Nidhi Company Registration @ Rs 14999 2018-05-23T17:33:09+00:00

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What is Nidhi Company Registration?

A Nidhi company belongs to the category of non-banking finance firms.Recognized under Section 406 of the Companies Act, 2013, it is governed by the central government. The basic business of such a company is to facilitate lending money between the core members of the company.
Examples of a Nidhi Company are permanent funds, mutual benefit funds, a mutual benefit company and benefit funds.The core idea behind creating a Nidhi Company is to receive funds (deposits) from members or lend to them, for the mutual benefit of both parties. All lending and borrowing must comply with rules laid down in Chapter XXIV of Company Rules, 2014.

Since Nidhi’s come under one class of NBFCs, RBI is empowered to issue directions to them in matters relating to their deposit acceptance activities. However, in recognition of the fact that these Nidhi’s deal with their shareholder-members only, RBI has exempted the notified Nidhi’s from the core provisions of the RBI Act and other directions applicable to NBFCs. As on date (February 2013) RBI does not have any specified regulatory framework for Nidhi’s.
At Registration Arena, we are continuously available to help you understand how to register a Nidhi company. Nidhi Company Registration in India can be done through Registration Arena in all major cities including Hyderabad, Mumbai, and New Delhi, Chennai, Kolkata & all other Indian cities.It takes 7-12 working days on an average to complete online company registration, subject to the government processing time and the client document submission.

Basis of a Nidhi Company

nidhi company registration

Regulated by MCA & RBI

The financial dealings and all the registration processes of a Nidhi company are regulated by the Ministry of Corporate Affairs. The deposit acceptance activities conducted by the Nidhi Company also come under the scanner of Reserve Bank of India and the latter has the rights to look into the financial dealings. Nidhi companies are only allowed deposits which are over six months and less than five years old.

Number of Members

A Nidhi Company must accumulate 200 members within a year of its formation.If it fails to do so, it needs to apply for permission to extend the time limit to acquire more members. Three of its members will be appointed as directors and there must be seven stockholders on inception.

Equity Capital

A Nidhi Company must have an equity share capital of Rs. 5 lakh on inception. This entire amount must be paid-up. Moreover, 10% of the total deposit collected from members must be in a fixed deposit in a nationalised bank.

Advantages Of Nidhi Company Registration

  • Cheaper to Borrow
    As a member, one can borrow money at a minimum rate, relative to the rate at which banks lend money.This can be a major advantage in times of need, as different individuals in the mutual benefit society are likely to need funds at different points in time.
  • Encourages Savings
    A Nidhi company encourages all its members to save money and encourages a thrifty lifestyle. A Nidhi company, after all, is amutual benefit society wherein memberscan lend or borrow money and accept financial aid amongst them.
  • Fewer Complications
    Borrowing and lending to known persons, where the procedure is fixed, is much less complicated than dealing with banks or in an informal setting. A Nidhi Company enables its members to unlock the potential of their money and gain from lower interest rates when they require money themselves.
  • Minimum Documentation
    In case of loan to be taken from Nidhi Company,documents required are minimum as compared to other Financial Institutions.

Minimum Requirements For Nidhi Company Registration

Minimum 7 Shareholders
Minimum 3 Directors are required
DSC for all Shareholders
Minimum 5,00,000 Rupees Share Capital
DPIN for all the Directors

Procedure For Nidhi Company Registration

Documents Required For Company Registration

Identity and Address Proof:
Identity and the address proof will be needed for all the directors and the shareholders of the company to be incorporated. In case of an Indian national, PAN card is mandatory. For the foreign nationals, apostilled or notarised copy of the passport has to be submitted mandatorily. All documents submitted should be valid. The residence proof documents like the bank statement or the electricity bill must be less than 2 months old.

Registered Office Proof:
All companies should have a registered office in India. To prove admittance to the registered office, a recent copy of electricity bill or gas bill or water bill or telephone bill must be submitted. Along with the rental agreement, utility bill or the sale deed and a letter from the landlord with her/ his consent to use the office as a registered office of the company should be submitted.

List of documents to be submitted by the Director and the Shareholders:
Scanned copy of PAN Card or Passport (Foreign Nationals & NRIs)
Scanned copy of Voter’s ID/Passport/Driver’s License
Scanned copy of Latest Bank Statement/Telephone or Mobile Bill/Electricity or Gas Bill
Scanned passport-sized photograph
Specimen signature (blank document with signature [directors only])
Note: Any one of the directors must self-attest the first three documents. In case of foreign nationals and NRIs, all the documents must be notarised (if currently in India or a non-Commonwealth country) or apostilled (if in a Commonwealth country).

