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Nidhi Company Registration in Mumbai

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Nidhi Company Registration Mumbai

Nidhi Company registration in Mumbai- Nidhi means “Treasure”. A Nidhi Company is a company that is formed for Deposit and Lending activities within the members (members only).
Nidhi Companies are categorized as a class of NBFCs and governed by section 406 of Companies Act 2013 read with Nidhi Rules 2014. Although Nidhi Companies are classified as NBFCs, RBI approval is not necessary to register the company. Due to their dealing with funds of members only (no public funds involved),RBI has exempted Nidhi Companies from core provisions of RBI Act and other directions applicable to NBFCs..

Mumbai take the title of India’s commercial and financial capital with great talents and potential customers. Thus, entrepreneurs looking for big investors chose Mumbai as their destination. Mumbai is one of the best destination at the present for all the start-ups. Entrepreneurship in Mumbai is attractive because of the infrastructure and talent. Mumbai is the commercial capital of India, trails Bengaluru and Delhi-NCR when it comes to startups, according to NASSCOM’s Startup India
With Mumbai being the hub of all startups, Nidhi Companies Registered in Mumbai can cater to the funding needs of entrepreneurs to start their dream startups in Mumbai becoming shareholders of the Nidhi Company. By outsourcing Nidhi Company Registration in Mumbai to us you can focus on the core business activities and nurture your business..

cor process
Procedure
Package
Steps
Advantages
Document
Requirement
FAQ

Procedure For NIDHI Registration

Fill Up Application Form

Complete our Simple
Form

Complete our Simple
Form

You are required to fill in the details in our simple questionnaire and submit documents.

Obtain DSC
DPIN for

Obtain DSC
DPIN for

We will provide you with DSC and DIN. To proceed further, you need to give your approval.

Executive will Process Application

Verifcation &
Name Approval

Verifcation &
Name Approval

For further procedures, details provided by you will be verified by our experts.

Document
Submission

Document
Submission

We will create all the required documents and file them with ROC on your behalf.

Get Confirmation on Mail

Get Confirmation By
our Team

Get Confirmation By
our Team

Once your company is incorporated, we shall send you all the documents and DSCs.

Package Included

DIN for 3 Directors
Digital Signature For 3 Directors
Name search & approval
MOA/AOA
ROC Fees & Pan card

Steps for Nidhi Company Registration

Application of DSC and DPIN

DPIN and a digital signature are necessary for Nidhi Company and all the partners have to apply for Nidhi Company. DPIN or Director’s PIN Number is issued by the Ministry of Commerce and Affairs- Govt. Of India.


Name Approval

3 options are needed to be submitted as an option for the name of your Nidhi Company to the MCA, out of which one will be selected. Names provided should be Unique and Innocent.


MOA and AOA Submission

MOA and AOA need to be submitted after the approval is granted for the name. Both MOA and AOA are filed with the MCA with the subscription statement.


Get Incorporation Certificate

It typically takes 15- 25 days to form a Nidhi company and get the incorporation certificate. Incorporation certification is proof that the company has been created. It also includes your CIN number.


Apply For PAN, TAN and Bank Account

Then you need to apply for PAN and TAN. PAN and TAN are received in 7 working days. Post this, you can submit the Incorporation certificate, MOA, AOA and PAN with bank to open your bank account.


Factors in Nidhi Company Name Selection

Name of the Nidhi Company should be decided keeping in mind the following factors-

  • Short & simple
  • Meaningful and unique
  • Should not be illegal or offensive
  • Should not violate any law
  • Should not use “British India”

Advantages of Nidhi Company

  • No Minimum Share Capital is Require
  • Tax Benefits
  • Easy Transfer of Ownership
  • No need to use “Nidhi” or “Limited” title
  • No need to use “Nidhi” or “Limited” title
  • Clear Objectives for easy donations and loans
  • Easy to Manage
  • Exemptions and Privileges under Companies Act, 2013
  • Relaxation in Compliances

Documents Required

Name of the Nidhi Company should be decided keeping in mind the following factors-

  • Copy of Director’s PAN Card
  • Passport size photograph of Directors
  • Copy of Aadhaar Card/ Voter identity card of directors
  • Copy of Rent agreement(If rented property)
  • Electricity/ Water bill (Business Place)
  • Copy of Property papers (If owned property)
  • Landlord NOC (Format will be provided)

Requirements for Registration in Delhi

Minimum 7 shareholders
Minimum 3 Directors
Minimum Capital of Rs. 10 lacs
Use of Word “ Nidhi Limited” in its name
Nidhi Company registered under this act is registered as public company.

Requirements after Incorporation

The requirements for minimum number of members, net owned funds etc is provided under Sub-Rule (1) of Rule 5 of the Nidhi Rules , 2014 as follows; Every Nidhi company shall ensure within a period of one year from the commencement of Nidhi Rules that it has:

  • Members not less than 200
  • Unencumbered term deposit of not less than 10 per cent of the outstanding deposits as specified in rule 14,,
  • Net Owned Funds of ten lakh rupees or more,
  • The ratio of Net Owned Funds to deposits of not more than 1:20.

