approval of the LLP's registration

Step 6: Prepare the LLP Deed

Step 7: File the LLP Deed

Why Choose Bizpole for Nidhi Company Registration in Kerala?

- Expertise and Experience: We have years of expertise and experience in Nidhi company registration as well as trust registration in Kerala.

- Comprehensive Services: We offer comprehensive services covering all aspects of Nidhi company registration, i.e. documentation, compliance, and filing. We also offer a trademark registration service.

- Legal Knowledge and Compliance: Our team has a good understanding of the legal framework and compliance requirements related to Nidhi companies.

- Support and Assistance: We offer great support and assistance throughout the registration process.

- Transparent Pricing: We offer clarity on the costs involved and ensure there are no hidden charges.


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Rajabhoomi Spices Opc Pvt Ltd

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Nattukkottai Paradaise Biriyani

I had great pleasure in indulging in business with Bizpole. The whole process of registration went by with ease with the help of their team. Very satisfied with the team at Bizpole.

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