For the Registered Office:
Scanned copy of Latest Telephone or Electricity or Gas Bill or Water bill
Scanned copy of Notarized Rental Agreement in English
Scanned copy of No-objection Certificate from property owner
Scanned copy of Sale Deed/Property Deed in English (in case of owned property)
Note: Your registered office need not be a commercial space; it can be your residence, too.

What are factors one should consider in selecting the company name

The name of the company is very important. It is considered the first impression for the suppliers, buyers and the stakeholders. It must, therefore, be suggestive, relevant and attractive. There are various factors that one must keep in mind while naming the company.

It must be short & simple:
The name must be concise and not be too long. People should be able to say it easily and they should be able to recollect your company’s name the first time they read it or hear it.

It must be meaningful:
The name of the company should be related to the business. It must fit the company’s branding.

It must be unique:
The name of the company mustn’t be the same or identical to an already existing company or a trademark. One must preferably avoid the plural version.

Add Suffix:
The name of the company must end with the suffix “Nidhi Ltd” in a case of a Nidhi company

It shouldn’t be illegal / offensive:
The name of the company shouldn’t be against the law. It shouldn’t be abusive or against customs and the beliefs of any religion.

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Compare Your Options

Basic

14999*
  • Nidhi Company Registration

Standard

29998*
  • Nidhi Company Registration
  • Upto 200 Share Certificates
  • Share Allotment upto 200 share holders

Deluxe

29998*
  • Nidhi Company Registration
  • Company ROC Filing
  • NDH -1 ,NDH -2, NDH -3

Popular

As Per Turnover *
  • Nidhi Company Registration
  • Company Annual Compliance
  • NDH -1 ,NDH -2, NDH -3

Ultimate

21497*
  • Nidhi Company Registration
  • Trademark
  • ISO Certification

*Consultancy fees
(government fees will be on actual)

FAQ

No, new company registration is a fully online process. As all documents are filed electronically, you would not need to be physically present at all. You would need to send us scanned copies of all the required documents & forms.

If you have all the documents in order, it will take no longer than 7-12 days. However, this is dependent on the workload of the registrar.

A Nidhi company is registered as a Public Limited Company. Hence, the requirements for incorporation of a Nidhi company covered 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 its members, and accept deposits from or lend loans only to its members, for the mutual benefits of them.

Yes, because Government of India/Ministry of Corporate Affairs/RBI has framed the laws/rules 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 lending is in the shape of small loans for business and microfinance.

Yes, a private limited company must hire an auditor, no matter what its revenues. In fact, an auditor must be appointed within 30 days of incorporation. Compliance is important with a private limited company, given that penalties for non-compliance can run into lakhs or rupees and even lead to the blacklisting of directors.

These documents contain the rules, vision and mission of your organisation, and define, among other things, the exact business and the roles and responsibilities of shareholders and directors

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 and above as per age proof and must be a citizen of India
A Nidhi Company can open 3 branches in its district only if it has earned profits after tax consistently during the preceding three financial years. For any additional branch, Nidhi will be first apply for approval from the Regional Director.

Registration Arena provides Nidhi Company registration 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.

It typically takes 7 to 12 working days to register a Nidhi Company.

Yes, the company registration process is online. You can send the required documents via email to registrationarena.com.
Yes, another company can be a shareholder in a Nidhi company.

Yes, a salaried person can become a director in a Nidhi company. There are no legal hassles in this but one may have to go through their employment agreement if it contains any restrictions.

Once a company gets incorporated, it is active and in-existence for as long as the annual compliances are met with regularly. In a scenario where the annual compliances are not complied with, the company becomes a dormant company and then it may be struck off from the registrar after a period of time. A struck-off company can be revived for a period of up to 20 years.
No, one can open a company even at their residential address. There is no legal requirement to have a commercial place to open up a company.
No, as per the constraints mentioned in the Nidhi rules and regulations, no Nidhi company can do the business of asset financing.

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Rajendra Chaudhari • Senior Partner • Forgewell Industries

“It was wonderful experience with Registration Arena during my company registration.Queries were addressed instantly through mails, phone calls; and the follow-up was just fantastic.Within a week of time my private limited was registered.There was no requirement of follow up at all.Also got instant help for opening bank account.Great work team Registrationarena ,would be more than happy to be associated with you guys in future.”

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I would definitely recommend your services to everyone looking for ISO Certification.
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Why Registration Arena

On Time Delivery

Just tell us a few details about your brand and we’ll process your application. In three working days, you’ll be ready to use the symbol alongside your brand name.

Transparent Pricing

We make your interaction with government as smooth as is possible by doing all the paperwork for you. We will also give you absolute clarity on the process to set realistic expectations.

Tech Driven Platform

Our team of experienced business advisors are a phone call away, should you have any queries about the process. But we’ll try to ensure that your doubts are cleared before they even arise.

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