Nidhi Company Registration
India's Top Business Consulting Company
Active Clients
CA / CS
Rating
Income Tax returns
Overview of Nidhi Company
Advantages of starting of a Nidhi Company
Very Easy formation
Starting a Nidhi company or Nidhi registration is very simple and the level of complexness is less in Nidhi Company when compared to other types of finance-related business like NBFC.
Promotes Savings
This type of Company encourages all its members or shareholders to save money and promote a thrifty lifestyle. A Nidhi license is just a mutual benefit society in which members can borrow or lend money and take financial help among them.
Cheaper To Borrow Money
Being a member, one can borrow money at a less interest rate, relative to the interest rate at which banks lend the loan. This is one of the major advantages in times of need, as each individual in the company or mutual benefit society is likely to require funds at a different time period.
Fewer Complications
Borrowing and lending procedure to known persons is fixed and it is much less complicated when compared with the procedure of banks or in an informal setting.
Micro Banking
Nidhi finance registration Company provides banking services to the rural and remote people of India as it designed for far-off locations and is, therefore, devoid of getting at finance from nationalized banks and NBFCs
Checklist online Nidhi company registration
- Nidhi Companies should not advertise or solicit anyone with the expectation of gaining any deposit.
- A Nidhi Company cannot use druthers share capitals or debentures to bring up funds for itself.
- Nidhi Companies cannot provide any brokerage or incentive for granting loans or mobilising deposits. But, the company has the option of employing people with a fixed monthly salary.
- A Nidhi Company cannot open a branch or second office as a subsidiary branch until it achieves a profit for continuous three years.
- A Nidhi Company has no right to accept deposits from non-members of the company or from individuals who are not members of the Nidhi Company.
- Members of the Nidhi Company are not allowed to open a current account under the Nidhi Scheme.
- Hire purchase finance
- Acquisition or insurance of securities supplied by any corporate
- Engaging as an NBFC in the business of loans or advances
- Acquisition of stocks, bonds, shares, securities, debentures and so on issued by any local authority or Govt marketable securities
Mandatory Compliances for Nidhi Company
- NDH 1 : In this form, A Nidhi Company has to submit the list of Nidhi Company members within the time limit of 90 days at the closure of the financial year.
- NDH 2 : In this form, A Nidhi Company can make a request to MCA for an extension, in case it has been unable to add 200 members in its first financial year.
- NDH 3 : Besides the forms mentioned above, A Nidhi Company is also supposed to file a half-yearly return in NDH 3 Form.
- Annual Returns With ROC : It's a compulsory thing that a Nidhi Company should file an annual return with the Ministry of Corporate Affairs through Form MGT-7.
- Profit, Loss And Balance Sheet : In Form AOC-4, A Nidhi Company has to submit financial statements and other related documents.
- Income Tax Returns : Nidhi Company must file annual returns in the following financial year by September 30, like the rest of the companies.
10 things that Nidhi Companies cannot do as a Non-Banking Financial Company (NBFC)
- minimum of 200 members within the time span of one year from commencement.
- And, the company should have an equity share capital of at least Rs 5 lakhs, for nidhi limited company registration. This entire equity share capital amount has to be paid up and the Net Owned Funds (NOF) must increase to Rs 10 lakhs within the time period of one-year from registration.
- Minimum of 10% of its outstanding deposits must have un-encumbered term deposits.
- The prescribed Net Owned Funds (NOF) to deposits ratio must be 1:20 where 10% of the total deposits should be in a fixed deposit account of any national bank.
- This includes free reserves and equity share capital and excludes accrued losses and intangible assets.
Documents Required
From Directors and Shareholders
- Photographs of the Directors and Members of the company
- PAN Card of the Members
- Digital Signature Certificate of the directors
- ID proof of members, such as Aadhar Card or Voter ID etc.
- Address Proof of the Directors
- Director Identification Number or DIN of the Directors.
For Registered Office
- Rent Agreement or the Sale Deed or the Lease Deed of the Registered Office or,
- Address Proof of the Registered Office;
- NOC (No-Objection Certificate) signed by the owner of the Property.
Documents needed to be drafted by CA or CS
- AOA (Article of Association) of the Company
- MOA (Memorandum of Association) of the Company
- MCA (Ministry of Corporate Affairs) form attestation.
Procedure for Nidhi Company Registration in India
Applying for DSC and DIN for directors of the company
Choosing the unique name and Getting the Name Approval
Drafting and filing the MoA & AoA to the Registrar of Companies ( ROC) with the subscription statement. These must contain the main objective of integrating or forming a Nidhi company as a charity.
Getting the certificate of Incorporation (CIN) which takes around 15-25 days. This CIN certificate declares that a Nidhi company has been created and it holds the identification number of the company.
Appling PAN, TAN for the company and it usually takes 7 working days to receive.
Opening a bank account by submitting the MoA, AoA, Certificate of Incorporation, and PAN of the company to the bank.
Frequently Asked Questions
Approximately, a time period of 15 business working days is needed for incorporating a Nidhi Company.
Yes, it is mandatory to use the word 'Nidhi Limited” in the company name. Nevertheless, the term 'Mutual Benefit” can also be used.
At least three directors and seven shareholders are required for a Nidhi Company registration.
No, a minor person is not allowed to become the director of a Nidhi Company. Only an individual who is 18 years old or more can become the Director of a Nidhi Company.
No, there is no need for the promoters to be there or to visit our office personally, as the registration process of Nidhi Company is completely online.
The primary documents needed for Nidhi Company Registration are ID proofs, Address proof of the Registered Office, Address proofs and latest bank statements.
No, there is no restriction on the maximum number of members. However, it is compulsory for a Nidhi Company to have a minimum of two hundred members within one year of commencement.
No, a convicted person is not allowed to become a director or shareholder of a Nidhi Company.
he DSC is nothing but a Digital Signature Certificate issued by certifying authorities (TCS and n-Code) using that certificate you can sign electronic documents. As all documents need a DSC to start up a Private Limited company in India.
Get free Consultation for your company
