Worried about Register Nidhi Company in Chennai? Not sure about what a Nidhi Company cannot do? Here come take a look and kick all your fears goodbye. Register your Nidhi Company today with LegalRaasta.
What are the restrictions on a Nidhi Company?
- Business Restrictions:
Nidhi Companies are strictly prohibited from engaging in the following types of businesses:
The business of chit fund, hire purchase finance, leasing finance, insurance or acquisition of securities issued by any body corporate. Nidhi Companies cannot carry on any business other than the business of borrowing or lending in its own name.
- General Restrictions:
- Nidhi Companies cannot issue any shares, debentures or any other securities by any name or in any form whatsoever.
- Nidhi Companies cannot open a current account with its members. Please note, there is a restriction on current account that means you can still open a savings account with the members.
- Nidhi Companies cannot issue or cause to be issued any advertisement in any form for soliciting deposit.
- Nidhi Companies cannot pay any brokerage or incentive for mobilizing deposits from members or for deployment of funds or for granting loans.
Registration of Nidhi Company with the help of LEGAL RAASTA in CHENNAI.
First of all, go to LegalRaasta and click the ‘Form a business’ option. Next click on “Nidhi Company” and the process begins.
Fill in the text boxes with your contact details and click on proceed.
Step 02: Filling in the Nidhi Company Information:
Fill in the name of your company. The name you fill must be the exact name, as you want it to appear in the Certificate of Incorporation. We suggest filling in 2 alternate names in case of rejection by the Ministry of Corporate Affairs. This is just in case of rejection, not something that usually happens, still better to be safe than sorry. The 2 alternate names will be used in their order of preference. You must think carefully before adopting a name because all and sundry names cannot be allowed. There is a list of undesirable names that cannot be used. A proposed name will be considered to be undesirable if it is identical with or it too closely resembles the following:
- Names of existing companies and LLPs or names approved by the Registrar of Companies and LLPs.
- A registered trademark or a trademark for which registration has been applied for and used or owned by others.
- Names are given under and violating the Emblems and Names (Prevention of Improper use) Act, 1950. Click Here to check the names. (See the Schedule)
- Foul words or phrases
- Words or phrases which are used as a slur and are offensive to a particular group of people.
- Names which have the words “British India”.
Generally, just ensure that the names do not violate any laws.
Then, you have to fill in the address that you want to use as the registered address of the Nidhi company. Then select the State as “Tamil Nadu” and fill in the correct Pin code. Then click “Next” and you will be redirected to the Director details page.
Step 03: Filling Director Details:
On the next page, you can fill in the details of all the directors of the company. The name, full address, contact number and email ID of all the directors needs to be filled. Below is a screenshot of the Director details for 3 directors (minimum 3 directors are required for a Nidhi Company). Similarly, director details can also be filled with 4 or 5 directors.
Step 04: Total Capital and Profit Sharing Ratio:
The total capital refers to the entire amount of money that will be invested by the directors into the Nidhi Company. After that, you have to fill in the capital/profit sharing ratio. This means the ratio in which the directors have contributed capital to the company. For e.g. two directors have contributed capital amounting to Rs.5,00,000 (Rs.3,00,000 by A and Rs.2,00,000 by B), therefore the capital/profit sharing ratio can be represented as 3:2. Then click “Next” and you will proceed to the “Pricing and Packages” page.
Pricing and Packages:
There are two major types of packages, they are Basic and Standard.
What is offered:
- DIN for every director (whether 3 or 4 or 5)
- Digital Signature for every director (whether 3 or 4 or 5)
- Name search & approval
- Memorandum of Association (MOA) / Articles of Association (AOA)
- Registration fees
- Nidhi Company PAN and TAN Cards
The Standard Package includes, in addition to all of the above, the issue of shares for a maximum of 100 shareholders.
Besides, apart from these, you can also apply for other services like Trademark, Logo Design, Stationery (Letterhead, Visiting cards, Company Stamp), Domain Name and Website Creation.
The payment for a different number of directors (3 or 4 or 5) is different and additional charges depending on the Package (Basic or Standard) and, whether you have opted for any additional services, will be levied. The additional charges for these services have been clearly stated. Furthermore, a discount of Rs.500/- is provided for payment of the entire fees at once.
Step 05: Payment of your chosen Package:
After, clicking on “Next”, you will be taken to the payments option page. We provide a variety of payment options. You can choose from Netbanking (EBS Payment Gateway)/Debit or Credit Card, EMI, Bank Transfer (IMPS, RTGS, NEFT), and your choice of mobile wallet (Mobikwik, PayU, Instamojo). Additionally, you can also pay from your Paytm wallet by speaking to our sales executives on the phone. You can also apply your valid discount coupon if any.
Now click “Next” and you will be redirected to the “Billing Details” page.
Given below is a table explaining the pricing of all the available packages:
|Number of Directors||Basic Package||Standard Package|
|3||Pay Rs.64,999/- (You save Rs.500)
Pay Rs.14,999/- Now and (Balance Rs.51,000/- later)
|Pay Rs.1,04,999/- (You save Rs.500)
Pay Rs.24,999/- Now and (Balance Rs.81,000/- later)
|4||Pay Rs.66,999/- (You save Rs.500)
Pay Rs.15,999/- Now and (Balance Rs.52,000/- later)
|Pay Rs.1,06,999/- (You save Rs.500)
Pay Rs.25,999/- Now and (Balance Rs.82,000/- later)
|5||Pay Rs.68,999/- (You save Rs.500)
Pay Rs.16,999/- Now and (Balance Rs.53,000/- later)
|Pay Rs.1,08,999/- (You save Rs.500)
Pay Rs.26,999/- Now and (Balance Rs.83,000/- later)
The cost of any add-on services will be extra. The Pricing for the same has been given below:
|3.||Stationery (Letterhead, Visiting Card, Company Stamp)||Rs.1500/-|
Step 06: Billing Details:
Please provide your billing details. This is because your billing details might be different from your registration details. After clicking on “Submit”, you will be redirected to the appropriate payment gateway for secure payment.
Step 07: Work Completion:
When you have filled the registration form, your payment is successful and you have submitted the required documents, your Nidhi Company incorporation process will start. We will provide you with the DSCs and DINs within 3 working days. Next, the details provided by you will be verified by our experts and name approval, from the MCA, will be applied for. Further, all other documents will be prepared for filing. This will take 2 working days. After the documents are approved by you, the filing process will take 6 working days. Once your Nidhi Company is incorporated, we will send you all the documents and the DSCs.