Monday, May 25, 2020

Nidhi Company Registration Process and Documents

Nidhi Company registration process is not very difficult and not take much the whole process. To proceed with the concept of nidhi company, we like to give a brief introduction to Nidhi Company.

Nidhi Company is a company work as a small bank, this is the reason some people use to know this company as a Nidhi Bank company. In this company directors manage the whole process of collecting the fund from the market and distribution the fund in the market. We need to understand that the Nidhi Company only works for their own members not for any other person. If any person wants to take loan from the Nidhi bank then they need to become a member of the company.

Nidhi company follow all rules of Nidhi rules 2014 prescribed by the Ministry of corporate affairs. The process of registration and all applications can be read in The nidhi rules 2014.

Nidhi Company Registration Process

For Registration of Nidhi company, we need to consider many facts. So we are describing the steps involved in the process of Nidhi Company registration.

Step 1: Collection of Seven members

Nidhi Company is the public limited company and every public limited company needs to have at least 7 members which are also known as the shareholders or promoters of the proposed company. So we need to arrange 7 members for the nidhi company for the registration. At the time of finding new members we need to consider Rule 8 of Nidhi rules.

Rule 8. Membership.—(1) A Nidhi shall not admit a Company or trust as a member, which means only an Individual and a partnership firm can become members.

(2) No Nidhi company can reduce there members blow 200 at any time of there operation, in any circumstances its happens then the company must take prior approval of the RD.

(3) Age of member must not blow then 18 years old:
In case of  deposits, minor may be accepted as a member, if they are made by the natural or legal guardian who is a member of Nidhi.

Step 2: Determine Director

In Nidhi company, there must be at least 3 directors at the time of registration, so we need to choose any of 3 from the 7 members to be a director at the time of nidhi company registration process. At the time of finding new member, we need to consider the Rule 17 of Nidhi rules.

Rule 17. Rules relating to Directors.—(1) The Director must be a member of Nidhi company in which he wants to be director.

(2) The director of Nidhi Company cannot hold the office of director for more than 10 years continuously.

(3) The director can be reappointed in any Nidhi company after the expiration of 2 years from the date of resignation or removal.

(4) Central the government may increase the tenure of any director in the nidhi company
terminate on expiry of such extended tenure.

(5) Coming Director must comply with the requirements of subsection (4) of Section 152 of the Act and shall not have been disqualified under section 164 of the companies act 2013.

Step 3: Documents required for nidhi company registration

Every member of the company need to provide the following documents at the time of the Nidhi Company registration process.

      1)      PAN card (Permanent Account Number)
      2)      Adhaar Card
      3)      Bank statement / Passbook ( Must not be old more than 60 days )
      4)      Photo
      5)      Email ID
      6)      Phone number

After collection of all these documents of the members we need to apply for the Digital Signature.

Step 4: Digital Signature (DSC)

A digital signature is a signature under a pan drive token, this signature is required for every step of company registration and management after company registration. The Digital signature of members who are not a director of the company is not required after Nidhi company registration. This signature looks like a normal pen drive and the life of this signature is not more than 2 years. Every person needs to create a digital signature after 2 years.

Step 5: Name Approval of Nidhi Company

Name approval is very important in the Nidhi company registration process. If you like you can file your company directly to the department without any name approval, but we suggest taking name approval first so that chances of getting company is very high. Name must contain Nidhi as a middle name and Limited as the last name of the company. We cannot use any other last name or middle name in the nidhi company.

We should understand that the first name of the nidhi company must not resemble or same to any other nidhi company or any other company having the financial objects in the MOA.

Step 6: Preparation of document and submit to the department

After all the above process of Nidhi company registration we need to create some specific document which need to submit with Spice + from issued by the department, these documents are as follow

     1)      DIR 2 to be created in which every director will give permission to becoming director and other details like any other company in which he is already a director.

     2)      Declaration is required to be given by all the members of the Nidhi company, these declarations must be created as per the rule 6 of the Nidhi rules 2014. There are some restriction on the working of the nidhi company and all those restriction to be signed by all promoters of nidhi company.

     3)      INC 9 to be filed by all members of the new company, in this form very promoters need to give a clarification that he had not committed any mistake in any other law of the companies act.

So above we have discussed the Nidhi Company registration process which also known as Nidhi bank registration. The registration is very simple and easy but we should understand that the registration process required the Chartered accountant or a Company secretary for preparing the documents, We are the CA firm providing services of Nidhi Company registration. Our Online CA service is best in this Nidhi Company registration.

Monday, July 30, 2018

Mandatory KYC of Directors To Be Done Before 31st August 2018?

We all know that the ministry of corporate affairs regulates companies in India is taking many steps to stop the close the bogus and inactive companies. With the same aim of removing not active or disqualified directors the department wants directors to fill one form for KYC.

