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

    Photograph

    Photograph

    Latest Passport size Color photograph of all the promoters (Shareholders and Directors)

    Identity Proof

    Identity Proof

    Any of the following ID: Passport, Voter ID/Driving License of Shareholders and Directors.

    Registered office Proof

    Registered office Proof

    Latest & Clear Telephone Bill/Electricity Bill/ /Water/Gas Bill of the registered office address

    Pan Card

    Pan Card

    PAN Card of all shareholders and Directors. Foreign nationals must provide a valid passport.

    Address Proof

    Address Proof

    Latest Bank Statement/Telephone Bill/Electricity or Gas Bill/Water Bill of Shareholders and Directors

    NOC from owner

    NOC from owner

    No Objection Certificate from owner(s) of the premises of registered office.

    Minimum Requirements to Start a Nidhi Company

    Prohibited Activities

    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.

    Capital Requirement

    The minimum paid-up equity capital required for Nidhi Company Status is Rs. 10,00,000 help by at least 200 members.

    Unique Name

    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

    NDH-1 Form:

    Start with placing an order with us. We have ready-made plans for you. For any help contact us

    Annual Returns with ROC:

    The Nidhi Company has to file its Annual Returns with MCA through Form MGT-7.

    NDH-2 Form:

    It can request MCA for an extension in this Form, in case it has not been able to add 200 members in its first financial year.

    Profit & Loss Statement

    The financial statements and other related documents are to be submitted, annually, in Form AOC-4.

    NDH-3 Form

    Other than the above NDH-1 Form, a half-yearly return is also required to be filed in NDH-3 Form.

    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

    As the application for Company Incorporation is filed online, the process starts with the issuance of Digital Signatures of class two.

    The name of Nidhi Company must end with “Nidhi Limited” and must be unique and should not be the same or similar to an existing company.

    One single application (spice 32) is filed for incorporation of the company. with the approval of this, the Certificate is Issued.

    The application for Nidhi Status is filed when the net worth of the company is over Rupees Ten lacs and the minimum no. of members are 200.

    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.

    1. An individual person, not a corporate body or trust, can become a member.
    2. Is over 18 years of age.

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