Nidhi Company Registration
Register your Nidhi company with us within 10 working days. Company Names and Professionals Support RBI Approval in Law
What is Nidhi Company?
Nidhi Company is a non-banking company regulated under Section 406 of the Indian Companies Act, 2013 and accepts deposits and loans from its members only for mutual assistance. A Not-for-Profit Banking Company (NBFC) is regulated under the Nidhi Act, 2014 and is recognized under Section 406 of the Companies Act, 2013. Financial assistance. Unlike other financial institutions that are not financial institutions, Nidhi companies have business restrictions that do not allow them to borrow money from their members. They cannot accept deposits from the public or engage in any other financial activities. Although Nidhi companies are exempt from RBI registration, they have to comply with specific requirements set by the Ministry of Corporate Affairs (MCA) of India.
Benefits of a Nidhi Company Registration
1. Limited Liability
- Protection for Members: Members’ liability is limited to their shares in the company, protecting personal assets from the company’s debts.
2. Easy Access to Funding
- Member Contributions: Nidhi Companies can easily raise funds through member contributions and savings, making it easier to provide loans to members.
3. Lower Regulatory Compliance
- Less Burden: Compared to other financial institutions, Nidhi Companies face relatively fewer regulatory requirements, simplifying operations.
4. Interest on Savings
- Attractive Returns: Members can earn interest on their deposits, making it an appealing savings option.
5. Support for Members
- Community Focus: Nidhi Companies promote savings and provide financial support to their members, fostering a sense of community.
6. No External Borrowing
- Self-Sustaining: Nidhi Companies primarily rely on the funds from their members, reducing dependence on external borrowing.
7. Tax Benefits
- Tax Exemptions: Nidhi Companies may enjoy certain tax benefits under specific conditions, depending on their financial operations.
8. Flexibility in Operations
- Customized Services: Nidhi Companies can tailor their financial products and services according to the needs of their members.
Nidhi Company Incorporation Requirements
1. Minimum Requirements
- Minimum Members: At least 7 members are required to form a Nidhi Company.
- Minimum Directors: A minimum of 3 directors is necessary, and all directors must be individuals.
2. Name of the Company
- Unique Name: The name must be unique and not similar to any existing company or trademark. It should include “Nidhi Limited” as part of its name.
3. Digital Signature Certificate (DSC)
- Required for Directors: Obtain a DSC for all proposed directors, as it is needed for signing electronic documents during the registration process.
4. Director Identification Number (DIN)
- Mandatory: Each director must apply for and obtain a DIN, which is a unique identification number for directors.
5. Memorandum and Articles of Association (MOA & AOA)
- Drafting Required: Prepare the MOA and AOA, which outline the objectives and internal rules of the company. The AOA should specify the activities of the Nidhi Company.
6. Registered Office Address
- Proof Required: A registered office is mandatory, and you must provide proof of the address (like a utility bill or lease agreement) along with the consent of the owner if the office is rented.
7. Minimum Capital Requirement
- Initial Capital: While there is no fixed minimum capital requirement, it is advisable to have at least ₹5 lakhs as the initial capital to ensure financial stability.
Nidhi Company Registration Procedure
Step 1: Obtain Digital Signature Certificate (DSC)
- Who: All proposed directors.
- How: Apply through authorized agencies.
- Purpose: Required for signing electronic documents during the registration process.
Step 2: Apply for Director Identification Number (DIN)
- Who: All proposed directors.
- How: Apply using Form DIR-3 on the Ministry of Corporate Affairs (MCA) portal.
- Documents Needed: Identity proof and address proof.
Step 3: Choose a Unique Name for the Company
- Name Guidelines: The name should be unique and include “Nidhi Limited” at the end.
- Name Approval: Check name availability using the MCA portal and apply for name reservation through Form INC-1.
Step 4: Draft the Memorandum and Articles of Association (MOA & AOA)
- MOA: Define the objectives and scope of operations.
