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Nidhi Company is most popular form for giving small loan to its members and accept deposits from its members. It is also called mutual benefit Company. For Providing Loan and Accepting Deposits you have to register Nidhi Company and with the Capital of Nidhi Company subject to Condition provided in Nidhi Rules you can lend money and accept deposit from Its members.
Nidhi Company will always be public limited company and its name should end with ‘Nidhi Limited”, Presently Nidhi Company is becoming very popular for lending business.

Nidhi Company Registration Procedure:

  1. Obtaining DSC for All the members and Directors
  2. Obtaining DIN for All the Directors
  3. Application for Approval of name
  4. Preparation and Drafting of Incorporation documents
  5. Signing of Incorporation Documents
  6. Application for Incorporation of Nidhi Company with ROC
  7. Approval by ROC, after verifying all  the required documents and information.

Basic Features about Nidhi Company for Registration:

1. Required Minimum 3 Directors and 7 Shareholders
2. Can Accept Deposits From its members
3. Body Corporate and Benifit of Limited Liability
4. Can Land Money to its Members
5. Can Provide Locker Faciltity to its members
6. Required to have Minimum 200 members within one Year
7. Best suited for Small lending and desposit Business
8. Minimum Capital Rs. 5 Lakh at the time of Incorporation and Thereafter required to have Rs. 10 Lakh.

Documents Required For Nidhi Company Registration

1. PAN of all Directors
2. Voter ID/DL/Aadhar Card/Passport of All Directors /members
3. Passport Photo of all Directors
4. Latest Bank Passbook/Statement or Electricity/Boradband Bill
5. Latest utility bill (electric bill/telephone bill) and Rent Agreement or latest tax receipt/ownership deep of the property for the property to be used for registered office

Best Software for Nidhi Company in India

How To Add Members In Nidhi Company

As Nidhi Company can provide loans to its members and can also accept deposits from its members only in accordance with the requirements of Nidhi Rules. Nidhi Company is Public limited Company so at the time of formation of Company minimum seven members are required and as par requirements of Nidhi Rules and Companies Act, 2013 a Nidhi Company should have 200 members within 1 year from the date of incorporation. Now it is important that how members are added in the Nidhi Company so Nidhi can provide loans to its members and accept deposits to its members.

There are two ways through which members are added in the company:

#1. By Way Of Allotment Of New Shares:

Nidhi Company may allot new shares to its members as par the provisions of the companies act, there is present exemption through which section of right issue and private placement is not applicable to Nidhi Company, so the shares can directly be allotted by Board Of Directors of the Company through a resolution passed. It is to be noted that no of shares allotted should not exceed authorized share capital of the Company.

#2. By Way Of Transfer Of Shares Of Existing Members :

As Nidhi company is a Public Limited Company , the shares of public limited company are freely transferable and existing shareholder of Nidhi Company may transfer his shares to another person , in this case he will also become member of nidhi company once his name is entered in the register of members.

Form For Transfer Of Shares :  Form SH-4

Net Owned Funds Requirements In Nidhi Company:

Every Nidhi Company is required to have Minimum Net Owned Funds of Rs. 10Lakh all the time.

Meaning Of Net Owned Funds As Par Nidhi Rules :

Aggregate Amount of paid up equity share capital and free reserves as reduced by accumulated losses and intangible assets appearing in the last audited balance sheet, provided the amount representing the proceeds of issue of preference share shall not be included for calculating net owned funds. 

Nidhi Company – ROC Annual And Half Yearly Filings:

Every Nidhi Company is required to comply with provisions of Companies Act, 2013 and Nidhi Rules, 2014, as Nishi Company is Public Limited Company is required to follow all the provisions applicable to Public Limited Company unless exempted from compliance of specific section with or without any modification.

ROC Compliance As Per Nidhi Rules, 2014 :

Filing Of Form NDH-3 :Half Yearly Return By Nidhi Company

Every Nidhi Company is required to File Form NDH-3 with ROC within 30 days from the close of each half year. i.e. 30th April for the half year ending on 31st March and 30th Oct for the half year ending on 30th Sept. Form NDH-3 contains the details of Number of Members admitted during the half year, number of members ceased to be members and total number of members as on the date, Loan granted by Nidhi company along against the particular security and Deposits accepted by the Nidhi company form its members. Form NDH-3 should be certified by Company Secretary of CA , CMA in Practice.

Filing Of Form NDH-1 : Yearly Return By Nidhi Company

Every Nidhi Company is required to file Form NDH-1 with ROC within 90 days form  the close of Financial Year, this form contains all the details regarding the members, loans , deposits, reserves etc for the full financial years.

What Nidhi Company Cannot Do As Par Nidhi Rules : 

  • A Nidhi Company shall not carry any chit fund, hire purchase finance leasing finance insurance or acquisition of securities issued by any Body corporate
  • Nidhi Company is not allowed to issue any kind of preference shares or any debt instruments by any name whatsoever.
  • Nidhi company is prohibited to open any current account with its members
  • Nidhi company is prohibited to do any compromise or arrangement or takeover unless it is passed by a Special Resolution in the General Meeting and also obtained the previous approval from the Regional Director having jurisdiction over such nidhi company
  • Carry on any business other than the business of borrowing or lending in its own name
  • Nidhi company is prohibited to accept deposits or lend amount other than its members
  • Pledge any of the assets lodged by its members as security
  • Nidhi company is prohibited to take deposits or lend money to any Body corporate
  • These companies are prohibited to enter into any partnership arrangement in its borrowing or lending activities
  • Nidhi company prohibited to issue any advertisement in any form for soliciting deposits

Minimum Members And Net Owned Funds Requirements For Nidhi Company :

  • Every Nidhi Company Should have Minimum 200 members within 1 years from the date of incorporation and all time thereafter
  • Every Nidhi Company should have Net-owned funds of Rs. 10 Lakh within 1 year from the date of incorporation.

