Nidhi Company Registration

Q. What is Nidhi company?

Ans- “Nidhi company” means a company that has been incorporated as a Nidhi with the object of cultivating the habit of thrift and savings amongst its members, receiving deposits from, and lending to, its members only, for their mutual benefit. For Nidhi company Registration, this object must be complied with.

Nidhi company shall be a public company. The Nidhi company shall have only one object in its memorandum which is to cultivate the habit of thrift and savings amongst its members, receiving deposits from, and lending to, its members only, for their mutual benefit.

Every company incorporated as a “Nidhi” shall have the last word ‘Nidhi Limited’ as part of its name. No Nidhi shall issue preference shares. If preference shares had been issued by a Nidhi before the commencement of this Act, such preference shares shall be redeemed by the terms of the issue of such shares.

Q. What is the eligibility for Nidhi company registration in India?

Ans- The following are the eligibility for Nidhi company registration in India-

Before Incorporation

• Minimum Person Requirement- A minimum of seven people are required to start the Nidhi company in India. These companies shall have a minimum of three directors. The same seven people can become shareholders and directors of the company.
• Minimum Capital Requirement- Nidhi shall be a public company and shall not require a minimum paid-up equity share capital at the time of registration as per Central Government Notification. However, it should have Net Owned Funds of ten lakh rupees or more.
• Unique Name- The name of the Nidhi company should be unique and should not be similar to any existing company name or trademark.

After Incorporation

• Members- Not less than two hundred members
• Owned Funds- Net Owned Funds of ten lakh rupees or more
• Term Deposits- Unencumbered term deposits of not less than ten percent. of the outstanding deposits as specified in Rule 14
• Owned Funds to Deposits Ration- Ratio of Net Owned Funds to deposits of not more than 1:20.

Q. What are the documents required for Nidhi company Registration in India?

Ans- The following are the documents required for Nidhi company registration in India-

Identity Proof (Directors and Shareholders)

• PAN cards for Indian nationals (mandatory)
• Passport for foreign nationals (mandatory)
• Proof of nationality for foreign nationals.
• Proof of Identity: (Voter ID/ Passport/Driving License) (any one)
• Resolution of the Board of company /LLP for authorisation  of director/partner
• Passport size photos

Address Proof (Directors and Shareholders)

• Bank Statement,  Electricity /Telephone/Mobile bill) (Not older than 2 months) (anyone)  

Proof of Registered Office

• Conveyance /Lease deed / Rent agreement etc. along with rent receipts (anyone)
• Copy of utility bills (Telephone/Gas/Electricity bill) (not older than 2 months) (anyone)
• NOC from landlord

Other Documents

DSC forms (physically signed)

Note-

All the documents in case of foreign director should be additionally complied as follows:

• Notarised (if residing in commonwealth countries).
•  Notarised and apostilled (if residing in a country that is a signatory to the Hague Convention.)
• Notarised and consular (if not covered in the above categories).

Q. What are the procedure for Nidhi company Registration in India?

Ans-The following is the procedure for Nidhi company registration in India-

• Step 1: Reservation of name of company
• Step 2: Take the DSC of directors and shareholders
• Step 3: Approval of other regulators (if required)
• Step 4: Get the certificate of registration, PAN, and TAN
• Step 5: Open the Bank Account of the company

Q. What are the benefits of Nidhi company registration in India?

Ans- The following are the benefits of Nidhi company registration in India-

• Limited RBI Regulations- There is limited RBI regulatory imposition on Nidhi company. These companies follow the Nidhi Rules, 2014 of the Companies Act, 2013.
• Limited Capital Requirement- The Ministry of Corporate Affairs has done away with the minimum capital requirement of INR 5 Lakhs for Nidhis. However, as per Nidhi Rules, 2014, the net owned fund of Nidhi company should be INR 10 lakhs.
• No license from RBI- Nidhi is not required to obtain a license from RBI like NBFC. Nidhi has to incorporate themselves as a public company, infuse the required amount of capital as per Nidhi Rules, 2014 and they start.
• Small Savings Channelisation– The small sections of the population contribute to the funds of and avail credit from Nidhi companies.
• Lower Rate of Credit– The loans given to the members are at a lower rate of interest than the market rate.

Q. Who can become a member of Nidhi company in India?

Ans- A Nidhi shall not admit a body corporate or trust as a member. Every Nidhi shall ensure that its membership is not reduced to less than 200  members at any time. A minor shall not be admitted as a member of Nidhi, however, deposits may be accepted in the name of a minor, if they are made by the natural or legal guardian who is a member of Nidhi.

Yes, you can get a discount on the product/service as per the company policy.

Max up to 20%, as allowed from time to time on this product/service.