NBFC, Microfinance, Nidhi Company Registration Consultants
NBFC, Microfinance, Nidhi Company Advisory Services
Non-banking financial companies (NBFC) are financial firms that can provide customers with financial goods and services despite not having a banking license. The main areas of NBFC registration services include loans and advances, purchasing shares, hire-purchase, financing leasing, chit funds, etc.). An NBFC has to be different from a bank in various ways, including the inability to accept savings and current account deposits, the inability to issue checks drawn on itself, and the absence of deposit insurance and credit guarantee coverage for its consumers.
JJJ and Company LLP is one of Delhi’s leading Nidhi Company Registration Consultants, offering businesses quick and easy NBFC advisory services.
Cost-effective and Quick: Creating NBFC registration services is less work than registering a small bank. Starting a bank calls for too much time and money.
Simple Registration: NBFC registration services are easy.
Industry Growth Ratio: The fintech industry is expanding as more individuals search for fast sources of finance. Under NBFC registration services will help ambitious company owners earn a good return.
Easy Loan Recovery: NBFCs offer much lower loan amounts and are orderly, so borrowers quickly return the money, which benefits lenders.
Step 1: The initial step is registering a business under the Companies Act of 2013.
Step 2: A company’s net possessed funds must be a minimum of Rs. 2 crores.
Step 3: A corporation must have at least one director from the same background.
Step 4: Registration as an NBFC necessitates a high CIBIL score.
Step 5: Apply to the RBI’s official website.
Step 6: Submit the application and the required documentation.
Step 7: Upon submission of an application, a CARN number will be assigned.
Step 8: Mail a physical copy of the application to the local RBI branch.
Step 9: The company will be granted a license after the application has been examined and verified.
In India, the Reserve Bank of India oversees NBFC regulation (RBI). According to RBI regulations, an NBFC is not allowed to do non-banking financial activities if it does not have a certificate of registration from a bank (with the exception of NBFCs that are not under the control of the RBI) and if it does not have Net Owned Funds of Rs. 2 crores.
The following RBI regulations must be followed by any NBFC created under the Companies Act of 2013 that want to start a non-banking finance business:
According to Section 3 of the 2013 Companies Act, it must be registered.
It must comply with the minimum criterion of Rs. 2 crore in Net Owned Funds (except for NBFC-MFIs, NBFC-Factors, and CIC)
A company’s most recent audited balance statement can be used to compute Net Owned Funds. Total Owned Funds will be made up of Paid-up Equity Capital, Share Premium Account Balance, Free Reserves, and Capital Reserve. Subtract Revaluation Reserves, the book value of Intangible Assets, and the Balance of Accumulated Loss from Total Owned Funds to arrive at Net Owned Funds. The owned funds will be deducted from the net owned funds if the investment in shares of other NBFCs, debentures, and shares of subsidiaries and group companies is greater than 10%.
A certificate from the statutory auditor certifying that the business does not receive or hold the public deposit.
A certificate from the Statutory Auditor certifying the amount of money owned as of the application date is required.
It is necessary to furnish information regarding the bank account, loans, balances, credits, etc.
If applicable, the directors’ and auditors’ reports from the previous three years, an audited balance sheet, and a profit and loss statement must be submitted.
Income tax returns and bank statements that have been self-certified are mandatory.
Projected balance sheets, cash flow statements, income statements, and specifics regarding a company’s future strategy frequently for the subsequent three years.
A certificate from the Statutory Auditor certifying the amount of money owned as of the application date is required.
The bank account, loans, balances, credits, and other relevant information must be disclosed.
If applicable, the directors’ and auditors’ reports from the previous three years, an audited balance sheet, and a profit and loss statement must be submitted.
Income Tax Returns and a self-certified copy of a bank statement are required.
Information regarding the anticipated balance sheets, cash flow statements, and income statements of a business for the subsequent three years.
JJJ and Company LLP is a dedicated Nidhi Company Registration Consultant that assists multinational corporations and start-ups with the legal and regulatory challenges of establishing and operating their businesses. We aim to offer NBFC advisory services to all individuals and enterprises with access to their legal and professional requirements with a single click. We have collaborated with numerous Indian Fintech companies to help them establish a lending operation and obtain sanction from the SEBI and RBI.
Overview of Nidhi Company Registration Consultants
A Nidhi company is recognized in the non-banking financial business, per Section 406 of the 2013 Companies Act. The lending and borrowing of funds between members is their primary business. Mutual benefit funds are also known as permanent mutual benefit companies and benefit funds. The Ministry of Corporate Affairs in India oversees these organizations and has the power to make rules on how deposits are accepted. The primary objective of these groups is to teach its members to be economical with their money. The Nidhi Company or Microfinance Advisory Services concept has some support in southern India. We also provide many other services like Internal Audit Services, Transfer Pricing Consultant, GST Litigation Consultant, Income Tax Litigation, and many more.
