Nidhi Company Registration

24999 (All Inclusive, may vary as per State)*

Service Fees Includes for

Free Professional Consultation

‘Nidhi’ with an object of collecting deposits and lending to its members only

DIN of 3 Directors & DSC of 7 Persons AND onetime ‘RUN’ form (apply 2 Names- 2 Times)

Authorised Share Capital up to Rs.10,00,000/-

Quick and on time processing

Information check by Qualified professional

Best & Quick future support

Best compliance fees in our ‘All in one’ package

Not includes- additional stamp duty payable in case of selected states (Gujarat, Kerala, MP, Punjab, Rajasthan)

Excluding addition of Rs. 1,000 for every increase in director or shareholder

FACTS & INFO

  • 1
    Filing of RUN for reserving name of company

    RUN stand for Reserve Unique Name, two different company name can be filed two times by this form and name can be reserved for maximum 20 days.

  • 2
    Application for Digital Signatures- DSC

    Digital Signatures have to be used to sign company formation application digitally and required for each unique director and shareholder.

  • 3
    Preparation of necessary legal documents

    These documents includes some ID, Address and Other docs as per Companies Act 2013.

  • 4
    Submission of Company Incorporation through 'SPICE+' with MCA

    SPICE stands for simplified proforma to incorporate company electronically. This integrated form includes all details related to proposed company.

  • 5
    Issuance of Certificate of Incorporation with PAN-TAN

    Certificate of incorporation is a final document of proof that company has been registered. This contains a CIN, PAN & TAN of new company.

  • 6
    Opening of bank A/c & Filing of Form 20A

    Opening of bank a/c to deposit share capital by shareholders and after that filing of mandatory form INC-20A (commencement of buisness) with 6 months of INC

Documents required to register a Nidhi Company Registration

For Owner/Individual/Director/Partner

Photograph of Director & Shareholder

PAN of Director & Shareholder

ID Proof- Aadhar and Votor ID/Passport/Driving License

Address Proof- Telephone-Mobile Bill /Electricity Bill/ Bank Account Statement/PNG Gas Bill (not older than 2 months)

For Organization/Buisness/Entity/Compliance

Lease Agreement or NOC from owner

Any Utility Bill like Electricity, Telephone, Gas or Water

Final Deliverables

DIN of Directors & DSCs of all the Directors & Shareholders.

Certificate of Incorporation of the Company

Memorandum of Association (MoA) & Articles of Association (AoA)

PAN & TAN of the Company

Bank Account Assistance

EPF-ESIC (Labour Identification Number) & GST Registration as per Govt.

Explore Frequently Asked Questions - Nidhi Company Registration

Q. What is a Nidhi Company and its features?

Ans. A Nidhi Company is a Company which carries on the business of accepting deposits and lending the same on demand to its members only. The main aim of these companies is to work for the mutual benefit of its members. Features of a Nidhi company includes:

  • Main obejct is to generate the habit of using money resources/savings at best level and receiving deposit from and/or lending to its members only.
  • They are mutual benefit societies, because their dealings are restricted only to the members; and membership is limited to individuals.
  • Rerserve Bank of India has exempted the notified Nidhi’s from the core provisions of the RBI Act and other directions applicable to NBFCs.
  • To be incorporated under this Act shall be a Public Company.
  • Minimum paid up equity share capital required is Rs. 5,00,000/-.
  • Preference share cannot be issued in Nidhi COmpany.
  • Minimum number of members should be 200 within one year of Incorporation.
  • Net owned funds shall be Rs.10,00,000/- within one year of Incorporation.
  • Cannot have any dealing with Non-Members.

Q. What are the main conditions applicable to Nidhi Companies?

Ans. Some of the conditions applicable to Nidhi Companies are:

  • To follow the object of cultivating the habit of thrift (best use of financial resource) and savings amongst its members, receiving deposits from and lending to its members only for their mutual benefits.
  • Every Nidhi shall ensure that its membership is not reduced to less than 200 members at any time.
  • A minor shall not be admitted as a member of Nidhi.
  • Minimum number of proposed members shall be 7 and proposed directors shall be 3 at the time of incorporation.
  • Must have a minimum paid up equity share capital of Rs. 5,00,000/-.
  • Filing of Form NDH-1, NDH-2, & NDH-3 to maintain proper compliance with ROC.

