Nidhi Company registration

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    Starting at Rs 24,999 Onwards

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    (Takes 15-20 Days)

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100% Online, Easy & All India Services

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12+ Years Experienced Team of Professionals

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Total Number of Served Clients

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Availability in Major Indian Cities

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Overview

Nidhi Company is a type of NBFC (Non-Banking Financial Corporation) with the difference that it is not directly regulated by the RBI. RBI has the power to issue directives to them related to their deposit acceptance activities. RBI has exempted the notified Nidhi’s from the core provisions of the RBI Act.

Section 406 of the Companies Act 2013 and Companies (Nidhi Companies) Rules,2014 govern and regulate Nidhi Companies in India.

The objective of incorporating a Nidhi Company is to encourage savings amongst its members and cultivate the habit of savings and thrift amongst its members, receiving deposits from, and lending to its members only for their mutual benefits, which complies with the rules made by the Central Government for regulation for such class of companies.

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Eligibility For Nidhi Company Registration

Before Incorporation

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    Minimum 7 people – Seven people are required to start a Nidhi Company. They should have a minimum of 3 Directors.

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    Minimum Capital – Nidhi Company shall be a Public Company with a minimum capital requirement of Rs 5 Lakhs.

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    Issuance of shares of the nominal value of at least Rs 10 per share.

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    To allot a minimum of 10 equity shares or shares equivalent to Rs 100 to each member.

After Incorporation

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    By end of 01st year, the minimum number of members or shareholders must be 200.

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    Net Owned Fund must be more than 10 lakhs. (Net Owned funds means the aggregate of paid-up equity share capital and free reserves as reduced by accumulated losses and intangible assets)

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    Ratio of Net Owned Funds to deposits should be more than 1:2.

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    Unencumbered deposits should exceed 10 % of outstanding deposits.

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Documentation For Nidhi Company Registration

PROMOTERS

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    PAN Card of all members

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    Address Proof (Driving License, Passport, Aadhar Card)

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    Latest Residence Proof (Electricity Bill, Water Bill, Gas Bill, and Bank Statement)

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    Passport Size Photograph of all members

OFFICE PREMISES

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    Latest Electricity Bill, Gas Bill of Office Premises

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    NOC from Owner /Rent Agreement

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Process

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Digital Signature Certificate (DSC)

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Persons who will be acting as a director and shareholders of the proposed company, need to apply for DSC (Digital Signature Certificate). DSC is required to sign and validate all the documents, as the Registration Procedure is completely online.

Name Approval

2

- Proposed name needs to be approved by ROC. ROC will check the name availability on different parameters and then will issue the approval letter.

Company Incorporation

3

- Once the name is approved, the application needs to be made for the formation of the Company in Form Spice+ and the same is verified by a professional CA, CS or CMA.

Drafting of MOA & AOA

4

Along with Spice+, the MOA & AOA of the Company also need to be filed. A Memorandum of Association (MOA) defines the fundamental of the company and the Articles of Association (AOA) contains the rules & regulations of the Company.

Incorporation Certificate

5

After verification of Spice+, Roc will issue the Certificate of Incorporation. Incorporation Certificate gets issued within 3-4 working days.

PAN and TAN Allotment

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With a certificate of incorporation pan and tan allotment also take place and a soft copy of pan and tan will be received by mail from the Department.

Acceptance of Deposits

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    Nidhi can accept Deposits not exceeding 20 times of its Net Owned Funds

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    Nidhi Company shall be allowed to accept Deposits with the following timeline  Fixed Deposit – 6 to 60 months  Recurring Deposit – 12 to 60 months

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    Interest rate on FD & RD shall be at par with RBI and on Savings shall be 2% more than the rate allowed by nationalized banks.

Loans Issued

Nidhi company can issue Loans to its members based on the following. Maximum loan to a member can be issued

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    Total Amount less than 2 Cr – Rs 2 lakhs

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    Total amount of deposit more than 2 but less than 20 Cr – Rs 7.5 Lakhs

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    Total amount of deposit less than 50 Cr – Rs 12 Lakhs

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    Total amount of deposit more than 50 Cr – Rs 15 lakhs

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    Interest Charges on any loan given by Nidhi company shall not exceed 7.5% above the highest rate of interest offered on deposits by Nidhi and shall be calculated on reducing balance method.

FAQ

Any Questions? Answered

Our FAQ section addresses common inquiries to help you find the information you need quickly. If you have further questions, feel free to reach out!

Nidhi Company can be formed with a minimum of 3 Directors and 7 Shareholders. This is the minimum requirement to form a Nidhi Company.
A Nidhi Company can only operate in the State where it is registered. Thus, it cannot conduct any activity in another State.
Nidhi Company can be incorporated only with the objective of developing the habit of thrift and reserve funds among the members, it can also receive deposits and lend money to its members.
Nidhi Companies are governed by Nidhi Rules, 2014. Nidhi Company is formed as a Public Limited Company by the Ministry of Corporate Affairs. Thus, Nidhi Company needs to comply with the rules of the Companies Act 2013 and Nidhi Rules, 2014.
Nidhi Company can issue Loans only to its members, it cannot issue loans to any person other than its members. Nidhi Company activities are restricted only to its members.