How Much Loan A Nidhi Company Can Give To Its Members :

  • Rs. 2 Lakh where a total amount of Deposits form its members is less than Rs. 2 crore
  • Rs. 7.50 Lakh where the total amount of Deposits form its members is more than Rs. 2 crore but less than twenty crore rupees
  • Rs. 12 Lakh where the total amount of Deposits form its members is more than Rs. 20 crore but less than Fifty crore rupees
  • Rs. 15 Lakh where the total amount of Deposits form its members is more than Rs. 50 crore
  • No fresh loans exceeding 15% of above can be if Nidhi is not profitable for continuously three preceding financial years.
  • Members who have taken a loan from Nidhi and defaulted in repayment of such loan shall not be allowed to take fresh loans form Nidhi.
  • Only Members of Nidhi Company can take loan form Nidhi Company

How Much Interest Can Be Charged On Loans By Nidhi Company

The rate of Interest to be charged on loan given by Nidhi shall not go above seven and a half percent(7.5%) above the highest rate of interest offered on deposits by Nidhi.

i.e.7.5% the gross margin that a Nidhi Company is able to earn from the operations.


Annual Filing Of Financial Statements And Annual Return By Nidhi Company :

Form AOC-4: Filing Of Financial Statements

Every Nidhi company is required to file its Financial Statements, along with Notice calling General Meeting, Directors Report, Auditors Report and Balance sheet to ROC within 30 days from the date of Annual General Meeting of the Company.

Form MGT-7: Annual Return

Every Nidhi company is required to file its Annual Return along with List of members of Nidhi Company within 60 days from date of Annual General Meeting.

Reporting Of Resolutions :

As a Public Limited Company Nidhi Company is required to File form MGT-14 for Disclosure of Directors interest, Approval of Financial Statements and Directors Report.


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Nidhi Company is Finance Company which lends money and accept deposit form its members only. Every Nidhi Company has to follow Provisions of Nidhi Rules and Companies Act, 2013. It is very important that all the procedure relating to admission of members, allocation of shares, creating schemes for Loans, disbursements of loans, Opening of Savings Account, RD Account and FD Account are carried out in simple and hassle-free manner that you feel very little need for managing legal compliance and focus on your business.

Fastlegal Nidhi Software :

Fastlegal has its own in-house Nidhi Software which was built by top it experts and Company Secretaries to its clients, Fastlegal Nidhi Software has all the features that are required for finance business. following are main features of Fastlegal Nidhi Software :

  1. Member Addition and Reporting in Single Click
  2. Share Allotment and Transfer to members
  3. Automatic Share Certificate Printing
  4. Automatic Share Transfer form Printing
  5. Member Application Form Printing
  6. Loan Account Opening and Management with Automatic EMI Scheduler and informer
  7. Savings, RD and FD account Opening with Bond and Statement Printing
  8. SMS Gateway
  9. Compliance Alerts at every step
  10. Automatic Half Yearly and Yearly Return Preparation
  11. Real-Time update for change in Nidhi Rules and automatic updation
  12. Data Backup and Restore Options
  13. Facility to create Multiple Users for Different Roles
  14. Approval Facilities
  15. KYC Uploading Facilities …. many more

Get free Demo For Fastlegal Nidhi Software 

Call : 9782280098 or email us at mail@fastlegal.in


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RESOLVED THAT Director of the company proposes Mr. ____________________ to appoint as the Director of the company.”
FURTHER RESOLVED THAT for the purpose of giving effect to this resolution, any Director of the Company be and is hereby authorized, on behalf of the Company, to do all acts, deeds, matters and things as deem necessary, proper or desirable and to sign and execute all necessary documents, applications and returns for the purpose of giving effect to the aforesaid resolution.

Certified to be true.


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NBFC stands for Non-Banking Financial Companies which means that Companies dealing with various Financial Activities like Lending of Money, Investment in Securities. Assets Finance Company, Merchant  Bankers, Insurance Companies, but not all of these are regulated by RBI, RBI has exempted Companies which comes under the jurisdiction of a separate regulator like SEBI, IRDA.

NBFC companies come under the jurisdiction of Reserve Bank Of India (RBI)  and RBI licence would be required for before carrying out any business activities of NBFC.

What is the difference between banks & NBFCs?

NBFCs lend and make investments and hence their activities are akin to that of banks; however, there are a few differences as given below:

i. NBFC cannot accept demand deposits;

ii. NBFCs do not form part of the payment and settlement system and cannot issue cheques drawn on itself;

iii. deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is not available to depositors of NBFCs, unlike in case of banks.

