Deepak Gupta | Jan 31, 2018 |
How to start a gold loan company in just 20 days
Do you Know, India is the largest importer of gold and a household in India possesses the largest gold reserve in the world Due to this fact only, companies like muthoot finance are growing like beyond optimism and this is the reason why many entrepreneurs, startups were interested in opening up a gold loan company.
However, it is not easy to start a finance company in India due to stricter norms being devised by the mighty Reserve Bank of India (RBI). However, there are still legal ways to do start a gold loan company without RBI approval and that too with just Rs.5 lakh capital.
Nidhi Company: A Gold loan company
All banking and non banking companies engaged in finance business are regulated by the Reserve bank except few companies like Nidhi Company etc. Nidhi Company is an NBFC which can accept deposits and lend money to its members.
Nidhi Company requires only 5 lakh initial capital and seven members to start. It is one of the easiest ways to start a gold loan business.
The main advantage of Nidhi Company is that it can accept deposits from its members and can use that money to lend it further. Nidhi Company is also known as Gold Loan Company, because the most earning of Nidhi Company is from gold loans.
Cost and time for Nidhi company registration
The Nidhi Company registration will cost you around 50 to 55 thousand with 5 lakh capital and takes around 20 days to register.
Nidhi Company at a glance
Here are some basic points about the Nidhi Company which will help you to understand it better:
Registration of Gold Loan Company in 5 Steps
Now, since you have understood the meaning of Nidhi Company, let us move forward to know the complete procedure for Nidhi Company registration. For simple understanding, we have explained the Nidhi registration procedure in five steps:
Nidhi Company registration procedure is completely online and hence, all the required documents are uploaded to the scan form. Further, it is recommended to submit all required documents to avoid rejection. Here is the list of documents required for Nidhi Company registration:
Further, the following additional documents are also required for registered office:
The above documents should be collected for each of the initial promoters and should be kept in the scan form.
Once the documentation is completed, the next step is to apply for the name approval of the company. Name approval is the important thing because it is the name that describes your company and ultimately becomes your brand and hence, follows the below guidelines for finalizing your company name:
Brand (Prefix) +Nidhi (Suffix) +Limited
Once your chosen name is approved, the ROC will issue a name approval letter.
After getting the name approval letter, the next step is to file for Nidhi Company registration with the MCA. This is the last step in the incorporation process but takes a lot of time, as many new documents are drafted, signed and submitted to the Registrar of Companies (ROC).
If all the documents are found to be ok, then the ROC will issue the Certificate of Registration for Nidhi Company along with PAN and TAN of the Company.
After you got the Nidhi Company registration, now you are all set to start your gold loan business. However, before starting up, you need to setup some things right, so that you can scale on the Nidhi Company operations and gold loans:
Once youre ready with basic stationery, set up Nidhi Company software to manage all the accounting and calculations of your clients into a single software. There are many companies offering Nidhi software to manage gold loan and hence, you must check all the features and buy the same.
Once, the software is also installed properly, you are ready to rule the world.
About the Author
CA Paras Mehra is a founder of hubco.in, a website for registering a company, trademarks, GST and managing business compliances for startups and MSMEs.
Click Here to Buy CA Final Pendrive Classes at Discounted Rate
You May Also Like:
How to create sub-users in E-Way Bill
Tags: How to start a gold loan company in just 20 days,How to start a gold loan company, Gold loan company, Gold Loan
In case of any Doubt regarding Membership you can mail us at [email protected]
Join Studycafe's WhatsApp Group or Telegram Channel for Latest Updates on Government Job, Sarkari Naukri, Private Jobs, Income Tax, GST, Companies Act, Judgements and CA, CS, ICWA, and MUCH MORE!"