ROC already issued notices to companies which are not active, but main problem with these companies are they don’t have any accurate communication details of directors, now MCA has issued one form which need to submit by all director with some documents and one unique phone number and mail id. More information on roc filing on
Mandatory KYC of Directors
ROC issued notices to Companies concerned but not informed directors associated with them because ROC doesn’t have any database of individual directors. So, as a part of creating database of directors consisting mobile number, email Id and residential address of Directors, MCA issued a new form which is required to be filled every year by every DIN holder.


Form DIR 3 KYC is to be filled by every director to the ROC even regardless he is appointed as a director or not, whether he is qualified or disqualified. DIR-3 KYC is introduced vide MCA notification dated 05th July 2018 by which Companies (Appointment and Qualification of Directors) Rules, 2014 been amended by release of Companies (Appointment and Qualification of Directors) fourth Amendment Rules, 2018.


E-Form DIR-3 KYC is required to be filed pursuant to Rule 12A and Rule 11(2) and (3) of the Companies (Appointment and Qualification of Directors) Rules, 2014.

Rule 12A

Every individual who has been allotted a Director Identification Number (DIN) as on 31st march of a financial year as per these rules shall, submit e-form DIR-3-KYC to the Central Government (ROC) on or before 30th April of immediate next financial year.
Provided that every individual who has already been allotted a Director Identification Number (DIN) as at 31st March, 2018, shall submit e-form DIR-3 KYC on or before 31st August, 2018.


Rule 11(2)

The Central Government or any officer authorized by the Central Government shall, deactivate the Director Identification Number (DIN) of an individual who does not intimate his particulars in e-form DIR-3-KYC within stipulated time in accordance with rule 12A.
DIR- 3 KYC after Due date – permissible? Yes If you want to spent Rs. 5,000/-.

Rule 11(3)

The de-activated DIN shall be re-activated only after e-form DIR-3-KYC is filed along with Rs. 5,000/- additional fees.


1. Enter Name of Director as per PAN database
2. Enter Father’ Name (Married woman must also mention her father’s name)
3. Enter Nationality, Date of Birth, Income Tax PAN
4. Select whether do you have a Passport? If Yes, enter passport number and attach copy of passport
5. Enter Aadhar Number and attach copy of aadhar card
6. Enter Personal Mobile No and Email Id
7. Enter Permanent residential address and present residential address
8. Compulsory Attachments:
Proof of Permanent residential address – Aadhar Can be used
Copy of Aadhar Card
Copy of Passport – If Having
Proof of Present residential address – If different from permanent address

The above attachments must be self-certified by concerned DIN holder and also attested by professionals’ along with his signature and membership number.
After affixing DSC of Concerned Director and Practicing Professional (CS/CA/CWA), Pre-scrutinize the form, and then click on ‘Send OTP’ button. Please note that OTP can be successfully sent to the mobile number and email ID against one form, for a maximum of 10 times in one day and twice in a span of 30 minutes. Once, OTP received on both mobile number and email id, enter the both OTPs and click on verify OTP button. After verification, file the form and save the acknowledgement.

For more details, go here:

income tax return filingprofessional tax registration onlinegst registration onlinepartnership firm registrationca for company registrationprivate limited registrationonline ca services indiaonline company registration

Thursday, June 28, 2018

Five Reasons You Should Done Your Income Tax Return Filing Before 31 July 2018

The income tax department makes it compulsory for every person to done income tax filing if his gross total income before allowing the deduction of 80C to 80U, exceeds Rs 2,50,000/- in the financial year. However this limit is 3 lakh for senior citizen and 5 lakh for super senior citizens.

Senior citizen means any person more than the age of 60 year at the time of filing return or super senior is the persons whose age is more than 80 years at tha time of filing return.

Normally above limit is to be considered but the assesse can file on voluntary basis even if the income of that assesse is below the above limit.
Now here we will discuss about the 5 reasons of doing income tax filing before 31st July 2018.
1) Carry Forward The Loss Of Business
The loss done by any individual or business firm in business are known as business loss and it can be forward and settle with the profit up to the next 8 years (Some conditions are there). This loss can be settle in next year only in the case the where income tax return filing done before the due that. In this financial year due that for filing is 31st July 2018.
2) No Income Tax Refund After Due Date
EFiling income tax is not mandatory for the assesse who wants to take back taxes paid as TDS, in case any TDS paid in extra by any assesse then they need to complete filing before due date. Otherwise income tax refund will not provide by the department.
3) Avoidance Of Heavy Penalty
As per amendment under section 234F of the Income-Tax Act, if a person required to furnish a return of income by July 31 fails to do so, then a fee of Rs 5000 shall be levied if the return is furnished before 31st December. However, the fee shall be Rs 10,000 if it is filed after 31st December. Moreover, if the total income of the person doesn’t exceed Rs 5 lakh, then fee payable shall not exceed Rs 1000.
 4) Legal Sanction To Your Income
Filing income tax return provides you a proof of income. It is suggestion to all assesse to file return even it they are not legally bound for this. However the date for that person should 30th September. Filling a return gives a legal sanction to your income even if you are not liable to pay taxes for the year.
5) Advantages In The Processing Of A Loan
Banks and other financial institution always demand for income tax return before sanction the loan to any assesse. Its depend on the norms of the bank to take return for continuous 2 or 3 years. So it’s better to file return for maintaining the trend if you want to take loan in coming years.

