Nidhi Company Registration
Ideal for lending and borrowing amongst members
Starting At Rs. 19,999 Onwards
(Takes 30-40 days)
Nidhi Registration Online
Nidhi Registration Online
- 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).
Benefits of Starting a Nidhi Company
The main objective behind building up a Nidhi Company is to urge its individuals to save so that they can meet their monetary prerequisites emerging from time to time easily. By being thrifty they become independent and would meet the future costs that may come up. And the advantage of getting a company enlisted as Nidhi doesn’t end there.
There are lots of favorable benefits to forming a Nidhi Company. Some are listed below:
- Liability is Limited: The liability of Directors and investors of the Nidhi Company is restricted. On the off chance that the organization experiences any misfortune and countenances monetary pain over the span of its business movement, the individual resources of any of the Directors or individuals are not in danger of being seized by banks, creditors, and government.
- Fewer Regulations: Nidhi organizations are administered under the Nidhi Rules, 2014. The Central Government is the directing power controlling its exercises and working. Rules forced by the RBI on Nidhi’s are not many.
- Better Credibility: Nidhi companies appreciate better validity instead of some other individuals based associations like Trusts, Cooperative Societies, or NGOs.
- Better Option for Savings: The main purpose of Nidhi Company’s incorporation is to encourage the habit of saving among the members of the Company. This is how it achieves the other goal of its registration of being mutually beneficial. The Nidhi Companies are to lend and borrow money to and from its shareholders/members only.
- Easy Access of Public Funds: The loans from the Nidhi Company come at a less expensive rate than advances from banks and other NBFCs. For its investors. And the way toward acquiring the loan and tweaked administrations are substantially more advantageous and snappier.
- Ease of Fund: Nidhi Company is the most secure and the least expensive method for welcoming stores from the overall population. You simply need to accept them as enlisted individuals.
- Micro Banking: Nidhis give banking services to the remote and rural public of India which still depend in far-off locations and is, thus, without getting to back from national banks and NBFCs.
- Better Credit Co-operative Society: Nidhi Company is a nearby substitute for a credit co-employable society. Furthermore, along with these lines, increasingly favored by the small financer. When a Nidhi organization has been enlisted, the individuals can profit from a considerable number of advantages of credit co-operative society.
- Simple Processing: Borrowing and loaning to known people, having a place with a similar gathering, is substantially less confounded than managing banks, where the method is generic and fixed.
- Easy Registration Process: The procedure to enroll Nidhi Company with LegalRaahi is very easy and transparent. You don’t have to take any permits from RBI. You simply need to incorporate your organization as an open constrained one with the MCA.
- Single Regulatory Body: After the Amendment in Companies act 2013, Nidhi Companies are supervised by Nidhi Company Rules.
- Low Capital Requirement: Ministry of Corporate Affairs (MCA) orders that the base capital prerequisite of Rs. 5 lakhs for Nidhi. And more, within 1-year, the capital must be raised to at any rate Rs. 10 lakhs. The Fees, DIN, DSC, and Other Expenses are approx. Rs. 25-30,000. These incorporate Government expenses that vary from State to State.
- Fulfilling the needs of Lower & Middle-income groups: Nidhi Companies assume a significant job in addressing the requirements of lower and center pay bunches by giving them money related assistance without complex formalities and documentation.
- Easier Eligible: People getting minimum wages and belonging to lower strata are usually unable to take loans from traditional banks because of their high eligibility criteria. For them, Nidhi Company is a good option to obtain finance because of fewer conditions.
- No External Involvement: Nidhi Companies take assets from their individuals and further gives credit to their individuals as they were. All exchanges are done inside this gathering as it were. In this way, no outer variables are influencing the working of these organizations. The financial specialists/individuals themselves direct the tasks of the organization.
- Separate Entity: Nidhi Company is a different legal entity that can get resources and bring about obligations in its own name.
What is included in Our Nidhi Company Registration Package
DIN for 3 Directors
Digital Signature For 3 Directors
Name search & approval
Company Pan Card
Procedure for Nidhi Company Registration
Though the process of enrolling a Nidhi Company is easy, still, help from an expert is encouraged to finish the different complex forms, filing them and within time. Moreover, In addition, the administration entryways and language are a piece on the difficult side, as well.
