Nidhi Company Registration in India

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Nidhi Company Registration

All you need to know

Nidhi Company is registered under the Companies Act, 2013.  “Nidhi” is a Hindi word, which means finance or fund. Nidhi Company is incorporated with an objective to cultivate savings habit among members and to provide finance among members only. It is allowed to accept deposits from its members and can lend only to its members. Hence, it cannot accept deposits or lend from/to non-members.  So, the funds contributed to a Nidhi company are only from its members (shareholders) and used only by the shareholders of the Nidhi Company.

 

Nidhi Company is Non-Banking Financial Company (NBFC) which require a license to work.  There are no separate registrations to be done under RBI for a Nidhi company, RBI is empowered to issue any directives to them. Nidhi Companies are as such exempted from main provisions otherwise applicable to an NBFC in India.  It requires atleast 7 members and 3 directors to start with. As a part of suffix, all such companies must append “Nidhi Limited” after its name.  Nidhi Company is very easy to form and there are minimum compliances.

Nidhi Company Registration Fees

BASIC

13999 (All Inclusive)
  • 7 Digital Signature Certificates
  • 3 Director Identification Numbers
  • 1 Name Approval Application under RUN
  • PAN
  • TAN
  • 10 Copies of Share Certificate
  • 25 Copies of MOA
  • 25 Copies of AOA
  • Company Seal
  • Share Allotment for upto 200 shareholders

STANDARD

19999 (All Inclusive)
  • 7 Digital Signature Certificates
  • 3 Director Identification Numbers
  • 1 Name Approval Application under RUN
  • PAN
  • TAN
  • 10 Copies of Share Certificate
  • 25 Copies of MOA
  • 25 Copies of AOA
  • Company Seal
  • Share Allotment for upto 200 shareholders

Advantages of a Nidhi Company

QuickBiz is a technology driven platform which offers legal & financial services over its team of professionals. Before applying this services applicant should know the list of advantages of this service in India.

Separate Legal Entity

A Nidhi company is a separate legal entity which possess all the rights to sue or to be sued. A company is a separate legal entity from its promoters/owners and management in the eyes of law. It acts an artificial person which can buy a property on its own name and it can operate on its own name.

Easy Availability of Funds

Nidhi Company is the most secure and most accessible way of accepting deposits from the end of the general public. The only requirement is that they should be the registered members.

Cultivate Savings Habit

A Nidhi company encourages its members to cultivate the habit of saving money. It is allowed to accept deposits from its members and can lend only to its members.

Easy Registration

The registration process of Nidhi Company enjoys freedom from all kinds of complexities. As less documentation process exists from the beginning to end in Nidhi Company Registration, initiating a Nidhi Company is an easy task. In addition to this, the registration process gets completed within one or two weeks.

Limited Liability

If the company goes into liquidation, the personal assets of the members will not be used to pay off the liability of the company. As per the Companies Act, 2013, directors and shareholders are having limited liability.

List of Documents for Nidhi Company

Our mission is to offer excellent support to our client in respect of all the legal compliances on affordable rates. Have a look at the list of documents required to avail this service.

Documents of Shareholders/Directors
  • Two coloured Photographs of all the Directors and Members
  • PAN card of all the Directors and Members
  • Identity Proof (Copy of Voter ID / Driving License/ Passport) all the Directors and Members
Registered Address Related Documents
  • Address Proof (Bank Statement / Electricity, Mobile, Telephone Bill)

How to Incorporate Nidhi Company

Nidhi Company Registration Process in 5 steps
  • 1.Application of DSC
  • 2. Selection of suitable name
  • 3. MOA & AOA Submission
  • 4. Get Incorporation Certificate of Company
  • 5. Get PAN & TAN of Company

FAQs On Nidhi Company

Get answers to all your queries

A Nidhi company is registered as a Public Limited Company. Therefore, the requirements for incorporation of a Nidhi company covered a minimum of three Directors and Seven Shareholders. However, the MOA of a Nidhi company must state that the primary objective of the proposed company is to nurture and promote a habit of thriftiness and savings among its members, and accept deposits from or lend loans only to its members, for the mutual benefits of them.

Minimum 7 members are required to incorporate Nidhi company but it has to increase the number of members upto 200 within a year.

 

Ministry of Corporate Affairs is the responsible authority for regulating Nidhi Company and is also accountable for Nidhi Company Registration. Provisions of Nidhi Rules, 2014, are being followed for doing all the activities.

 

To become a member of Nidhi Company, an individual should meet the following requirements:

  • The member must be over 18 years of age.
  • Only an individual is eligible to become a member. No trust or any corporate body can become a member.

No, Nidhi Company cannot perform its operations outside the boundaries of the state in which the registration has taken place.

No, Nidhi Companies cannot advertise their activities.

A Nidhi cannot accept deposits exceeding 20 times of its net owned assets as mentioned in the last audited statements.

No, a Nidhi company cannot borrow from an outsider. In the same way, it also cannot lend to an outsider who is a non-member.

It takes almost 30-40 days for the completion of the registration process.

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