Overview

Nidhi companies are a specific type of non-banking financial company (NBFC) in India. They cater to promoting savings habits among their members by accepting deposits and providing loans.  This has been one of the most preferred form of companies.

Nidhi Company is only allowed to accept deposit and lend money to its members, it can not collect money from general public. Nidhi company registration in India has been so quick and effortless by partnering with the growing business consultants of CRSPL, our experts will guide at every step.

Nidhi companies have some limitation and regulations, some of them are as follows: -

•  They can only borrow and lend money to their members. Nidhi companies cannot deal with the general public.
•  There are restrictions on the types of shares they can issue (preference shares are not allowed).
 

Why

Nidhi company is also recognized as “Mutual Benefit Society”, it is kind of company in the Indian non-banking sector, which is recognized under the section 406 of the company act, 2013.  These companies are regulated under Nidhi rules, 2014 regulated by Ministry of Corporate Affairs. There are certain reasons why you should prefer to choose this form of company, some of its benefits are mentions below: -

•  Nidhi companies don't require a license from the Reserve Bank of India (RBI) to operate.
•  They have simpler regulations compared to other NBFCs.

Here's a breakdown of the Nidhi company registration process and requirements:

Minimum Requirements:

•  Members: A minimum of 7 members are required to register a Nidhi company out of which three members must be the directors of the company. (The number of members should increase to at least 200 within one year of its incorporation).
•  Directors: A minimum of 3 Directors are required to start a Nidhi Company
•  Capital:

1. A minimum authorized share capital of ₹10 lakh is required.
2. The company needs to have a minimum paid-up share capital of ₹10 lakh.
3. Within a year of registration, Net Owned Funds of should be ₹20 lakh rupees or more.
    

Process

1.  DIN: Obtain DIN (Director Identification Number) for all directors 

2.  DSC: Apply the DSC (Digital Signature Certificate) of all the Directors and members (if members are upto 20 ).

3.  MoA & AoA: Draft the Memorandum of Association (MOA) and Articles of Association (AOA) outlining the company's objectives and functioning.

4.  Name Approval: Submit a proposal with 3 preferred names for the Nidhi company to the Ministry of Corporate Affairs (MCA) for approval.

5.  Registration Application: After name approval, file an application for Nidhi company registration with the MCA.

6.  Certificate of Incorporation (COI): Upon successful registration, you'll receive the Certificate of Incorporation (COI).

7.  PAN, TAN, and Bank Account: Obtain PAN (Permanent Account Number), TAN (Tax Deduction and Collection Account Number), and open a bank account specifically for the Nidhi company.
 

Documents

•  Copy of PAN of Directors and Shareholders
•  Copy of ID Proof of Directors and Shareholders. (Voter ID, Driving License, Passport) 
•  Copy of Address Proof of Directors and Shareholders (Bank Statement/ Electricity bill/ Mobile bill/ Telephone Bill)
•  Passport-sized photographs of all the members
•  Proof of registered office address (rent agreement, utility bills, NOC)
•  Digital Signature Certificate (DSC) for directors
•  Director Identification Number (DIN) for all directors
•  Memorandum of Association (MOA) of the company
•  Articles of Association (AOA) of the company

Fee

To be updated.

Timeline

In order to register a Nidhi Company in India, it usually takes 10 to 15 working days, also depending upon the submission of the application, documents on timely and processing time by ROC.

FAQs