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Tuesday, June 12, 2018

Complete Guide To Online Income Tax Return Filing For Fy 2017-18

This year deadline for income tax return filing for FY 2017-18 or AY 2018-19. The last day for filing ITR is July 31, 2018, and you should not miss the chance at any cost. Filing returns on time is proof of financial prudence.

If you are filing ITR for AY 2018-19 for the first time then its better to go with the quick guidelines, here is a quick guide on what you need to know as a salaried employee.

The Amendments

Many employees believe that they are the most burdened lot, which is clearly a mental trap. The amendments have been introduced to make the online income tax return filing more transparent for assesse.

Some of the notable changes introduced under the Finance Act, 2018, include reintroduction of standard deduction, elimination of allowances (medical and HRA), long-term capital gains (LTCG) tax on equity, and increased income tax cess.

The simplified e-version of the efiling income tax form is not only faster to file but also helps the tax department to keep a strict vigil on those who under report or over report their incomes and expenditures to evade the tax net.

Here's A Handy List Of Documents Required For Efling Income Tax:

1) Permanent Account Number or PAN card
2) Adhaar card
3) All bank statements with bank account details
4) Form 16 issued by your employer or any other TDS information
5) Copy of your last year's ITR
6) Proof of investments for deductions under Section 80 C:

Section 80 C allows the taxpayer to save up to Rs 1.5 lakh in the financial year. It is certainly one of the major parts of tax planning and saving income tax.
You can claim following investments under section 80 C:

1) Premium paid for Life insurance
2) ELSS or Mutual Fund investments
3) Contributions towards Provident Fund
4) Premiums paid for retirement
5) Tuition fees for children
6) Principal for home loan
7) National Savings Certificate bonds
8) Bank FD or similar deposits
9) Amount paid to National Pension System or other similar account

Other Investments

1) Excess house rent paid over the HRA. (Only when the assesse doesn't own a house)
2) Deduction for higher education loans
3) Medical insurance premiums for self, family, or parents
4) Saving account Interest up to Rs 10,000
5) Interest paid on home loan
6) Donation to Prime Minister's Relief Fund
7) Income from patents and royalties

This is an indicative list of documents that will help you claim deductions and save tax. You would need to get the original copies scanned to file the IT return online.

Saturday, June 2, 2018

What Time Duration Involve For Different Type of Business Registration Online?

For doing business in India we need to use some identity, and for this purpose Firm registration online is the option to do. Aspirants of business have many option, they can chose different type of business entity.

Every business registration involves some time to get done. Now we will explain time duration with reasons for every type of business registration online.

Company Registration: Company may be public or private limited company people use to take registration. Both companies have almost same method of registration. Only part which make private limited different from the public limited company is rules and regulation to be follow after new company registration.

It take almost 10 working days for whole process to be done, which involves name approval, DSC creation, MOA and AOA, Documentation and other procedures. For New Company registration the all documents to be submitted by the professional to the MCA in Manesar (Near Delhi). The process is 100% and directors need not to present at the time of registration.

LLP Registration: Limited liability partnership is advance form of normal partnership. This is combination of partnership and company registration. LLP is normal partnership with limited liability provision. Normally LLP take 20-25 working days for registration. After LLP registration we need to apply for pan card, which also takes almost 15 days.

Partnership Registration: Partnership firm registration is done by creating simple deed between partners, which normally takes 1 day. With the help of partnership deed we will apply pan card, but will help of deed and Pan card we cannot open bank account and banks demands some government registration for this purpose.

GST registration is best option for opening bank account, so its better to open take registration so that we can open bank account for the company. Partnership firm registration online is possible with simple steps.

Note: In case we are not cover in the GST, then its better to take company registration or LLP registration, because in these registration there is no requirement of GST for opening bank account with the name of business entity.

Sole Proprietorship Firm: If any person wants to register business with his own name then sole proprietorship is best option. This registration requires GST registration. Normal GST registration takes 5 working days. It take almost 1 hour to fill all details for registration. After that department will issue certificate for GST.

