Registration For Nidhi Company
Nidhi Company is private unit not meant for public use that is formed with investors to secure their funds. These businesses operate to provide limited number of Members-ONLY banking services, such as, deposits, loans, etc. When you’re opening this unit, it should be registered following the norms of NBFC (Non-Banking Financing Company) as regulated under Section 406 of Companies Act, 2013. We’ll make it easy for you as you avail our most guaranteed Nidhi Company Registration Package. We provide fast and affordable registration service that will satisfy you. Go through its details and know how it works THE BEST.
Nidhi Company Registration in India – An Overview
Sometimes, you succeed in building a group of investors who agree to invest their capital for the purpose of forming a Members-Only fund to deposit money and take loans, then you start a Nidhi Company. Nidhi Company functions as NBFC (Non-Banking Financing Company) regulated as per Section 406 of Companies Act, 2013, with the following features:
It is formed to get mutual benefits and it helps to maintain the habit of savings only for its own members (shareholders).
Its basic rules are:
Should be composed of at least 7 members of which 3 should be directors (similar to Limited Company). Within 12 months of registration, minimum number of members should be 200. Minimum paid up equity share should be INR 5 lakh at the time of registration and within 1 year, should be raised to at least INR 10 lakhs.
Note: In case, the company lacks in its fund as mentioned above within 1 year, it can request for extension of time to the Regional Director through Form NDH-2 before the end of FY, which will be applicable till next FY ONLY and after that the company cannot make any deposit, in case the fund is still lower than the desired amount.
- Ratio of NOF to Deposit should be more than 1:20.
- Ratio of NOF to Deposit should be more than 1:20.
- It accepts FD, RD and savings. (The rate should not exceed the rate of RBI for NBFCs. Nidhi Company follows the maximum rate of NBFC).
- It can give loans in against of security only, such as, Gold, Property, Fixed Deposit, etc.
- Only members can use its fund to borrow and lend money.
- Guidelines of RBI are exempted for Nidhi Company based on its own structural principles.
- As per Rule-6 of Nidhi Rules of 2014, Nidhi Company cannot function in these modes:
- Leasing Finance, Hire Purchase Finance, Chit Fund, Insurance or Acquisition of Securities
- Accepting loans and give loans to any external individual/corporation
- Issue preference shares, debentures or some other debt instruments in any form
- Operating any current accounts
- It is not entitled to perform vehicle finance business/microfinance business in India.
Benefits of Nidhi Company
- It is a separate legal entity with limited liabilities. It is solely operated under Nidhi Company Rules.
- It has better credibility than similar functional units, such as, Trusts, Cooperative Societies, etc.
- Works under easy regulations as followed under Nidhi Rules 2014. Easy processing process is followed in its operation.
- Ease to get loans available in cheaper rate than other banks and NBFCs. Such companies operate for those members who have minimum eligibility of availing loans, such as, low wage workers, pensioners, etc.
- Easy mode of money deposit and encourages the habit of savings amongst the enrolled members ONLY. So, it is somehow secured for investment.
- No requirement of external involvement and thus there is less possibility of dispute or corruption.
- Nidhi company provides financial help to the lower and middle-income groups without complex formalities and documentation and it fulfils the needs of lower and middle-income groups, such as, in rural and remote areas, etc.
Documentation for Nidhi Company
- PAN Details of directors
- Passport size photograph of directors
- Copy of Voter ID Card/Aadhaar Card/Ration Card of the directors. Passport (In case of NRIs/Foreigner member)
- Address proof of directors
- Address proof of the business space. For rented business space, rental agreement of the same
Note: The address Proof should not be older than 2 months.
- Landlord’s NOC, where the business space is located
- If you own the business space, property papers of the same
- Electricity/Water Bills of business place
Our Package is Offering You:
- DIN for all Directors
- Memorandum of Association/Article of Association (MOA/AOA)
- Digital Signature for all Directors
- Name search & Approval
- Issue of incorporation certificate (CIN)
- Registration fees
- Company PAN
- Company TAN
Procedure to Register a Nidhi Company
STEP-1) Ensure the minimum requirement of the company, such as, number of directors, equity shares, etc. and provide director’s basic details, such as, Full Name, Address, Phone number, etc.
STEP-2) Apply for DSC (Digital Signature) & DIN (Director’s Identification Number).
We’ll work for you to get these documents registered.
STEP-3) Name Approval Application and its verification
Name of your Nidhi Company will be approved through MCA.
We’ll associate with you to finalise this document and get it registered successfully.
STEP-4) Submission Of MOA (Memorandum Of Association) & AOA (Article Of Association)
We’ll be working based on the documents you provide to complete this submission. Ensure that objective of your Company should be clearly mentioned as ‘Encouraging the habit of thrift and savings amongst the members only, for their mutual benefits’.
STEP-5) Certificate Of Incorporation
Registrar of Companies will issue your Certificate of Incorporation after all the above documents are successfully registered from our side and the processing fee for Nidhi Company Registration is deposited as provided from your side.
Your Nidhi Company Registration is complete now.....You can apply for PAN and TAN in the name of your Nidhi Company.
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