Furthermore, LegalRaahi is a specialist in Nidhi Company Incorporations, with more than 7 years of involvement with the field and effectively enlisting more than 500 Nidhi Companies. Our tasks are spread all over India
Step 1: Applying for DIN and DSC
To begin with, the Directors of the Nidhi Company are to apply for DIN (Director’s Identification Number) and DSC (Digital Signature Certificate). DIN is given by the MCA and DSC is an advanced mark utilized for all e-documenting forms. This progression can be skipped for the Director who as of now has DIN and DSC
Step 2: Name Approval
Presently, you have to pick and propose 3 distinct names to MCA for your Nidhi Company. Out of these 3 names, just one will be acknowledged for your Company by MCA. The proposed names must be special and not coordinating with the names of other previously enlisted organizations. According to Rule 8 of the Company Act. The affirmed name will stay legitimate for 20 days as it were
Step 3: MoA & AoA
Affiliation) and AoA (Articles of Association). These must specify the main motive of incorporative a Nidhi company as a cause. The MoA and AoA are to be documented to the ROC (Registrar of Companies) with the membership articulation
Step 4: Certificate of Incorporation (CIN)
It takes between 15-25 days to frame a Nidhi company and get the incorporation certificate. This certificate proclaims that an organization has been made and it specifies the company identification number (CIN) too.
Step 5: PAN, TAN and Bank Account
In conclusion, you have to apply for PAN and TAN. The PAN and TAN are generally gotten inside 7 working days. Afterward, you need to get a financial balance opened by presenting the Certificate of Incorporation, MoA, AoA, and PAN to the back 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.
Restrictions on Nidhi Company
Despite the fact that the sole motivation behind Nidhi company is taking up non-banking financial activities, they are denied to play out those exchanges that may include involve external factors and the public, taking risks, etc. Such as:
- Publicize themselves to encourage deposits,
- Chit funds,
- Leasing Finance,
- Hire-Purchase finances,
- Sell, mortgage, or pledge the advantage kept with it as security for a loan,
- Getting into a partnership for completing lending and borrowing activities,
- Taking deposits or lending funds to somebody other than its investors,
- Issue inclination offers, debentures, or some other obligation instruments,
- Issue equity shares of the nominal estimations of over Rs. 10/- each,
- Provide its shareholder’s value shares surpassing 10 or shares of the value of more than Rs. 100/-,
- Open a present record with its individuals (though it is allowed to open a Savings Account),
- Loan to or take a store from a corporate,
- Pay commission, fee or incentive for mobilizing deposits,
- Carry on any other business than borrowing and lending to its members,
- Hire a Purchase Financer,
- Pay any brokerage for granting a loan to its individuals.
Requirements for Nidhi Company Incorporation
Given below are the essential conditions that must be met with for registering or operating a Nidhi Company.
Requirement before Registration
- Minimum number of shareholders or members – 7
- Minimum number of Directors -3
- The minimum capital requirement is of Rs. 5 lakhs
- DIN for Directors
- Minimum 3 Directors.
- No Preference Shares shall be issued.
- The objective of the company shall be cultivating the habit of saving by receiving deposits from and lending to its members only for their mutual benefits.
Requirement after Registration
- By the end of the 1st year, the number of members or shareholders of the Nidhi Company must be 200 at least.
- NOF should be more than Rs. 10 lakhs.
- The ratio for NOF to Deposit should be more than 1:20.
- Unencumbered deposits should exceed 10 % of outstanding deposits.
Compliances for Nidhi Company
- NDH-1 Form: A Nidhi Company needs to present the rundown of individuals within 90 days from the finish of each money related year, right now.
- 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 likewise required to be documented in NDH-3 Form.
- Annual Returns with ROC: The Nidhi Company needs to record its Annual Returns with MCA through Form MGT-7.
- Profit & Loss Statement and Balance sheet: The budget summaries and other related archives are to be submitted, yearly, in Form AOC-4.
- Income Tax Returns: Nidhi Company, similar to every different business, must document its Annual Income Tax Returns by 30th September of the accompanying monetary year.
Deposits & Loans
Here we understand the regulations governing the loan and deposit under Nidhi Company.
Deposits under Nidhi Company
- There are 3 types of deposit Nidhis can accept. These are Savings, Fixed Deposit (FD), Recurring Deposit.
- Nidhi can pay a maximum interest of up to 12.5% on FD & RD and 6% on a savings account.
- Nidhi can deposit up to 20 times the funds invested.
Loans from Nidhi Company
- 3 types of securities can be accepted for loans on offer by Nidhi Companies. Loans can be provided against Gold, Property, Others (LIC, FD, etc.).
- Nidhi cannot engage in the business of microfinance but can lend at up to 20% interest against security.
- It can take legal action if a member fails to repay any sum of money.