Nidhi Company Registration in India

Now nidhi company can be started with an initial capital of Rs. 21,000/-* (Inclusive All)

    Nidhi companies are governed by MCA, Nidhi Rules 2014 and RBI.
    Nidhi companies are registered and incorporated in the form of Public Limited Company.
    Easy to register with very less documents.
    Low rate of Interest.
    Promotes small savings among middle and lower class.

Meaning

Section 406 of the Companies Act, 2013 states: The main object of forming this type of company is to cultivate the habit of thrift and savings amongst its members. To receive deposit from and to lend to its members only for their mutual benefit.They are also known as Permanent Fund, Benefit fund, mutual benefit fund and Mutual Benefit Company.


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Requirements :

A nidhi company can be started with an initial capital of Rs.5 lakh and requires at least seven people to start with (minimum 7 members).
Nidhi company registration also requires three directors initially –

Every company registered as a “Nidhi” Company shall have the last words “NidhiLimited”as a part of its name

Every Nidhi Company must have 200 members within a one year from the commencement of business


Benefits of NIDHI :

Nidhi investment plays very important role in helping the middleand lower class sections of the Society

No RBI approval required for registration of this type of NBFC

Promotes small savings among middle and lower class

Easy source of loans to members against collateral

Effective means of savings and loans with minimum documentation

Net owned fund ratio of Nidhi Company is 1:20that means if your invest Rs.1 you will get Rs.20 Deposit.

Number of documents required for the registration are very less

It is a class of NBFCs and RBI is empowered to issue directions to them in the matters relating to their deposit acceptance activities

RBI has exempted notified Nidhi companies from the core provisions of RBI Act

It cultivates the habit of thrift and savings amongst its members

No external interference in the management of the company

Rate of Interest is very low as compared to others.


Nidhi Company cannot enter into :

They cannot start business of chit funds, leasing finance,insurance, hire purchase or acquisition of securities issued by any other body corporate

Nidhi company cannot accept deposit from any other members other than its own members

It cannot pledge any of asset lodged by its own members as security

Lend or deposit money to anybody corporate

Enter in to partnership in its activities of lending and borrowing.

Pay any brokerage or incentives for mobilizing deposit from members.


Documents requirement of the Nidhi Company :

From Directors and Share holders

1. PAN of the Promoters/subscribers and Directors

2. Address Proof of the Promoters/ subscribers and Directors

3. Identity Proof of the Promoters/ subscribers and Directors

4. Digital Signature Certificate

5. Registered Address Proof of office of the Company or ownership documents/lease deed Passport Size Photograph of Promoters/ subscribers and Directors

From CA/CS

1. Memorandum of Association of the Company (MOA)

2. Articles of Association of the Company (AOA)

3. Other attestation Documents

Process of Registration of NIDHI Company :


Step-1


Name approval in RUN Facility:- Applicant needs to check name of their proposed Nidhi Company through RUN facility available on MCA 21.

Step-2


Obtaining DSC

The proposed Directors who will also be a promoters of NIDHI Company have to obtain class 2 DSC

Step-3


File Form Spice 32

PAN card of fist director, Id proof of fist director

Step-4


Utility Bill should be latest one (Electricity/ Bank Statements/ Telephone/ mobile Bill)

Step-5


Proof of registered office required and No objection certificate from the owner

Step-6


Consent and Declaration from the first directors in DIR-2-form.

Step-7


Self-declaration from the first directors and subscribers in FORM INC-9.

Annual Compliances


Form
Time limit
Reasons

Form NDH-1

Form NDH-2- Extension of Time

Form NDH-3

within 90 days from the closure of Financial Year

within 90 days from the closure of Financial Year

within 30 days from the conclusion of each half year
For April- September (30th of October)
For Oct-March (30th of April)

Annual Filing

Company is not complying with minimum member criteria

Half yearly Compliance

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