Nidhi Company Registration In Mysore
Incorporating a Nidhi Company in Mysore requires at least 7 members out of which three should be the designated directors. The Nidhi Company must acquire at least 200 members within one year of commencement. For registering a Nidhi Company in Mysore it is necessary to first incorporate into a Limited Company under the Companies Act, 2013.
While Registering a Nidhi Company in Mysore it is necessary to ensure that the objectives that are mentioned in the Memorandum of Association are to cultivate the habit of thrift and savings among the members, receiving and lending to the members for the mutual benefit.
Post incorporation of a Nidhi Company that is registered in Mysore the company should meet the following :
- Not have less than two hundred shareholders (members)
- Have net-owned funds of Rs10 lakh rupees or more.
- The encumbered deposit should not be less than 10% of the outstanding deposits.
- Have a ratio of the Net owned funds to deposit of not more than 1:20.
Compliances for Nidhi Registration in Mysore
After the registration of a Nidhi Company in Mysore is done there are different compliances with the applicant must be aware of:
Form NDH 1
The list of members has to be submitted within 90 days of incorporation.
Form NDH 2
Form NDH 2 is to be filed when there is an extension of the request to meet the target of 200 members.
Form NDH 3
Form NDH 3 filing is done along with Form NDH 1.
The profits and the loss statement and the balance sheets are to be submitted as per the requirement of the Company on an annual basis. This is done along with form AOC 4.
A Nidhi Company is required to file Income tax returns as per the Income Tax Act requirements.
A Nidhi Company must have Net Owned Funds that are more than Rs.10 lakh and the ratio is supposed to be in proportion 1:20 basis.
Major advantages of registering as a Nidhi Company in Mysore
The main objective of registering a Nidhi Company in Mysore is to raise funds from the Public. This is also a type of NBFC that is carrying out activities like accepting deposits from members. So a Nidhi Company registered in Mysore can raise funds easily.
As the Companies that are registered under Section 406 of the Companies Act 2013 this type of entity is based on the mutual benefit principle. Here the primary beneficiaries are the members of the shareholders of the entity, so a Nidhi Company can provide loans to the members easily.
An applicant can select a group of members to carry this process. Once a Nidhi Company is registered there is no need to involve any external management.
The compliances are few as compared to other forms of entities. Under the RBI Act, the Nidhi companies are exempted from carrying out the compliances.
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