Basic Requirements for to get RBI Registration for NBFC :

  • Should be a Company Registered with Companies Act, 2013
  • Minimum net Owned Funds should be not less than 200 Lakhs ( 2 Crore )
  • Sound Profile of Promoters, It is advisable to include Professionals like Company Secretaries, Chartered Accountants having experience in NBFC Activities.
  •  NBFC Cannot accept deposits unless it is permitted by RBI, NBFC’s accepting deposits will be known as Deposit-taking NBFC.

Procedure for registration of Non-Banking Financial Company with RBI Licence:-

1. Register a Company

Only Companies Registered under Companies Act can apply for NBFC license to RBI, it is important to note that the main object of the NBFC company must be of to carry on a business of NBFC, so it is important to draft Memorandum and Articles of Association in line with these objects.  A Company can be either be registered as Private Limited Company or Public Limited Company. At the time of formation of Company, a declaration is required to be submitted that the company will not carry out business activities unless the prescribed approval from the sectoral regulator is obtained.

2. Open Bank Account and Deposit Subscription Amount

Once the Company registration process is complete a Bank Account is required to be opened and subscription amount is required to be deposited in the companies Bank Account. Please note that promoters cannot carry out any business activity unless the license is obtained from the RBI.

3. Increase Authorised and Paid up Share Capital of the Company

As the basic required to apply RBI license is to have minimum Net owned funds of Rs. 200 Lakhs, the Company must have such capital at the time for applying for RBI Licence, to fulfil this requirement company must have this much of capital. Here we need to increase this capital of the company to Rs. 2 Crore and amend the MOA of the company accordingly.  To increase the paid-up share capital of the Company the company is required to issue shares to existing shareholders or new shareholders either by way of a rights issue or private placement.

4. Make a Fixed Despot of Rs. 2 Core with the Bank and obtain Fixed Despot Certificate

After Increase of paid-up share capital, the company will be having funds of Rs. 2Crore, that entire amount should be deposited with the Bank in the form of Fixed Deposit.

5. Making required set of all the Documents to Submit Online and Offline application :

  1. Certified copies of Certificate of Incorporation and Certificate of Commencement of Business in case of public limited companies.
  2. Certified copies of extract of only the main object clause in the MOA relating to the financial business.
  3. Board resolution stating that:
    a) the company is not carrying on any NBFC activity/stopped NBFC activity and will not carry on/commence the same before getting registration from RBI
    b) the UIBs in the group where the director holds substantial interest or otherwise has not accepted any public deposit in the past /does not hold any public deposit as on the date and will not accept the same in future
    c) the company has formulated “Fair Practices Code” as per RBI Guidelines
    d) the company has not accepted public funds in the past/does not hold any public fund as on the date and will not accept the same in the future without the approval of Reserve Bank of India
    e) the company does not have any customer interface as on date and will not have any customer interface in the future without the approval of Reserve Bank of India
  4. Copy of Fixed Deposit receipt & bankers certificate of no lien indicating balances in support of NOF
  5. Banker’s report in respect of applicant company, its group/subsidiary/associate/holding company/related parties, directors of the applicant company having substantial interest in other companies The Banker’s report should be about the dealings of these entities with these bankers as a depositing entity or a borrowing entity.
    Note: Please provide bankers report from all the bankers of each of these entities and provide the
    report for all the entities. The details of deposits and loans balances as on the date of application
    and the conduct of the account should be specified.

 

Fastlegal Provides NBFC Registration Services All over India, Please Call at 9782280098 or Place a Request for NBFC Registration


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Provident Fund (PF) Registration is very important for every organization with respect to employee welfare as the provident fund is Social Security initiative that the employees of the Company or Firm get into habits of savings and accumulate funds, EPFO contribution also gets benefits under Section 80C of the Income Tax Act.

Who is required to Obtain Provident Fund (PF ) Registration :

Provident Fund Registration is mandatory for every Company/ LLP/ Partnership Firm/ Proprietorship Firm or any other organization which employs more than 20 individuals, including contractual and permanent employees.

Voluntarily Registration of Provident Fund (PF) can also be obtained by the Company/LLP/Partnership Firm/ Proprietorship Firm which does not have the minimum 20 Employees.

Companies which are not registered under Provident Fund (PF) and are having employees more than 20 are required to register within 1 Month form the date of exceeding the limit of employees and can also be registered after 1 month by paying penalties applicable.

Information Required for Registration under Provident Fund (PF) :

Every Company/LLP/Partnership Firm/ Proprietorship firm are required to Provide following Information for Registration under Provident Fund :

  • Name and address of Company/LLP/Partnership Firm/ Proprietorship firm
  • Office details of Company/LLP/Partnership Firm/ Proprietorship firm
  • Mention date of incorporation/registration of company
  • Fill up details of employees – total employee strength
  • Activity the business/enterprise is involved in – i.e. manufacturing, production, service, etc
  • Owner details, including designation and address of Directors and partners
  • Particulars related to wage component of employees
  • Details of bank with whom company has banking relationship
  • PAN details
  • Basic details of the employee (name, date of joining, salary, etc.)

Documents Required for Provident Fund (PF) Registration:

Employers are expected to furnish certain documents as proof in order to successfully register EPF, a list of which are mentioned below.

