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Nidhi Company Registration

Nidhi Company

A Nidhi Limited Company can be formed under section 406 of the company act 2013. It is regulated by MCA (Ministry of Corporate Affairs). RBI has full authority to issue directions in the activities of the nidhi company just as other banking and Non Banking Financial Companies ( NBFC) follow the rules of RBI similarly Nidhi Limited Company also has to follow the rules and regulations made by RBI. The Nidhi Limited Company in India is formed to inculcate the habit of saving and saving among its members. These companies only deal with their members. Nidhi Limited Company is formed by members with the objective of saving and investing in mutual funds.

Nidhi Limited Companies are governed by Nidhi rules 2014. Most of these features are from a Public Limited Company.RBI approval is not necessary to register these companies because RBI has given special exemption. To follow the main provision in the NBFC category, every nidhi company has to ensure that its members are 200.

The Nidhi Limited Company refers to a company that grows the savings of its members and encourages them to investment in more mutual funds. This company lends deposits to its members only for their mutual benefit.

Know the basics

Minimum Requirements

Number of Members

Minimum 7 members and 3 directors (These 7 members three directors can be appointed)

Minimum Capital Requirement

Minimum capital requirement for a Nidhi Limited Company is Rs. 10,00,000.

Ratio of net owned funds

The ratio of net owned fund to deposit of should not more than 1:20

Documents required for the registration of a Nidhi Company

  • PAN card of all the Directors and Members.
  • Aadhar card /Voter ID/Passport
  • Photograph of all Directors and Members
  • Electricity Bill or Rent agreement for address proof
  • Latest Bank Statement not older than 2 months is required for all the Directors and Shareholders of the company.

Registration Process for a Nidhi Company

  • 1.Identifying the directors and shareholders

    It is mandatory for any Nidhi limited company to have at least 3 Directors and 7 Shareholders to register. The company should have a minimum of 200 shareholders within one year for the date of incorporation.

  • 2.Digital Signature Certificate (DSC)

    List of documents is given below:

    • PAN Card
    • Aadhar Card
    • Electricity Bill or Rent Agreement
    • Bank account Statement 1st page (signed by the bank)
    • Application form filled and signed
    • Photo ID card issued by any government authority bearing the signature of the individual.
  • 3.Get directors identification number

    The DIN is an essential document for the registration. The following documents are required for the DIN

    • Electricity bill/ Bank statement/Gas bill/Mobile Bill
    • Copy of PAN self attested
    • Copy of Passport
  • 4. Name Approval

    It is necessary to fix the name of the organisation while registering. This name should not be similar to any other company, only then this name will be recognised.

  • 5. Execution of company registration documents

    After the name of the company is approved, the company corporation document are executed by the promoters in the prescribed format.

  • 6. Submission of document to the ROC

    After the memorandum of association (MOA) and article of association (AOA) are ready, the company should be submitted to the rock centre for registration.

Advantages of a Nidhi Company

  • The creation of a Nidhi Limited Company is simpler than other forms of non banking finance companies and finance companies.
  • It encourages members to do more savings.
  • Nidhi limited company does not need to get permission from RBI (Reserve Bank of India) to register.
  • It takes minimum time to get registered compare to other companies.
  • No more documents are required to register to this company.
  • The interference of outsiders is not allowed in Nidhi Limited Company so that the operation of the Nidhi Ltd Company can be done continuously.
  • The loans given to the members are at the lower rate of interest than the market rate.

Deposits and loans under Nidhi Company

Saving Deposit

The maximum amount of saving account in a given period interest should not exceed Rs. 100000 and the rate of interest shall not exceed the saving bank account by the nationalized bank.

FD (Fixed Deposit)

The maximum interest rate on fixed deposit cannot exceed the rate of interest provided by RBI for non banking financial organisations.

RD (Recurring Deposit)

It is a unique term deposit that is offered by Indian banks. It is investment tool which allows people to make regular deposits and earn decent returns on the investment.

Gold Loan

Mortgage loan on silver, gold and jewellery. The total value of loan should not exceed 80% of the total value of gold, silver and other jewellery.

Loan on immovable property

Immovable property loan repayment period shall not exceed 7 years and repayment of loan shall not exceed 50% of the total loan amount.

Attractive Plans

BASIC
16999
  • 1 Name Approval
  • 7 DSC, 7 DIN
  • 5 Lakh Authorised Capital
  • MOA, AOA
  • Incorporation Fee
  • Stamp Duty, PAN, TAN
  • ESI, PF Registration
  • Incorporation KIT
  • HR Toolkit
  • Nidhi Lon Module
  • Offline Accounts Module
STANDRED
22999
  • 1 Name Approval
  • 7 DSC
  • 3 DIN
  • 5 Lakh Authorised Capital
  • MOA, AOA
  • ESI/PF
  • Branch Management
  • Head Office Management
  • All Stationery Design
  • Loan Module
  • HR Toolkit
  • 3 Months Hand Holding Support
PREMIUM
89999
  • 1 Name Approval
  • Incorporation Certificate
  • 7 DSC
  • 3 DIN
  • 10 Lakh Authorised Capital
  • MOA, AOA
  • ESI, PF Registration
  • Incorporation KIT
  • Advance Level Nidhi Banking Software with Admin/Branch/Member/Associate/CSP Panel
  • Website Design
  • Plan Create
  • PPT Design