Now, we understand that in case we want to register our business in fatest form then its better to go for company registration. If we are individual for doing business the Sole proprietorship is best. All above firm registration online is possible to done with simple steps.

Wednesday, May 16, 2018

Online CA for Private Limited Company Registration in India

Online Company Registration in India is not difficult now. Ovakil provides services for business registration which include different type of company registration, sole proprietorship, partnership etc. Total process of registration is generally takes 10-12 working days will all document completion and process. 

As per the Company Act 2013, We need CS or CA for Company registration. These professionals complete all documents and signature the documents were required.

Image result for private limited registration
Process of Online Company Registration in India

Step 1 Name Approval: We need to apply for name approval in the RUN form provided on the website of MCA for Private limited Company Registration.

Step 2 Digital Signature: All directors of new company must have valid digital signature (DSC) for singing the PDF documents which to be upload on the government portal.

Step 3 Preparations of Documents: For Company registration in India we need consider that all documents should be forwarded by client to our CA for Company registration. All documents should be properly scanned and clear image from phone can be taken for forwarding Documents,

CA will collect and create MOA and AOA for Online Company Registration in India. These documents along with the normatl KYC and address proof will be uploaded on the government for approval.

We need to understand that at the time of submitting documents to the department the Chartered accountant who are getting your company ready will fill the form of PAN card. So on the certificate of the company there are PAN number will be written on original copy.

Step 4 Company Auditor: After submitting all documents and receiving approval from the department all new company needs to appoint the auditor for company within 30 days from the date of approval.
This auditor will appoint up to the conclusion of first AGM which will take place after 31st march 2018.

At the time of company formation director don’t need to be present in person in front of chartered account or department. CA only need properly scanned documents for working.

Company can be registered at home address?

General question usually come in mind while at the time of company formation is whether it’s possible to open new company at home address or specific commercial area is required. 

There is no specific area is required for company formation. Resident address of director can work for company registration. We just only need No objection certificate for registration of Private limited Company.

Tuesday, May 8, 2018

Difference Between Composition And Regular GST Registration

(1) What Is Gst Registration?

GST registration is new form of taxes comes in India in the place of various taxes like vat, service tax, custom, entertainment tax etc. It is a one nation tax which has a dream of Indian government for so many years. Now you only need to pay GST in place of other indirect taxes, which has been mentioned above.

(2) Types Of Gst Registration?

There are two types of GST registration one in regular which further divides in to mandatory or optional and the other one is composition registration.

(3) What Is Regular Mandatory And Optional Registration?

Every person whose turnover exceeds 20 lacs or want to sale interstate sale (from one state to another) irrespective of turnover shall, mandatory register themselves in GST registration. 

When a person whose turnover does not exceed 20 lacs but voluntary they want to register themselves it’s called optional registration.

(4) What Is Composition Registration?

Where a businessman who does not want to maintained books of account , or taking input tax credit, or setting off output tax liability, they register themselves in a composition dealer and give flat @1% tax on sale, neither they maintained books nor maintained any details.

(5) Is There Any Monetary Limit For Composition Dealer Registration?

Under GST registration a person can opt for composition registration whose turnover does not exceed 75 lacs can opt for composition scheme.

(6) Is Person Can Change From Composition To Non-composition Or Vice Versa?

Yes, you can change from composition to non-composition or vice versa, but that can be done after on year only, because once you choose for composition or out from composition, that will remain for one year, and you can change after that financial year.

(7) Who Cannot Opt For Composition Scheme?

There are two types of tax payers who cannot opt for composition scheme
(i) Who’s turnover is more than 75 lacs
(ii) Who want to sale interstate sale.
(iii) Service sector industry cannot opt for composition scheme

(8) What Are The Benefits Of Composition Scheme?

There are few benefits available in composition scheme in GST registration , these are
(i) Cannot required to maintained detail records
(ii) Submit tax and tax returns quarterly
(iii) Flat rate of tax @1% on sale
(iv) No need to claim input tax credit
(v) Businessperson does not require following too much guidelines.

(9) What Are The Drawbacks Of Composition Scheme?

There are few drawbacks also available on composition scheme, these are:
(i) No Input tax credit available, hence taxes paid on input would ultimately increase the cost of the product
(ii) No big house is interested to purchase goods from a person who opts for composition scheme, because they cannot claim input tax credit, which they paid on purchase.
(iii) Cannot sale interstate sale.

(10) Is Any Survey Or Inspection Will Be Required For Gst Registration?

Yes, department will conduct a survey , on the premises where you register yourself in GST registration, and give you survey report, but no time has been prescribed in GST act for conducting survey.

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