  • Copy of Certificate of incorporation, partnership deed if the company is a registered partnership firm or GST Registration Certificate
  • Public and Private Limited Companies need to submit a copy of memorandum and Articles of Association
  • PAN details of Company
  • Proof of incorporation – first sales invoice/ license issued by competent authorities
  • No of employees
  • Cancel Cheque or Bank statement
  • Email id and Mobile Number

Fastlegal provides Provident Fund Registration Services all over India. To Avail Fastlegal Services Please call on 9782280098 /email us at mail@fastlegal.in

 


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A Foreign Portfolio Investor (FPI) can Setup Proprietary trading firm India. The Foreign Portfolio Investors in India are divided in India in Three Categories :

Categories for Foreign Portfolio Investors (FPI) : –

Category I foreign portfolio investor” which shall include Government and Government related investors such as central banks, Governmental agencies, sovereign wealth funds and international or multilateral organizations or agencies.
Category II :  In this category FPI like  appropriately regulated Mutual Funds, Investment trusts, insurance/reinsurance companies,  banks, asset management companies, investment managers/ advisors, portfolio manager,  university funds and pension funds etc.
Appropriately regulated ” if it is regulated or supervised by the securities market regulator or the banking regulator of the concerned foreign jurisdiction, in the same capacity in which it proposes to make investments in India.
Category III :  foreign portfolio investor” which shall include all others not eligible under Category I and II foreign portfolio investors such as endowments, charitable societies, charitable trusts, foundations, corporate bodies, trusts, individuals and family offices.
Every Foreign Portfolio Investor is required to obtain Registration for FPI with Designated Depository Participant (DDP) on Behaf of SEBI.

Procedure to get registration :

1. Appoint a legal representative: 

Appoint a legal representative in India to fill out the forms required by the regulatory authorities. The role of legal representative can be played by any financial institution authorized by the Reserve Bank of India.

Choose at DDP to get registered as FPI. The following is the link of List of DDPs:

http://www.sebi.gov.in/cms/sebi_data/attachdocs/1401427321828.pdf

2. Appoint a Tax adviser: 

A tax advisor will help you comply with all Tax obligations that will arise from your activities in India.

 3. Appoint a Domestic Custodian

Appoint a domestic custodian and before making any investments in India, enter into an agreement with the domestic custodian providing for custodial services in respect of securities.

Domestic Custodian means any entity registered with SEBI to carry on the activity of providing custodial services in respect of securities.

4. Appoint a designated Bank

Once you are granted registration as an FPI, you will need to appoint a Designated Bank.  The Designated Bank will open and maintain a foreign currency account and/or a Non Resident Special Rupee Account for you.

Designated Bank means any bank in India which has been authorized by the Reserve Bank of India to act as a banker to FPIs.

5. Appoint a trading member: 

A Trading member will execute trades for the FPI. An FPI can have multiple TM’s

6Appoint a clearing member: 

Clearing member does the confirmation of trades. Clearing through single clearing member. CM–CP Agreement executed with the CM to get CP Code. CP code facility (can use existing CP code) or signing of agreement.

7. Appointment of a Compliance Officer

Every FPI is required to appoint a compliance officer who shall be responsible for monitoring the compliance of the Act, rules and regulations, notifications, guidelines, instructions etc. issued by the Board or the Central Government.

 

Fastlegal Provides Advisory Support and help you in getting the FPI Registration in India, Please email us your requirements at “mail@fastlegal.in” or Place your request below:


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Every Company in India shall have at least one director who stays in India for a total period of not less than one hundred and eighty-two days during the financial year. This means every Company should have Resident Director on its Board.

The Wholly Owned Subsidiary Companies only with foreign Directors are now Compulsory Required to have  at least one Director on its Board.

Place your Request for Nominee Director Appointment Services by Fastlegal for foreign Subsidiary Companies in India

 

 

 


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LLP closer Procedure under Fast Track Exit Scheme, for that your LLP must meet certain conditions as par recent rules notified by Ministry of Corporate Affairs. Here are the details of  conditions required to be fulfilled by LLP

Step by Step Procedure for LLP Closer under Fast Track Exit Scheme :

  1. Make Sure that LLP has Nil Assets and Nil Liabilities
  2. Make Sure that the Limited Liability Partnership has not commenced business or where it commenced business, it ceased to carry on such business from a particular date.
  3. Make sure that the limited liability partnership has no liabilities and indemnifying any liability that may arise even after striking off its name from the Register
  4. A declaration that the Limited Liability Partnership has not opened any Bank Account and where it had opened, the said bank account has since been closed together with a certificate(s) or statement from the respective bank demonstrating closure of Bank Account.
  5. A declaration that the Limited Liability Partnership has not filed any Income-tax return where it has not carried on any business since its incorporation, if applicable.(c) a copy of the acknowledgment of the latest Income-tax return filed under the Income-tax Act,1961
  6. LLP is required to file form 24 with ROC.
  7. LLP is required file overdue returns in Form 8 and Form 11 up to the end of the financial year in which the limited liability partnership ceased to carry on its business or commercial operations before filing Form 24.

Explanation.—The date of cessation of commercial operation is the date from which the Limited Liability Partnership ceased to carry on its revenue-generating business and the transactions such as receipt of money from debtors or payment of money to creditors, subsequent to such cessation will not form part of revenue-generating business.”