FAQ

A Nidhi Company falls in the category of “Non-Banking Financial Companies (NBFCs)”, which 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 it’s members only.

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, it’s “MoA (Memorandum of Association)” must state that the main objective of the proposed company is to promote thriftiness and a habit of savings among it’s members.

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.

• 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).

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

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.

A Nidhi can be incorporated with a minimum of 3 directors and a maximum of 15 Directors.

You need to ensure that the name is not similar to any other company which is already registered (Whether it is a Private Limited, OPC, LLP, or Public limited company). Also, make sure that the name is not a registered trademark taken by someone under the IP Act of India. Also, make sure that the name is not too generic. Otherwise, the ROC may reject it. Moreover, try not to use abbreviations, adjectives. And it should end with Nidhi Limited.

Nidhi Companies are regulated by Nidhi companies Rules, 2014. These rules were introduced by the Central Government and contain the regulatory policies for Nidhi company operations.

1. An individual person, not a corporate body or trust, can become a member. 2. The person must be over 18 years of age and a citizen of India.

Once a Nidhi Company has been registered, it must meet the following requirements within 1-year: 1. Register at least 200 members. 2. Maintain minimum net owned funds (NOF) of Rs.10 Lakhs. 3. Maintain NOF to deposit in a ratio of 1:20. 4. Of all the outstanding deposits, at least 10% must be unencumbered term deposits.

It takes approximately 30-40 days to register a Nidhi company. You need to register the company as a limited company under the Companies Act, 2013.

No rules have been laid down barring a salaried person to become a director of a Nidhi Company.

No, a Nidhi Company can be opened at a residential address or a rented one. You do not need a market place for a registered office address. You just need: 1. Rent agreement along with the latest rent receipt (if the place is rented). 2. NOC from the Owner. 3. House tax receipts (if the premises are owned) 4. Electricity bill.

• A Nidhi Company is prohibited to engage in “chit funds, insurance, leasing finance, or acquisition of securities” issued by any Body Corporate. • A Nidhi Company cannot issue preference shares, debentures, or any other such instrument. • It cannot accept deposits nor lend money to anyone, other than it’s members. • These companies cannot pay any incentive for mobilizing deposits.

DIN or "Director Identification Number" is given to an existing Director or potential Director of any Company which is incorporated or is to be incorporated. It is a Unique Identification Number, issued by the MCA.

DSC or Digital Signature Certificate means signing the documents electronically/digitally by an authorized person. It is used for signing the electronic company-related forms and statements. It cannot be used in physical documents.

NOF or Net Owned Fund = Paid-up share capital + Free Reserves – Accumulated losses, deferred revenue Expenditure, and other intangible assets.

1. It cannot accept deposits over 20 times of it’s NOF. 2. The time duration for “Fixed Deposits” is a minimum of 6 months to a maximum of 60 months. 3. For Recurring Deposits, it is a minimum of 12 months to a maximum of 60 months. 4. A Nidhi Company can invest and keep investing, in an unencumbered term deposit with a scheduled commercial bank (other than a co-operative bank or a regional rural bank), or in post office deposits, in it’s own name, and the amount must not be less than 10% of the deposits outstanding at the close of business on the last working day of the second preceding month. In some emergency, the limit of 10% can be reduced only after seeking approval from the Regional Director.

A Nidhi company is registered as a Public Limited Company. Hence, the requirements for incorporation of a Nidhi company covers a minimum of three Directors and Seven Shareholders. However, the MOA of a Nidhi company must state that the primary objective of the proposed company is to nurture and promote a habit of thriftiness and savings among it’s members, and accept deposits from or lend loans only to it’s members, for their mutual benefits.

Yes, because the Government of India/Ministry of Corporate Affairs/RBI has framed the laws to ensure the security and safety of deposits, and Nidhi companies must strictly abide by the rules and regulations framed by the Central Government.

The Company uses the funds in lending to the Shareholder/members only as per the Nidhi company rules. Nidhi Company lends is in the shape of small loans for business and microfinance.

Only shareholders/Members of the Nidhi Company, who have a membership ID, can invest in the scheme. To be a member, you must be 18-years or above and must be a citizen of India.

A Nidhi Company can open 3 branches in it’s district, only if it has earned profits after tax consistently during the preceding three financial years. For any additional branch, it will first have to apply for approval from the Regional Director.

LegalRaasta provides Nidhi Company incorporation services across India in all cities. We have done Nidhi company registration in “Mumbai, Delhi, Gurgaon, Noida, Bangalore, Chennai, Hyderabad, Ahmedabad, Kolkata, Surat, Pune, Jaipur, Lucknow, Kanpur, Nagpur, and other Indian cities.”

“LegalRaasta.com” is one of the best online service portals which helps in the registration of Nidhi Companies in India. We have 10 years of experience in the application of Nidhi Company registration. LegalRaasta has 30+ regional offices in India and has expanded it’s network in India with 2000+ customers.

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