Nidhi Company Registration
Nidhi Company is the blessing in disguise for those people who are interested in beginning the loan/finance business in India as it ensures ease and affordability factor as well. Nidhi Company Registration is a procedure through which the incorporation of type of NBFC called Nidhi can be made possible. Another name of this NBFC is the Mutual Benefit Finance Company. Furthermore, this incorporation takes place under the provisions of Companies Act, 2013.
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Documents Required for Nidhi Company Registration
Latest Passport size Color photograph of all the promoters (Shareholders and Directors)
Any of the following ID: Passport, Voter ID/Driving License of Shareholders and Directors.
Registered office Proof
Latest & Clear Telephone Bill/Electricity Bill/ /Water/Gas Bill of the registered office address
PAN Card of all shareholders and Directors. Foreign nationals must provide a valid passport.
Latest Bank Statement/Telephone Bill/Electricity or Gas Bill/Water Bill of Shareholders and Directors
NOC from owner
No Objection Certificate from owner(s) of the premises of registered office.
Minimum Requirements to Start a Nidhi Company
Activities like Chit Fund, Hire-Purchase Finance, Leasing Finance, Insurance or Securities Business is strictly prohibited.
Number of Members
It starts with 7 members as a public limited company, however, to obtain a Nidhi Company Status it needs at least 200 members in a year.
The minimum paid-up equity capital required for Nidhi Company Status is Rs. 10,00,000 help by at least 200 members.
Name of the company should be unique, and it must not be the same or similar to the name of any existing company or a trademark.
Compliances for Nidhi Company
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Annual Returns with ROC:
The Nidhi Company has to file its Annual Returns with MCA through Form MGT-7.
Profit & Loss Statement
The financial statements and other related documents are to be submitted, annually, in Form AOC-4.
Income Tax Returns:
Nidhi Company, like all other businesses, must file its Annual Income Tax Returns by 30th September of the following financial year.
Process & Timeline for Nidhi Company Registration
Frequently Asked Questions
Nidhi Company is a category of Non-Banking Financial Company (NBFC) that does not require any license from the Reserve Bank of India (RBI). It is formed for the sole purpose of accepting deposits and lending loans to its members only. It works through its members only.
The Nidhi company must be registered as a Public Limited Company, under the Companies Act, 2013. This essentially means that there are at least 3 Directors and 7 Shareholders. Further, its MoA (Memorandum of Association) must state that the main objective of the proposed company is to promote thriftiness and a habit of savings among its members.
1. Apply for DIN & DSC,
2. Search a unique name in 3 options and get approved by ROC for 1,
3. Submit of MoA & AoA,
4. Certificate of Incorporation & CIN,
5. Take PAN, TAN & Bank Account.
• Director’s PAN Card copy (ID proof),
• Passport size photograph of Directors,
• Copy of address proof of Director,
• Copy of address proof of company. Property proof (If owned property), Rent agreement (in case of rented property), electricity/water bill, etc. are valid,
• Landlord NOC (in case of rented property).
A Nidhi company is not to accept deposits of more than 20 times of its Net Owned Funds (NOF) as per its last audited financial statements.
The maximum balance in a savings account of one member of a Nidhi company should not be more than Rs. 1 lakh. The maximum rate of interest that can be paid on any deposits should not be more than 2% above the rate of interest payable by nationalized banks, on such deposits.
A Nidhi can be incorporated with a minimum of 3 directors and a maximum of 15 Directors.
You need to ensure that the name is not similar to any other company already registered. Whether it is a Private Limited, OPC, LLP or Public limited company. Also, make sure that the name is not a registered trademark taken by someone under the IP Act of India. Also, make sure that the name is not too generic. Otherwise, the ROC may reject it. Moreover, try not to use abbreviations, adjectives.
Nidhi Companies are regulated by Nidhi Rules, 2014. These rules were introduced by the Central Government and contain the regulatory policies for Nidhi company operations.
- An individual person, not a corporate body or trust, can become a member.
- Is over 18 years of age.
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