 

Read More :

How to File LLP Annual Returns and Statement of Accounts Online with Fastlegal


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Every Private Limited Company is required to make compliance of provisions of Companies Act, 2013 and rules made thereunder. There are many compliances that every private limited company is required to follow and are required to maintain various statutory registers and records all the time. Here we will discuss the Compliance requirements for Annual Filing of Private Limited Company to ROC in various forms and required documents that are required to be attached with the e form that is required to be filed with ROC.

Documents required to be prepared for ROC Annual Filing : –

  • Directors Report: Directors of every company is required to prepare Directors Report, Directors report should contain Information and Disclosures regarding Financial Summary of Company, Meeting of Board of directors held during the year, Auditors, outlook towards company business, information about subsidiary and associate companies, Directors responsibility statement, Particulars of loans, guarantees or investments, transactions with related parties, dividend,amount transferred to reserve etc.
  • Financial Statements: Financial Statements means Balance Sheet, Profit and Loss Account and Cashflow Statement and Statement of Change in Equity.
  • List of Shareholders of the Company

E Form Required to be filed for ROC Annual Filing :

  1. Form ADT-1: ADT-1 is required to be filed when the auditor is appointed in the company, in accordance with the provisions of the companies act auditor is appointed for the period of 5 years subject to ratification by members in every Annual General Meeting of the Company. So This e form is required to Filed once in every five years.
  2. Form AOC-4: In This e form brief details of Financial Statements are filed and Financial Statements including Directors report are attached.
  3. Form MGT-7: Form MGT-7 is an Annual Return of the Company and details regarding Directors, Directors Shareholding, Promoters, Promoters Shareholding, Capital Structure of the Company, Details of Transfer of Shares, Certificate of Company Secretary regarding Compliance of Provisions of Companies Act, List of Shareholders of the Company including number of shares held by them.
  4. Form AOC-4 CFS: This e Form is required to be filed by Companies who are required to prepare consolidated Financial Statements.
  5. Form AOC-4 XBRL: This E Form is required to be filed by Companies who are required to file Financial Statements in XBRL.

Fee For Filing E Forms with ROC :

Rs. 300/400/600 per eform depending on the Authorised Share capital of the company. Normally with 1 Lakh Capital, it will be Rs. 300 if filed within 15 days for ADT-1, 30 days for AOC-4, 60 days for MGT-7 from the date of AGM.

 

Private Limited Company ROC Filing. Annual Return Filing Support from Fastlegal Team Members at 9782280098 or Place your request by Filing details below:


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Bandhan Bank Ltd. is an Indian banking and financial services company headquartered in Kolkata, West Bengal. Bandhan, which started as a micro-finance company in 2001, received banking license by Reserve Bank of India in 2014

 How to Apply for an IPO of Bandhan Bank Limited IPO:

1. You need to have DEMAT Account and Trading Account with Depository and stockbroker  to apply for an IPO
2. Login to your Internet Banking and Add click on Investment Option Tab
3. Find ASBA Option, Some banks directly show ASBA option

What is ASBA:

ASBA means application supported by blocked amount, in this case when you apply for an IPO the amount lying in Bank Account for the amount IPO will be Blocked until the allotment Date,  Once you get the confirmation on allotment of IPO than the said amount will be deducted from your bank account  and if you did not get the allotment than the blocked amount will be released.
4. Add your DP Id along with PAN and Other Details: you will find your DP id with your broker if you don’t have, Contact your broker.
5.Click on Ongoing Issues or Manage applications
6. Click on the current issue Tab and fill the Bid Details as given in the picture:
7. Select Investor category, Bid amount and DP account and Bank Account and fill bid quantity and bid price.
8. Click on the compute button and then authenticate the transaction with Password and OTP and Submit the Application.
If you need any help, Please do comment in the comment box

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Bharat Dynamics Ltd.’s initial public offering as the government looks to part-sell its stake in the missile maker to raise up to Rs 960 crore.

The government will sell 2.24 crore shares, or 12.25 percent stake, at Rs 413-428 apiece in the three-day offer.

 How to Apply for an IPO of Bharat Dynamics Limited IPO:
1. You need to have DEMAT Account and Trading Account with Depository and stockbroker  to apply for an IPO
2. Login to your Internet Banking and Add click on Investment Option Tab
3. Find ASBA Option, Some banks directly show ASBA option

What is ASBA:

ASBA means application supported by blocked amount, in this case when you apply for an IPO the amount lying in Bank Account for the amount IPO will be Blocked until the allotment Date,  Once you get the confirmation on allotment of IPO than the said amount will be deducted from your bank account  and if you did not get the allotment than the blocked amount will be released.
4. Add your DP Id along with PAN and Other Details: you will find your DP id with your broker if you don’t have, Contact your broker.
5.Click on Ongoing Issues or Manage applications
6. Click on the current issue Tab and fill the Bid Details as given in the picture:
7. Select Investor category, Bid amount and DP account and Bank Account and fill bid quantity and bid price.
8. Click on the compute button and then authenticate the transaction with Password and OTP and Submit the Application.
If you need any help, Please do comment in the comment box

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Every Nidhi Company is required to comply with provisions of Companies Act, 2013 and Nidhi Rules, 2014, as Nishi Company is Public Limited Company is required to follow all the provisions applicable to Public Limited Company unless exempted from compliance of specific section with or without any modification.

