Nidhi Company Registration2018-12-01T08:32:50+00:00

Nidhi Company Registration

Ideal for lending and borrowing amongst members

Starting At Rs. 68,600 Onwards

SAVE 60% COST…!!!

(Takes 30-40 days)

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Nidhi Company Registration

What is a Nidhi Company ?

Nidhi Company Registration – 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.

A Nidhi company incorporated under this act is a public company. It takes around 15 to 20 days to get a Nidhi Company registered in India.

Why Choose Nidhi Company?

  • Since it is a member’s only company no outside involvement
  • Limited RBI regulations applicable
  • Low Capital Requirement
  • Easy to operate as compared to NBFCs
  • Loans at lower rates of interest to members
  • Tax benefits
  • No Stamp Duty
  • Easy Transfer of Ownership

Why choose us?

When you choose us as your service provider we promise undivided attention to you. Our team of experts ensures that your work is carried out with accuracy and detail. Our CRM system is designed in a way to provide tracking to each client about their work status and hence ensures quick completion of tasks. Our experienced support staff will help you at every stage of your work and advise you wherever needed.

Shahar Urban Finserve And Multipurpose Nidhi Limited and Arthdeep Urban Multipurpose Nidhi Limited are some of our successful clients registered as Nidhi Company. We provide Nidhi Company Registration all over India.

Requirements of Nidhi Company

Steps for Nidhi Company Registration

1. Application of DSC and DPIN

All the partners have to apply for DPIN and digital signature for Nidhi Company. DPIN or Director’s PIN Number is issued by MCA. If all the directors already have their DPIN and DSC, they can skip this step.

2. Name Approval

You have to submit 3 option for the name of your Nidhi Company to the MCA out of which one will be selected. Names provided should be completely unique.

3. MOA and AOA Submission

After the name approval, one needs to submit the MOA and AOA. Both MOA and AOA are filed with the MCA with the subscription statement.

4. Get Incorporation Certificate

Once your application is filed you will receive an ARN number. The Incorporation certificate is received within 15-20 days .It is a proof that company has been creation also includes your CIN (Company Identification number).

5. Apply For PAN, TAN and Bank Account

After this PAN and TAN needs to be applied for. They are issued within 7-10 working days by tax authorities. Post this, you can submit the Incorporation certificate, MOA, AOA and PAN with bank to open your bank account.

Factors to Consider 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”

Requirements after Incorporation

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

  • Minimum number of Shareholders should be 200
  • Net owned Fund shall not be less than Rs. 10 Lacs
  • Unencumbered deposits of not less than 10% of the outstanding deposits
  • Net owned funds to deposits ratio should be more than 1:20

Documents Required For Nidhi Company Registration

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)

Procedure for Nidhi Company Registration

What is included in Our Nidhi Company Registration Package

Frequently Asked Questions

1. What do we require to register for a Nidhi Company?
A Nidhi Company is registered as a Public Limited company. It requires a minimum of 3 directors and 7 shareholders. 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 its members, and accept deposits from or lend loans only to its members, for the mutual benefits of them.

2. Are our deposits safe and secured?
Yes, The Govt. of India/ RBI has made some laws to ensure the safety of the deposits and the Nidhi companies have to abide by the rules and regulations.

3. How does the Nidhi Company use the fund/deposit procured by it?
The company uses the deposits to lend them to the shareholders/members only as per Nidhi Company Rules. Nidhi company lends in the form of small loans.

4. Who Can Invest in a Nidhi Company?
Only members of the Nidhi Company having the membership ID can invest. And to be a member you must be an Indian National of age above 21.

5. How can I become a Shareholder/Member of the Nidhi Company?

1. Business Restrictions:

Nidhi Companies are strictly prohibited from engaging in the following types of businesses:
The business of chit fund, hire purchase finance, leasing finance, insurance or acquisition of securities issued by any body corporate. Nidhi Companies cannot carry on any business other than the business of borrowing or lending in its own name.

2. General Restrictions:

Nidhi Companies cannot issue any shares, debentures or any other securities by any name or in any form whatsoever.

Nidhi Companies cannot open a current account with its members. Please note, there is a restriction on current account that means you can still open a savings account with the members.
Nidhi Companies cannot issue or cause to be issued any advertisement in any form for soliciting deposit.

6. How many branches can a Nidhi Company open?
A Nidhi Company can open 3 branches in the same district if it has earned profits after tax consistently during the preceding three financial years. If they want to open a new branch, they have to reapply for approval from the Regional Director.

7. In which cities does LegalRaasta incorporate Nidhi Company?
Legalraasta provides registration services in all the cities in India.