Nidhi Company Registration

A Nidhi company is a type of company in the Indian non-banking finance sector, recognized under section 406 of the Companies Act, 2013. The objective of incorporating a Nidhi Company is to encourage savings as well as frugality amongst its members.

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    Nidhi Company Registration

    A Nidhi company is a type of company in the Indian non-banking finance sector, recognized under section 406 of the Companies Act, 2013. The objective of incorporating a Nidhi Company is to encourage savings as well as frugality amongst its members. To fulfil this objective of cultivating the habit of saving and thrift amongst its members. Nidhi companies
    are allowed to take a deposit from and lend to the members only. In other words, the funds contributed to a Nidhi company come only from its members (shareholders) and are to be used only by the shareholders of the Nidhi Company.

    Documents Required For Nidhi Company Registration

    • Passport Sized photographs of all the directors.
    • ID proof of all the designated directors and shareholders. (PAN card and Passport are valid).
    • Address proof of all the directors and members (Ration Card, Aadhaar Card, Passport, Voter ID, and Utility Bill – electricity/water/mobile).
    • Address Proof of the Company. Make sure that the address proof is not older than 2 months.
    • Copy of the Property papers (if the property is owned).
    • NOC (No-Objection-Certificate) from the owner (if the property is rented).

    Procedure for Nidhi Company Registration

    First, the Directors of the Nidhi company are to apply for DIN (Director’s Identification Number) and DSC (Digital Signature Certificate). DIN is issued by the MCA and DSC is a digital signature used for all e-filing processes. This step can be skipped for the Director who already has DIN and DSC.

    Now, you need to choose and suggest 3 different names to MCA for your Nidhi Company. Out of these 3 names, only one will be accepted for your Company by MCA. The proposed names must be unique and not matching to the names of other already registered companies. As per Rule 8 of the Company Act. The approved name will remain valid for 20 days only.

    Association) and AoA (Articles of Association). These must mention the main objective of incorporating a Nidhi company as a charity. The MoA and AoA are to be filed to the ROC (Registrar of Companies) with the subscription statement.

    It takes between 15-25 days to form a Nidhi company and get the incorporation certificate. This certificate declares that a company has been created and it mentions the company identification number (CIN) as well.

    Lastly, you need to apply for PAN and TAN. The PAN and TAN are usually received within 7 working days. Later, you have to get a bank account opened by submitting the Certificate of Incorporation, MoA, AoA, and PAN to the bank.

    Compliances for Nidhi Company

    • NDH-1 Form: A Nidhi Company has to submit the list of members within 90 days from the end of every financial year, in this Form.
    • NDH-2 Form: It can request MCA for an extension in this Form, in case it has not been able to add 200 members in its first financial year.
    • NDH-3 Form: Other than the above NDH-1 Form, a half-yearly return is also required to be filed in NDH-3 Form.
    • Annual Returns with ROC: The Nidhi Company has to file its Annual Returns with MCA through Form MGT-7.
    • Profit & Loss Statement and Balance sheet: The financial statements and other related documents are to be submitted, annually, in Form AOC-4.
    • Income Tax Returns: Nidhi Company, like all other businesses, must file its Annual Income Tax Returns by 30th September of the following financial year.

    What is included in Our Nidhi Company Registration Package

    Frequently Asked Questions

    What is Nidhi Company?

    Nidhi Company is a category of Non-Banking Financial Company (NBFC) that does not require any license from the Reserve Bank of India (RBI). It is formed for the sole purpose of accepting deposits and lending loans to its members only. It works through its members only.

    Who can get Nidhi Company Registration?

    The Nidhi company must be registered as a Public Limited Company, under the Companies Act, 2013. This essentially means that there are at least 3 Directors and 7 Shareholders. Further, its MoA (Memorandum of Association) must state that the main objective of the proposed company is to promote thriftiness and a habit of savings among its members.

    What is the process of Nidhi Company Registration?

    1. Apply for DIN & DSC,
    2. Search a unique name in 3 options and get approved by ROC for 1,
    3. Submit of MoA & AoA,
    4. Certificate of Incorporation & CIN,
    5. Take PAN, TAN & Bank Account.

    What documents are required for Nidhi Company Registration?

    • Director’s PAN Card copy (ID proof),
    • Passport size photograph of Directors,
    • Copy of address proof of Director,
    • Copy of address proof of company. Property proof (If owned property), Rent agreement (in case of rented property), electricity/water bill, etc. are valid,
    • Landlord NOC (in case of rented property).

    What is the limit on deposits in Nidhi Company?

    A Nidhi company is not to accept deposits of more than 20 times of its Net Owned Funds (NOF) as per its last audited financial statements.

    What is the maximum limit of saving bank account?

    The maximum balance in a savings account of one member of a Nidhi company should not be more than Rs. 1 lakh. The maximum rate of interest that can be paid on any deposits should not be more than 2% above the rate of interest payable by nationalized banks, on such deposits.

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