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Nidhi Company

Nidhi Company

  • Overview
  • Document Required / Details of the product
  • Process

Nidhi Company Registration in India

Nidhi Company is a business entity in India governed under the Companies Act 2013. Its sole objective is to engage with thrift and savings among its members. A Nidhi Company is a Non-Banking Financial Institute that provides services like Lending and deposits to its members exclusively. Therefore, it can be said a Nidhi Company in India only consists of funding from its members and shareholders. Starting a Nidhi Company in India means starting a class of Non-Banking Financial Companies. They are governed under the Reserve Bank of India. This body tells the registered Nidhi Company guidelines about lending and depositing activities. However, Nidhi Companies can only deal with their own members. Therefore outside members are not allowed. Why you should register a Nidhi Company? Nidhi Company is one of the business entities that enjoy several perks of the Companies. The following are those perks that make Nidhi Company Registration quite a beneficial affair:
  1. Easy Access to loans: As a Nidhi Company is a recognized infrastructure by the Central government; it is trusted more by the banks. Therefore, once you register a Nidhi Company, it is easy for you to acquire loans and other types of findings.
  2. Continued Existence: A Nidhi Company enjoys a continued existence even after one of the directors is deceased.
  3. Easy to incorporate: The Incorporation of a Nidhi Company is quite easy. It is following the standard procedure of Company Registration in India.
  4. Separate legal Identity: After the formation of a Nidhi Company, it becomes a separate legal identity in India. It can be said that a Nidhi Company becomes a separate individual who shall be able to own a property, invest, etc.
  5. Limited Liability: A Nidhi Company enjoys limited liability for its members. This means that in the event of loss, the members of the Nidhi Company won’t have their personal assets harmed.
Through Nidhi Company Incorporation, you can basically start your own mutual fund business. If it is what you want to do, contact Taxcomate and let us handle Nidhi Company Registration. What is included in our Nidhi Company Registration Package
  1. DIN for 3 Directors
  2. Digital Signature For 3 Directors
  3. Name search & approval
  4. MOA/AOA
  5. Registration Fees
  6. Company Pan Card
  Minimum Requirements for Incorporation

Before Incorporation

  1. Minimum 7 shareholders
  2. Minimum 3 Directors
  3. Minimum Capital of Rs. 10 lacs
  4. DIN for all directors

After Incorporation

  1. Minimum number of 200 Shareholders
  2. Net owned Fund shall not be less than Rs. 10 Lacs
  3. Unencumbered deposits of not less than 10% of the outstanding deposits
  4. Net owned funds to deposits ratio should be more than 1:20
  Concerns Related to Nidhi Company Highly dependent on the integrity, honesty and loyalty of workers and members. Lacklustre sales promotion. It caters to only the needs of small and medium-income groups.     Nidhi Companies are usually managed by amateurs and professional managers cannot be hired due to lack of funds. People may be afraid to deposit funds because Nidhi Companies don’t require a licence from the RBI.   Advantages of Nidhi Company Registration
  1. No Minimum Share Capital Requirement
  2. Easy Transfer of Ownership
  3. Tax Benefits
  4. No need to use “Nidhi” or “Limited” title
  5. No Stamp Duty
  6. Clear Objectives for easy donations and loans
  7. Easy to Manage
  8. Exemptions and Privileges under Companies Act, 2013
  9. Relaxation in Compliances
 

Frequently Asked Questions

You need to appoint a minimum of three directors and have seven shareholders. So, a total of 10 individuals are needed to form a Nidhi. You need to register the company as a limited company under Companies Act, 2013. Nidhi Companies take almost a month or even longer to register.

Yes, you can expand operations.A minimum of three branches can be opened in a particular district. In case you want to expand outside the district or want to open more than three branches, intimation needs to be issued 30 days prior to opening to the Registrar of Companies

The conditions laid down by the Act says that a Nidhi company should acquire a minimum of 200 members within one year. However, in case you have not been able to acquire the required numbers, you can apply for an extension with the authorities

No, only the members are allowed to deposit, borrow or lend funds.

Any person can deposit, lend or borrow money through the provisions provided by Companies Act, 2013. They can all become members of the Nidhi provided they are not a corporation or a company.

A Nidhi can accept deposits not exceeding 20 times of its net owned assets as mentioned in the last audited statements.

Documents Required for Nidhi Company Registration:

For All Companies/LLP

For Directors/Shareholders

  1. Copy of PAN Card
  2. Identity Proof (Voter Card, Passport, Driving Licence)
  3. Address Proof (Bank Statement, Mobile bill, Telephone bill, Electricity Bill)
  4. Passport Size Photo

For Registered Office

  1. Ownership Proof (Electricity Bill, Gas bill, Electricity Bill, Mobile Bill)
  2. NOC (Download Format)

For Partnership Registration

For Unregistered Partnership Firm

A Partnership deed is formed on a suitable non-judicial stamp paper duly signed by each member of the firm. The same is required to be notarized by the notary and from that date Partnership Firm deemed to be registered.

For Registered Partnership Firm

  1. Application for Registration in the prescribed Form – I.
  2. Duly filled Specimen of Affidavit.
  3. Certified copy of the Partnership deed on appropriate non-judicial stamp paper.
  4. Proof of ownership of the place of business or the rental/lease agreement thereof.
  5. Affix court fee stamp & payment of prescribed fee for registration by demand draft.

*Few Documents can vary when you are going to register as a company in India.

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Nidhi Company Registration

₹31,899.00

Nidhi Company in just 7 to 10 Days

Never let the businessman see down by giving your small business a shining name with Nidhi Company registration. It is extremely easy to start and run!

Why choose Company registration in INDIA ?

  • Shields from personal liability and protects from other risks and losses.

  • A registered company makes it genuine and increases the authenticity of your business.

  • Procures bank credits and good investment from reliable investors with ease.

  • Offers liability protection to protect your company’s assets

  • Greater capital contribution leading to greater stability of business

  • Increases the potential to grow big and expand the business