- AOA: Outline the rules and regulations for internal management.
- Content: Ensure the AOA specifies activities that align with the Nidhi Company structure.
Step 5: Prepare Required Documents
- Documentation: Compile the following documents:
- Identity and address proof of all directors and members.
- Proof of registered office address (utility bill or lease agreement).
- Declaration by directors stating the company will be a Nidhi Company.
Step 6: Fill and File the Incorporation Forms
- Forms: Use Form SPICe (Simplified Proforma for Incorporating Company Electronically) along with Form INC-22.
- Submission: File these forms on the MCA portal.
- Fee Payment: Pay the requisite registration fee, which varies based on the authorized capital.
Nidhi Company Registration Fees in India
Nidhi company registration in India is easy. We are a registrar that can help you. Fill the required documents and pay for the affordable e-Nidhi company registration online. Once registered, you will receive a Membership Certificate as proof of your business registration. There are also Nidhi registration fees and annual maintenance fees depending on state regulations. To know more about Nidhi Company Registration Fees, talk to our experts today.
Nidhi Company in India vs RBI Recruitment
The Reserve Bank of India (RBI) and the Nidhi Companies Act 2014 have various responsibilities and regulations. The Reserve Bank of India, as the central bank of India, regulates the financial system. Nidhi Enterprises, on the other hand, are non-banking financial institutions (NBFIs) that cater to the needs of their members. Right. They must have a net worth (NOF) of at least Rs 10 million and must allocate at least 10% of their capital to non-fixed deposits in scheduled banks. Nidhi companies also need to follow a set of rules and regulations mandated by the Reserve Bank of India. To be compliant and avoid penalties, it is recommended to register a Nidhi company as per the Reserve Bank of India guidelines.
Nidhi (Amendment) Rules, 2023
The Ministry of Commerce (MCA) has published the Nidhi (Amendment) Act, 2023 on January 20, 2023. The New Instructions to the Act, Forms NDH-1, NDH-2, NDH-3 and Form NDH-4 have been revised. The Supplement to the Nidhi (Amendment) Rules, 2023 contains the updated version of this text.
Nidhi Company Registration Online FAQs
A Nidhi Company is a type of non-banking financial company (NBFC) that primarily focuses on borrowing and lending money among its members. It is governed by the Companies Act, 2013, and the Nidhi Rules, 2014.
- Limited liability for members.
- Easy access to funding through member contributions.
- Lower regulatory compliance compared to other financial institutions.
- Ability to promote savings among members.
- Minimum of 7 members and 3 directors.
- At least one director must be a resident of India.
- The company must include "Nidhi Limited" in its name.
You can apply for a DSC through authorized certifying agencies. You’ll need to provide identity proof and address proof, and the process usually requires a few days for processing.
Yes, all proposed directors must obtain a DIN, which is mandatory for filing various incorporation forms.
Key documents include:
- Identity and address proof of all directors and members.
- Digital Signature Certificates (DSC) for all directors.
- Memorandum and Articles of Association (MOA & AOA).
- Proof of registered office address.
- A declaration by the directors.
You can file the forms through the Ministry of Corporate Affairs (MCA) portal by registering as a user. Fill out the necessary forms (such as SPICe and INC-22), upload required documents, and pay the registration fee.
The registration fee varies based on the authorized capital of the company. You can check the fee structure on the MCA website.
The online registration process typically takes around 10-15 working days, depending on the completeness of your application and the workload at the Registrar of Companies (ROC).
Once submitted, the ROC will review your application. If approved, you will receive a Certificate of Incorporation, which signifies that your Nidhi Company is legally registered.
Yes, you can change the name by following the prescribed procedure, which involves passing a special resolution and obtaining approval from the ROC.
Post-registration, a Nidhi Company must file annual returns, maintain proper accounting records, and comply with any guidelines set by the Reserve Bank of India (RBI).