Establishing the Nidhi business in India does not require clearance from the RBI, making it easy to integrate. We at JJJ and Company LLP, offer the best NBFC Setup Consultants Delhi to establish your business.
Public companies are the legal status of Nidhi Companies.
After their name, you must write “Nidhi Limited.”
The Reserve Bank of India oversees Nidhi Companies, which have operations similar to non-bank financial companies (NBFCs).
Nidhi Company’s principal objective is to conduct all its lending and borrowing internally, without using outside parties.
According to the 2014 Nidhi Rules, Nidhi is authorized to rent locker space to its members. The total revenue from rentals must not exceed 20% at any point during the fiscal year.
The Governing Authority establishes the following conditions for the incorporation of Nidhi Company in India:
The minimum number of members required is 7, of which 3 should be the designated directors.
The minimal equity share capital is Rs. 5 lakhs.
The company’s objective is to encourage prudence and saving among its members, as evidenced by the mandatory incorporation of its object in the MOA.
Limited company status is required by the Company Act of 2013.
The following are the primary benefits of registering a Nidhi company in India:
Simplified Form
Setting up a Nidhi Company is a relatively simple process. The formation of Nidhi Company necessitates a simple and uncomplicated documentation process, as well as a minimum of seven members, three of whom will be appointed as directors.
Contempt for the Reserve Bank of India
A Nidhi Company is not required to adhere to any regulations of the Reserve Bank of India. Consequently, the Nidhi Company is permitted to establish its policies.
Reduced Risk
The Nidhi Company is less likely to experience financial difficulties because only members can engage in lending, borrowing, and deposit operations.
Cost-effective Registration
The Nidhi Company registration procedure is less complex than other NBFCs, so it does not substantially impact the Director’s finances. Furthermore, it helps the Nidhi Company secure commercial financing to facilitate corporate expansion.
Guaranteed Savings
The objective of a Nidhi Company is to promote savings among Indians.
Net-Owned Funding System
The Net-Owned Funding System is the methodology by which a Nidhi Company raises funds by investing a certain amount of money in the company. This attribute facilitates Nidhi Companies’ expansion and reduces the cost of ownership for proprietors.
To know more beneficiaries of Nidhi Company, you can reach out to JJJ and Company LLP, Nidhi Company Registration Consultants in Delhi, as we have a team of experts to make easy and quick NBFC registration services.
The following are some of the limitations imposed by the 2014 Nidhi Rules on Nidhi Companies. According to Rule 6 of the 2014 Nidhi Rules, a Nidhi Company shall NOT:
- Do business in the areas of chit funds, hire buy financing, lease financing, insurance, or the purchase of securities issued by any body corporate;
- Issue debt instruments such as debentures, preference shares, or any other type of debt instrument under any name or format;
- Establish any current account with its participants;
- acquire another company through the purchase of securities, exert any kind of influence over the make-up of the board of directors of another company, or make any arrangements for a change in management, unless a special resolution was passed at the general meeting and the Regional Director with jurisdiction over the relevant Nidhi gave their prior consent;
- Provided that Nidh is that have complied with all of the requirements of these regulations may offer locker facilities for rent to their members, subject to the rental income from such facilities not exceeding twenty percent of the Nidhi’s gross income at any point during a financial year.
- Accept money as a deposit or lend to anyone besides its members;
- Any of the assets that its members have deposited as security;
- Accept deposits from or make loans to any corporate entity;
- Engage in any partnership agreements when it comes to borrowing or lending;
- Issue, or cause to be issued, any advertisement in any form for soliciting deposits; provided, however, that private distribution of fixed deposit scheme details among Nidhi members bearing the phrase “for private circulation to members only” shall not be regarded as such.
- Pay any brokerage or reward for collecting member deposits, deploying funds, or approving loans.
1. What is a Nidhi Company?
Non-banking financial companies (NBFC) known as Nidhi Companies, let their members deposit and borrow money from one another, therefore encouraging mutual advantages and savings.
2. Why do I need Nidhi Company registration consultants?
Nidhi Company registration consultants help with paperwork, legal approvals, and compliance, making the registration process smooth and hassle-free.
3. What do NBFC advisory services include?
To guarantee seamless NBFC operations, NBFC consulting services support starting up, compliance, RBI laws, financial structure, and risk management.
4. How can NBFC registration services help my business?
Handling documents, RBI clearances, and regulatory requirements, NBFC registration services help you to have your Non-Banking Financial Company (NBFC) registered without delays. To know more, contact us!
5. Why should I hire NBFC setup consultants in Delhi?
Delhi’s local rules and RBI standards are known to local NBFC setup experts, which facilitates your starting and running of an NBFC with complete compliance.
6. What are microfinance advisory services?
Microfinance advice services guarantee that they efficiently offer financial assistance, thereby helping small companies with operations, loan structure, and compliance.