ROC Compliance as per Nidhi Rules, 2014 :

Filing of Form NDH-3 :Half Yearly Return by Nidhi Company

Every Nidhi Company is required to File Form NDH-3 with ROC within 30 days from the close of each half year. i.e. 30th April for the half year ending on 31st March and 30th Oct for the half year ending on 30th Sept. Form NDH-3 contains the details of Number of Members admitted during the half year, number of members ceased to be members and total number of members as on the date, Loan granted by Nidhi company along against the particular security and Deposits accepted by the Nidhi company form its members. Form NDH-3 should be certified by Company Secretary of CA , CMA in Practice.

Filing of Form NDH-1 : Yearly Return by Nidhi Company

Every Nidhi Company is required to file Form NDH-1 with ROC within 90 days form  the close of Financial Year, this form contains all the details regarding the members, loans , deposits, reserves etc for the full financial years.

What Nidhi Company cannot do as par Nidhi Rules : 

  • A Nidhi Company shall not carry any chit fund, hire purchase finance leasing finance insurance or acquisition of securities issued by any Body corporate
  • Nidhi Company is not allowed to issue any kind of preference shares or any debt instruments by any name whatsoever.
  • Nidhi company is prohibited to open any current account with its members
  • Nidhi company is prohibited to do any compromise or arrangement or takeover unless it is passed by a Special Resolution in the General Meeting and also obtained the previous approval from the Regional Director having jurisdiction over such nidhi company
  • Carry on any business other than the business of borrowing or lending in its own name
  • Nidhi company is prohibited to accept deposits or lend amount other than its members
  • Pledge any of the assets lodged by its members as security
  • Nidhi company is prohibited to take deposits or lend money to any Body corporate
  • These companies are prohibited to enter into any partnership arrangement in its borrowing or lending activities
  • Nidhi company prohibited to issue any advertisement in any form for soliciting deposits

Minimum Members and Net Owned Funds Requirements for Nidhi Company :

  • Every Nidhi Company Should have Minimum 200 members within 1 years from the date of incorporation and all time thereafter
  • Every Nidhi Company should have Net-owned funds of Rs. 10 Lakh within 1 year from the date of incorporation.

How much loan a Nidhi Company can give to its members :

  • Rs. 2 Lakh where a total amount of Deposits form its members is less than Rs. 2 crore
  • Rs. 7.50 Lakh where the total amount of Deposits form its members is more than Rs. 2 crore but less than twenty crore rupees
  • Rs. 12 Lakh where the total amount of Deposits form its members is more than Rs. 20 crore but less than Fifty crore rupees
  • Rs. 15 Lakh where the total amount of Deposits form its members is more than Rs. 50 crore
  • No fresh loans exceeding 15% of above can be if Nidhi is not profitable for continuously three preceding financial years.
  • Members who have taken a loan from Nidhi and defaulted in repayment of such loan shall not be allowed to take fresh loans form Nidhi.
  • Only Members of Nidhi Company can take loan form Nidhi Company

How Much Interest can be Charged on Loans By Nidhi Company

The rate of Interest to be charged on loan given by Nidhi shall not go above seven and a half percent(7.5%) above the highest rate of interest offered on deposits by Nidhi.

i.e.7.5% the gross margin that a Nidhi Company is able to earn from the operations.

 

Annual Filing of Financial Statements and Annual Return by Nidhi Company :

Form AOC-4: Filing of Financial Statements

Every Nidhi company is required to file its Financial Statements, along with Notice calling General Meeting, Directors Report, Auditors Report and Balance sheet to ROC within 30 days from the date of Annual General Meeting of the Company.

Form MGT-7: Annual Return

Every Nidhi company is required to file its Annual Return along with List of members of Nidhi Company within 60 days from date of Annual General Meeting.

Reporting of Resolutions :

As a Public Limited Company Nidhi Company is required to File form MGT-14 for Disclosure of Directors interest, Approval of Financial Statements and Directors Report.

 


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In India NGO can be registered as Section 8 company under Companies Act, 2013 , Trust by executing a trust deed or as Society. Section 8 company is regulated by Ministry of Corporate Affairs  under the provisions of Companies Act, 2013

Meaning of Section 8 Company :

Where the Central Government is satisfied by licence issued in this behalf that a person or association of persons proposed to register a company as limited company

(a) has in its objects the promotion of commerce, art, science, sports, education,research, social welfare, religion, charity, protection of environment or any such other object;

(b) intends to apply its profits, if any, or other income in promoting its objects; and

(c) intends to prohibit the payment of any dividend to its members.

Name of Section 8 Company :

The name of section 8 company should end with words like Foundation, Association, Institution, Federation etc Being a Private Limited Company or Public Limited Company , the Private Limited or Limited words do not form part in the name of section 8 Company.

Types of Section 8 Company :

Company Limited by Shares : Unlike normal Company section 8 company can also be registered by having share capital among its members.

Company Limited by Guarantee without share capital : In this case company can be registered by providing a guarantee amount in its memorandum. As these type of companies are without share capital , there will be equal ownership among the promoters/ members of the company with one vote on each resolution.