Q. What are the requirements for registration of Nidhi Company in India?

Ans. Main requirements includes

  • At least 3 Directors.
  • At least 7 Members.
  • Minimum paid up Capital Rs 5 Lacs.
  • Main objective should be careful use of money and savings among its members. And it can accept deposits and lend money only to its members and shall work for the mutual benefit of its members.

Q. What are post incorporation requirement of a Nidhi Company?

Ans. A Nidhi company should have to maintain following within 1 year of incorporation or thereafter:

  • Maintain at least 200 members/shareholders at every time.
  • Minimum Net Owned Fund should be Rs. 10 Lakhs. (Paid up capital+Free reserves).
  • Unencumbered (free of debt) Term Deposit must be at least 10% of the term deposit.
  • The ratio of Net Owned Fund to term deposit should not be less than 1:20.
  • Nidhi Company shall file Form NDH-1(Return of Statutory Compliances) within 90 days of financial year.
  • Extension of time in Form NDH-2 if first four conditions not met.
  • Company shall file Form NDH-3(Half Yearly Return) within 30days of half year.
  • Every Director of the Nidhi shall be its member also.

Q. What are the advantages of Nidhi Company?

Ans. Nidhi compant can have following advantages: 

  • It is a single office institution governed exclusively by its members with no involvement of the third party.
  • Provide loans at minimal interest rates and minimum documentation to its members.
  • Secured investments are guaranteed by such companies.
  • Provide fund Benefits and Mutual Fund Benefits to members.

Q. Whether the Deposits with Nidhi Company safe and secured?

Ans. Yes, the Deposits with such companies are safe and secure because the Ministry of Corporate Affairs and Reserve Bank of India has framed rules and regulations to ensure the safety and security of Deposits.

Q. How the Nidhi Company utilizes the Funds procured by it?

Ans. The Nidhi Company uses the funds in lending to shareholders as per Nidhi Rules. It lends such money in the form of small loan for business and finance and also invest in secured investments area.

Q. Who can become the shareholder/member of Nidhi Company?

Ans. Any person who is above 18 years of age as per the standard age proof can become a member of the Nidhi Companies. A minor cannot be a member of Nidhi company.

Q. What are the main Restrictions on Nidhi Company?

Ans. Nidhi Companies are not allowed to do the following:

  • Cannot start the business of chit funds, Insurance, Hire Purchase Finance, Leasing Finance and acquisition of shares issued by companies.
  • Cannot issue securities such as preference shares, debentures etc.
  • Prohibited from opening any current account with its members.
  • Cannot enter into partnership for doing lending and borrowing business.
  • Not allowed to acquire any other company.
  • Cannot accept deposits from or lend to any person, other than its members.
  • Cannot pledge any of the assets lodged by its members as security.
  • Cannot pay any brokerage or incentive for mobilising deposits from members or for deployment of funds or for granting loans.
  • Cannot advertise to accept deposit.

Q. What are the rules relating to Director of Nidhi Company?

 Ans.

  • The Director shall not hold office for a term up to ten consecutive years.
  • Shall be eligible for re-appointment only after the expiry of two years from the date of expiry of ten years period.

Q. What are the Statutory Compliances for Nidhi Company?

Ans. Provision related to compliance is more or less is same as Public Company. Following are regular forms which have to file for Nidhi Companies:

  • NDH-1: Within 90 days of closure of first financial year after its incorporation certifying that the Nidhi Company has duly complied with its post incorporation compliances.
  • NDH-3: Half yearly return shall have to be filed within 30 days from the conclusion of each half year.
  • Further, the Income Tax provisions for a Nidhi Company and a normal Company are the same.
  • Annual filing complainces can include forms AOC-4, MGT-7, ADT-1, DIR 3 KYC and Form 22A etc.

Q. What is the minimum time required to register a Nidhi company?

Ans. Around 2 to 7 working days subject to govt approvals and providing all documents.

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