Why Register a Nidhi Company in Coimbatore?

• Encourages Thrift and Savings: Promotes a culture of saving among the members.
• Mutual Benefits: Provides mutual benefits through loans and advances to members at reasonable rates.
• Regulatory Simplicity: Subject to minimal regulation compared to other financial institutions.
• Legal Framework: Operates under the legal framework provided by the Ministry of Corporate Affairs (MCA).

Requirements for Nidhi Company Registration in Coimbatore

Basic Requirements

• Minimum Members: At least 7 members are required, out of which 3 should be directors.
• Capital Requirements: Minimum paid-up equity share capital should be Rs. 10 lakhs.
• Shareholder Compliance: Must have at least 200 members within one year of commencement.
• Deposit Requirements: Must ensure the Net Owned Funds (NOF) to Deposits ratio is not more than 1:20.
• Ownership: Must have 'Nidhi Limited' as part of its name.

Documentation Required for Nidhi Company Registration in Coimbatore

• Memorandum of Association (MoA) & Articles of Association (AoA): Defining the company's objectives and internal rules.
• Identity Proof & Address Proof: ID and address proofs of all directors and members, such as Aadhaar card, PAN card, and utility bills.
• DIN and DSC: Director Identification Number (DIN) and Digital Signature Certificate (DSC) for all directors.
• Proof of Registered Office: Rental agreement, NOC from the landlord, and utility bills for the registered office address.

Compliance Requirements of a Nidhi Company in Coimbatore

Pre-Incorporation Compliances

• Minimum Members: At least 7 members, out of which 3 must be directors.
• Company Name: Must have the suffix “Nidhi Limited” in its name.
• Prohibited Members: Minor, Body Corporate, and Trust cannot be members.
• Minimum Paid-Up Capital: Rs. 10 lakhs.
• Branch Restrictions: Cannot open branches without earning profit for three consecutive financial years.
• Interest Rate Cap: Loan interest rate shall not exceed 7.5% above the highest deposit interest rate.
• Preference Shares: Cannot issue preference shares; existing preference shares must be redeemed.

Post-Incorporation Compliances

General Compliance

• Member Increase: Number of members should increase to at least 200 within one year of incorporation.
• Net Owned Funds: Should be Rs. 20 lakhs.
• NOF to Deposits Ratio: Not exceeding 1:20.
• Unencumbered Term Deposits: Not less than 10% of outstanding deposits.
• Statutory Meetings: Must convene statutory meetings and maintain books of accounts.

Annual Compliance

Event-Based Compliances for Nidhi Company in Coimbatore

Event-based compliances are required during the company registration process or when there are changes in the company's structure. These include:

• Change in the company’s name.
• Change in registered office address.
• Appointment or resignation of directors.
• Appointment or resignation of auditors.
• Amendments in the company’s objectives.
• Transfer of shares.
• Increase in authorized capital.
• Appointment of key managerial personnel.