SSM Adroit Advisors

Nidhi Company is a type of Non-Banking Financial Company in India incorporated and regulated by the Section 406 of the new Indian Companies Act, 2013. Apart from this section, the Companies (Nidhi Company) Rules of 2014, and the Chapter XXVI of the Companies Rules, 2014 also comply with it. This Company has been established under the Ministry of Corporate Affairs. The significances of Nidhi Company Registration in India are receiving deposits and lending the amount within the members and for the members only. The aim of the Company is to work for mutual benefits and develop the habit of saving among its members. The direction of the Nidhi Limited when it comes to accepting deposits has been authorized by Reserve Bank of India. Nidhi Company raises funds by Recurring deposit (RD) and a fixed deposit from its members. Moreover, it borrows to its members upon Gold, Shares, RD, FD, Bonds, and Properties.

At SSM-ADROIT we provide hassle free online company registration process for Nidhi Company Registration within 15-20 working days. The benefits that businesses are getting from the Registration of Company are smooth functioning and less compliance. Nidhi Company is registered under the Ministry of Corporate Affairs. This type of Company does not need the approval from Reserve Bank of India but does require to follow its guidelines. Nidhi Company Registration is a procedure for establishing a kind of NBFC in India popularly known as Mutual Benefit Finance Company. For all Nidhi Companies, it is necessary to have "Nidhi Limited" at the end of their name. This Company can be established with a minimum paid-up share capital of Rs 5,00,000. It should have atleast 200 members at the time Company Incorporation.

Rules for Nidhi Company

The Central Government has made ‘Nidhi Company Rules, 2014’ to carry out the objectives of ‘Nidhi companies'. These rules must apply to-

Every company which had been listed as a Nidhi Limited or Mutual Benefits under Section 620A(1) of Companies Act, 1956.
All companies working on the policies of a Nidhi company or Mutual benefit society but has either not applied for or has asked for and is awaiting notification to be a Nidhi Limited/ Mutual Benefit Society under Section 620A(1) of Companies Act, 1956.
Each Nidhi Company Incorporation under the provisions of Section 406 of the Companies Act, 2013.

Requirements before and after Nidhi Company Registration

1. Before Nidhi Company Incorporation:

Minimum 7 shareholders
At least 3 Directors
Minimum Capital of Rs. 10 Lacs
DIN for all directors

2. After Nidhi Company Incorporation:

Minimum number of 200 Shareholders
Net owned Fund must not be less than Rs. 10 Lakhs
Burdenless deposits of not less than 10% of the outstanding deposits.
Net owned funds to deposits ratio must be more than 1:20

Benefits of Nidhi Company Registration Online

The Nidhi company registration offers numeral reasons why not to register it. Let's have a look:

Separate Legal Existence

It has a separate legal entity from its promoters and shareholders. Nidhi Limited can get the property on its name and also acquire debts.

No RBI Regulations

The Nidhi Company never required to get approval from the Reserve Bank of India. Also, there is no need for License from RBI for running a loan busniess in India. But it has to adhere to the RBI's guidelines.

Get credit at a lower rate

The company offers loans to its members at an economical rate of interest than the market rate.

Limited Paid-up Capital Requirement

The Ministry of Corporate Affairs has made it mandatory to have at least Rs. 10 Lacs as paid-up capital to commence a Nidhi Company. And the liabilities of the director is same as per Companies Act 2013.

Easy to incorporate

Nidhi Company Incorporation is straightforward. It just required to get registered as a public company with the MCA. The minimum amount of capital is required as per Nidhi Rules, 2014. The functioning and executing variations in Nidhi Limited is smooth and easy as compared to other NBFC.

Perpetual Existence

It is not affected by the demise or departure of any one or all of its shareholders. So, a registered company will not be affected even after the death of the partner.

Credibility in market

The Ministry of Corporate affairs manages Nidhi Companies. Therefore, it estimates more reliable as compared to different institutions in the same sector controlled by state governments.

Documents Required For Nidhi Company Registration

Copy of Director’s PAN Card
Passport size photograph of Directors
Copy of Aadhaar Card/ Voter identity card of directors
Copy of Rent agreement in case of property is rented
Electricity/ Water bill/ Telephone bill of Business Place
Copy of Property papers in case you own a property
NOC signed by (owner/ landlord)
DSC (Digital signature certificate) & DIN (Director Identification Number) of all the directors.
MOA & AOA

Process of Nidhi Company Registration

The Ministry of Corporate Affairs (MCA) has allotted an integrated incorporation form INC-32. So soon, an OPC can be incorporated online by filling the Simplified Proforma for Incorporating Company Electronically (SPICe) form in Form INC-32 using DSC of the Director together with online MoA in Form INC-33 and AOA in Form INC-34.

The Nidhi Company Registration Process are given below:

Apply for DSC & DIN

First of all, the partners have to register for DSC (Digital Signature Certificate) and DIN (Director’s Identification Number) for Nidhi Company. DIN allots by the MCA and DSC is a digital signature applied for all e-filing processes.

Approval of Name

You have to give 3 separate name choices for Nidhi Company to MCA of which one will be picked. So, the Names given should be unique and suggestive & descriptive of a company’s business.

Submission of MOA & AOA

After the name approval, one must draft a Memorandum of Association and Articles of Association (MOA&AOA). MOA & AOA are registered with the MCA with statements of subscription.

Obtain a certificate of incorporation

To get a registration certificate of the Nidhi Company, it takes 15-25 working days. Incorporation certification is evidence that the company has been formed. It also involves your CIN number.

Apply for PAN, TAN and Bank account

After getting the certification of incorporation, you need to apply for PAN and TAN. This is important to apply because, after receiving the certificate of incorporation MOA, AOA and PAN with bank account details are required details.

Nidhi Registration