Procedure for Registration of Section 8 (NGO) in India

Following are the steps involved in Incorporation of  Section 8 Company in India:

Obtaining Digital Signature:

Digital Signature is required to sign Incorporation application and other forms for regular compliance needs,It is issued by certifying authority (like Sify, ncode etc.). Following are the documents required for obtaining Digital Signature for Directors:

1.) For Indian citizens & residents:

a.) Copy of Pan Card

b.) Copy of Driving license/Passport/Aadhar Card/Voters’ Identity Card

c.) Dully filled and signed Digital Signature Form.

2. For Foreign Nationals:

a.) Copy of Notarized or Appostilled Passport if the country is a party to Hague convention.

b.) Dully filled and signed Digital Signature Form.

 

Documents Required For Section 8 Company Registration :

a.) Copy of Pan Card

b.) Copy of Driving license/Passport/Aadhar Card/Voters’ Identity Card

c.) Latest Bank statement not older than 2 months

d.) Statement of Grounds

e.) work proposed to be done

f.) Proposed Income and Expenditure for next three years

g.) Electricity Bill and Rent Agreement , if rented for the purpose of Registered Office address of the company

Name Approval Application :

Name approval Application in RUN form is required to made to CRC for approval of name of section 8 company.

Application of Obtaining Licence of Section 8 Company from Central Government :

An Application should be made along with necessary documents like Draft MOA , AOA , Statement of Grounds , work Proposed to done , Power of Attorney of Professional , INC-15 etc should be attached along with Application for obtaining licence of Section 8 Company Registration.

 

Filing Of Incorporation Application With Registrar Of Companies:

Once we get licence upon Filing of Form INC-12 than incorporation form is required to e filed with ROC, after uploading and payment of required stamp duty and government fee the incorporation form is accessible to ROC and ROC checks the forms and if everything is allright including name of the Company, the Company is approved by the ROC.

Once the company incorporation form is approved by ROC we get the certificate of incorporation of the Company and company is registered

PAN and TAN:  

We will get the PAN and TAN no along with Certificate of Incorporation of Company.

 


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Private Limited Company is the most popular structure for businesses and startups. Private Limited Company allows outside funding & Foreign Direct Investment easily. Private Limited Companies are required to hold Board Meetings,Register Secured Loans with Ministry of Corporate Affairs,Hold Members Meeting for Important matters,Make complete disclosures about important matters in their Board Report. Due to all these regulatory disclosures and requirments imposed on Private Limited Company by Company Law they tend  to be viewed with more credibility than a Limited Liability Partnership (LLP), One Person Company (OPC), or General Partnership.

Incorporation of Private Limited Company

Following are the steps involved in Incorporation of a Private Limited Company in India:

Obtaining Digital Signature:

Digital Signature is required to sign Incorporation application and other forms for regular compliance needs,It is issued by certifying authority (like Sify, ncode etc.). Following are the documents required for obtaining Digital Signature for Directors:

1.) For Indian citizens & residents:

a.) Copy of Pan Card

b.) Copy of Driving license/Passport/Aadhar Card/Voters’ Identity Card

c.) Dully filled and signed Digital Signature Form.

2. For Foreign Nationals:

a.) Copy of Notarized or Appostilled Passport if the country is a party to Hague convention.

b.) Dully filled and signed Digital Signature Form.

 

Documents Required for Private Limited Company Registration :

1.) For Indian citizens & residents:

a.) Copy of Pan Card

b.) Copy of Driving license/Passport/Aadhar Card/Voters’ Identity Card

c.) Latest Bank statement not older than 2 months

2. For Foreign Nationals:

a.) Copy of Notarized or Appostilled Passport if the country is a party to Hague convention.

b.) and Address proof

Name of Private Limited Company  :

Name of Private Limited Company should be unique that it should not be identical to the name of Existing company or LLP or Trademark in the business class of the company should not be registered or applied in India. We need to search the name thoroughly so that chances of name rejection becomes very low and we get the company approved in the first instance.

Drafting and Signing of Incorporation of Documents :

Now incorporation documents are required to be prepared and   are required to be signed by all the Directors and Subscribers of the proposed Company.

Filing of Incorporation Application with Registrar of Companies:

Once all the documents are signed , a incorporation form is required to e filed with ROC, after uploading and payment of required stamp duty and government fee the incorporation form is accessible to ROC and ROC checks the forms and if everything is allright including name of the Company, the Company is approved by the ROC.

Once the company incorporation form is approved by ROC we get the certificate of incorporation of the Company and company is registered

PAN and TAN:  

We will get the PAN and TAN no along with Certificate of Incorporation of Company.

Pricing for Registration :

Govt Stamp Duty : 1010 ( with 1 Lakh Capital ),  Notery and Stamp on Declaration form Rs. 90 ,  Rs. 700*2= 1400 for DSC and Rs. 5000/- Professional Fee

Total Charges : Rs. 7500/-

 

Place your request for Company registration with Fastlegal or call at 9782280098


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A Nidhi Shall provides loans to its members only.

How much loan a Nidhi Company can give to its members :

#1. Rs. 2 Lakh where total amount of Deposits form its members is less than Rs. 2 crore

#2. Rs. 7.50 Lakh where total amount of Deposits form its members is more than Rs. 2 crore but less than twenty crore rupees

#3. Rs. 12 Lakh where total amount of Deposits form its members is more than Rs. 20 crore but less than Fifty crore rupees

#4. Rs. 15 Lakh where total amount of Deposits form its members is more than Rs. 50 crore

Note : No fresh loans  exceeding 15% of above can be if Nidhi is not profitable for continuously three preceding financial years.

