Nidhi Companies are special business entities in India that are created to inculcate the habit of thrifting and saving between the company’s members. Nidhi companies are permitted to make borrowings from their members and also lend capital to their members. Hence, the amount that is contributed to a Nidhi company comes only from the members or stakeholders. Therefore, Nidhi companies are mainly promoted for savings, especially among women from the middle class and poor backgrounds. It creates a legal scape for some sense of liability to conduct official business rather than resort to unofficial lending. Thus, Nidhi Companies also act as a conduit to promote the eradication of black money circulation for internal loans and lending. Registering a Nidhi Company in compliance with all the required laws is simple. We ease your job by completing all formalities and documentation work as well as applying to the MCA in accordance with the corresponding guidelines.
The following are the major advantages of incorporating a Nidhi company in India
Nidhi Company works with the objective of increasing savings of its members.
It is very easy to make donations and get loans from the company for its members.
The loans given to the members at a lower rate compared to the market rate hence it attracts the members to do more savings.
Nidhi Company though it is a finance company and falls under the category of NBFC, does not require approval of RBI.
The investments in the Nidhi Company are secured ones. The risk of non payment of loans is less as compared to other finance businesses.
The Governing Authority sets the following Conditions for Incorporating Nidhi Company in India:
Minimum number of members: 7 (3 members should be the designated directors)
minimum equity share capital: Rs. 10 lakhs
Must have limited company status under Company Act, 2013.
Mandatory inclusion of the Company's object in MOA reflects its intention to foster the habit of thrift and savings among the members.
Registered business place proof such as lease or rent agreement.
A Nidhi company, is one that belongs to the non-banking Indian finance sector and is recognized under section 406 of the Companies Act, 2013. Their core business is borrowing and lending money between their members. They are also known as Permanent Fund, Benefit Funds, Mutual Benefit Funds and Mutual Benefit Company.
The following are the steps involved in registering a Nidhi Company in India:
RUN Name Approval (RUN - Reserved Unique Name)
Apply for DIN
Process of Incorporation
Preparing for MOA & AOA
Finally, we are getting COI (Certificate of Incorporation)
COI (Certificate of Incorporation)
MOA
AOA
PAN
TAN
| KYC (Aadhaar, PAN, Voter ID, Email Id, Passport Size Photo, Signature, Mobile No.) |
| Utility Bill (Electricity Bill/Telephone Bill /GAS Bill) |
| Latest Bank Statement of all the Promoter/Subscriber/Members |
| Rental Agreement with Business |
| Others, if Any Required |
1. How many people are required to register a Nidhi Company?
A minimum of 3 directors and 7 shareholders are required to register a Nidhi company in India.
2. What are the requirements to be a Director?
The Director needs to be over 18 years of age and must be a natural person.
3. Is an office required to start a Nidhi Company?
An address in India where the registered office of the Company will be situated is required. The premises can be commercial/industrial/residential where communication from the MCA will be received.
4. Do I have to be present in-person to incorporate a Nidhi Company?
No, you don’t have to be present at our office or appear at any office for the registration of a Nidhi Company.
5. What is a Digital Signature Certificate?
A Digital Signature establishes the identity of the sender or signee electronically while filing documents through the Internet. The Ministry of Corporate Affairs (MCA) mandates that the Directors sign some of the application documents using their Digital Signature.
6. What are the documents required for Nidhi Company registration?
Identity proof and address proof are mandatory for all the proposed Directors of the Nidhi Company. PAN Card is mandatory for Indian Nationals. In addition, the landlord of the registered office premises must provide a No Objection Certificate for having the registered office in his/her premises and must submit his/her identity proof and address proof.
7. What is DIN?
Director Identification Number is a unique identification number assigned to all existing and proposed Directors of a Company. It is mandatory for all present or proposed Directors to have a Director Identification Number. Director Identification Number never expires and a person can have only one Director Identification Number.
8. Who regulates the Nidhi Companies?
Ministry of Corporate Affairs regulates Nidhi Company and is also accountable for Nidhi Company Registration.