Members who have taken loan from Nidhi and defaulted in repayment of such loan shall not allowed to take fresh loans form Nidhi.


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Every Nidhi Company is required to have Minimum Net Owned Funds of Rs. 10Lakh all the time.

Meaning of Net Owned Funds as par Nidhi Rules :

Aggregate Amount of paid up equity share capital and free reserves as reduced by accumulated losses and intangible assets appearing in the last audited balance sheet, provided the amount representing the proceeds of issue of preference share shall not be included for calculating net owned funds.


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As Nidhi Company can provide loans to its members and can also accept deposits from its members only in accordance with the requirements of Nidhi Rules. Nidhi Company is Public limited Company so at the time of formation of Company minimum seven members are required and as par requirements of Nidhi Rules and Companies Act, 2013 a Nidhi Company should have 200 members within 1 year from the date of incorporation. Now it is important that how members are added in the Nidhi Company so Nidhi can provide loans to its members and accept deposits to its members.

There are two ways through which members are added in the company:

#1. By way of allotment of new shares:

Nidhi Company may allot new shares to its members as par the provisions of the companies act, there is present exemption through which section of right issue and private placement is not applicable to Nidhi Company, so the shares can directly be allotted by Board Of Directors of the Company through a resolution passed. It is to be noted that no of shares allotted should not exceed authorized share capital of the Company.

#2. By way of transfer of shares of existing members :

As Nidhi company is a Public Limited Company , the shares of public limited company are freely transferable and existing shareholder of Nidhi Company may transfer his shares to another person , in this case he will also become member of nidhi company once his name is entered in the register of members.

Form for Transfer of shares :  Form SH-4

 

 


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India is one of the top growing economy in the world in the last decade Foreign Direct Investment by Foreign Nationals and  foreign companies has increased significantly. Every Foreign Entity/ Nationals who intends to setup company in India has to follow the Indians Companies Act, 2013, Foreign Direct Investment Policy (FDI ) and Sector, Goods and Services Tax Act, Income Tax Act and Sector Specific Rules and Regulations like healthcare Company needs drug licences etc.

Investing in India by foreign entities into India is subject to FDI Policy, In India FDI policy has two different routes

  1. Automatic Route

  2. Approval Route

 

#1. Automatic Route : In this route prior approval of Government is not required , only intimation is required to RBI in the Form FC-GPR , FDI Policy provides sectors where FDI is allowed at what percentage of Equity Capital of the Company.

#2. Approval Route : This is route prior approval of government is required, where FDI is allowed under approval route under FDI Policy.

Setting up a Company in India by Foreign Nationals / Foreign Companies entering Indian Markets :

In the recent times Indian has made much simplification process in registering or setting up company in India, Here is step by Step guide on setting up company by Foreign Nationals   :

#1. Getting the Documents Notarized and Apostle:

Indian companies Act requires that the Documents for foreign Directors and Foreign Investor or Shareholders should be noterised and Apostle, Documents may also be signed in India if the applicant is in India on Business Visa.  Documents of foreign entities like 1. Certificate of Incorporation 2. Charter documents like MOA AOA, 3. Resolution by Board of Directors of Foreign Entities should be all in English Language and certified translated copy in English  copy along with Noterised and apostle.

#2. Indian Resident Director:

Indian companies act requires that every company in India should have at least on resident Director who is resident in India during the financial year, we at Fastlegal provides resident Director appointment services in India, you may avail our services if you do not have your own person.

#3. Registered Office Address for Company :

Every Company in India should have Registered Office Address situated in India, you need to have one place as registered Office address. Fastlegal helps in getting the registered Office address.

#4. Name Approval Application

Company name approval application is required to be made for availability of name of company, the company nme should be unique, no other company or LLP or trademark should be already there.

#5. Digital Signatures of Directors and Subscribers:

We need to obtain digital signature in the name of Directors and shareholders from certifying authorities in India , Fastlegal team members helps in getting the DSC. DSC are required for signing the incorporation documents that are required to be submitted to Registrar of companies.

#6. Application for Incorporation of Company :

Once all the required documents of foreign nationals and Indian Resident Director is fine and digital signatures have been obtained than incorporation application is required to be submitted. All applications are verified by the registrar of companies and once he is satisfied with all the particulars of the application, he MCA issues certificate of incorporation to company.

#7. Company Bank Account :

Once we get the certificate of incorporation, we need to proceed to open a bank account in the name of the company.

#8. Funding of Subscription Money into company bank account :

Now subscription money for equity capital is required to be invested into the company by the subscribers to the company.

#9. Reporting of Inward Remittance to RBI within 30 days of receipt of money

#10. Filing of Form FC-GPR to RBI

#11. Application for GST Registration

Documents Requirements for setting up Company in India by Foreign Nationals :

Apostle and Notarized Signed Documents are required for foreign Shareholders and Directors.

For companies it will be :

  • Certificate of Incorporation,
  • Memorandum of Association ,
  • Artiles of Association,
  • Board Resolution duly passed for entering and forming Company in India and

 in case of Individuals : 

  • Passport Copy,
  • Driving Licence and
  • Current Address proof in the form of Bank Statement is required.

 


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