Nidhi Company Registration
A Nidhi company is a kind of mini bank. It can open Savings, Fixed Deposit & Recurring Deposits account like a bank and provide loan to its members. It is governed by Central Government Regulations and does not need RBI approval.
19,999 24,999
Inclusive of Govt. Fees & Taxes
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An Overview of Nidhi Company Registration
A Nidhi Company is an entity established in accordance with the Companies Act of 2013 and is overseen by the Ministry of Corporate Affairs (MCA) along with the Nidhi Rules of 2014. To qualify as a Nidhi Company, it must fulfill specific criteria, including a minimum membership of 200 individuals and a net-owned fund of at least INR 20 lakhs within 120 days following its incorporation.
These companies promote the principles of thrift and savings among their members by restricting their capacity to accept deposits and extend loans. The effective functioning of Nidhi Companies is contingent upon compliance with Reserve Bank of India (RBI) regulations and the fulfillment of annual reporting obligations.
Benefits of a Nidhi Company
1. Formation
The Nidhi Company Registration process is very easy and quick, making it feasible for those who look forward to forming such entities.
2. RBI Non-Compliance
RBI governs all banks, but its guidelines do not bind Nidhi companies in a similar sector. It requires these entities to establish their own rules and regulations and run their businesses accordingly.
3. Lesser Risk
All the operations related to borrowing, lending, or even depositing are done by the members of the entity, thereby reducing the risk of losses and ensuring the entity’s safety.
4. Promoting Savings
These Nidhi Companies ensure that the individuals involved with the entity are following the concept of saving for future use and better financial conditions.
5. Registration Procedure
The Nidhi Company Registration process is cost-effective and smooth compared to other Non-Banking Financial Company registrations. It makes it easier for these companies to access financing options and business loans.
6. Funding System
The net-owned funding system is typically adopted by the Nidhi companies, which makes it cost-effective. It positively impacts their business by using their funds and resources.
The registration of a Nidhi Company offers numerous advantages for both the management and shareholders, ensuring that customers also receive value from the organization. The benefits include the following –
Documents Required for Nidhi Company Registration
- Photographs of Promoters and all the members
- PAN card of promoters and all the members
- Identity Proof of promoters and all the members (Aadhar Card, D/L, Voter ID, Passport)
- Address Proof of promoters and all the members (through Utility bills or bank statements)
- Address proof of the business premises (through utility bills)
- NOC from the premises owner, if applicable
- Property Documents or Rent agreement, if applicable
- Form DIR – 2 with the consent of directors
- DSC & DIN of Directors
- Director specimen signatures
- Subscriber sheet duly signed
- Company Registration Questionnaire
Process for Nidhi Company Registration
1. Application for DSC & DIN
The first step for a Nidhi Company Registration is for the directors to acquire the Digital Signature Certificate and apply for the Director’s Identification Number issued by the Ministry of Corporate Affairs. Directors who already have the DIN can skip the process. The DSC is essential for all e-filling processes.
2. Memorandum of Association & Articles of Association
Drafting of Memorandum of Association & Articles of Association is essential for establishing the purpose of the Nidhi Company. These are necessary things in an organization and should be filed with the registrar of the companies.
3. Name Approval
The Nidhi company seeking registration needs to obtain approval over the entity’s name through the Ministry of Corporate Affairs. The chosen name must be unique and should not be copied from the name of any other company or trademark. The objective and business nature should be reflected through the name selected for such entities. They need to propose at least three names out of which MCA chooses the appropriate one. The application for approval is sent through PART A of the SPICe+ application form.
4. Incorporation Application
After the name is approved by the MCA, the company can begin the process of incorporation. For incorporation, you must go to the MCA official website and fill out the SPICe+ application form. After filling out the application form online, divided into two parts, PART A & PART B, any one director has to sign it. The signed application form must be submitted online along with the other required documents attached to it.
5. Certificate of Incorporation
6.Nidhi Company License
Legalixo Support in transitioning a Nidhi Company Registration
- Purchase a Plan for Expert Assistance
- Add Queries Regarding the conversion
- Provide Documents to Legalixo Expert
- Complete all other required Actions
- Get your work done!
Benefits of a Nidhi Company
1. Formation
The Nidhi Company Registration process is very easy and quick, making it feasible for those who look forward to forming such entities.
2. RBI Non-Compliance
RBI governs all banks, but its guidelines do not bind Nidhi companies in a similar sector. It requires these entities to establish their own rules and regulations and run their businesses accordingly.
3. Lesser Risk
All the operations related to borrowing, lending, or even depositing are done by the members of the entity, thereby reducing the risk of losses and ensuring the entity’s safety.
4. Promoting Savings
These Nidhi Companies ensure that the individuals involved with the entity are following the concept of saving for future use and better financial conditions.
5. Registration Procedure
The Nidhi Company Registration process is cost-effective and smooth compared to other Non-Banking Financial Company registrations. It makes it easier for these companies to access financing options and business loans.
6. Funding System
The net-owned funding system is typically adopted by the Nidhi companies, which makes it cost-effective. It positively impacts their business by using their funds and resources.
The registration of a Nidhi Company offers numerous advantages for both the management and shareholders, ensuring that customers also receive value from the organization. The benefits include the following –
Documents Required for Nidhi Company Registration
- Photographs of Promoters and all the members
- PAN card of promoters and all the members
- Identity Proof of promoters and all the members (Aadhar Card, D/L, Voter ID, Passport)
- Address Proof of promoters and all the members (through Utility bills or bank statements)
- Address proof of the business premises (through utility bills)
- NOC from the premises owner, if applicable
- Property Documents or Rent agreement, if applicable
- Form DIR – 2 with the consent of directors
- DSC & DIN of Directors
- Director specimen signatures
- Subscriber sheet duly signed
- Company Registration Questionnaire
Process for Nidhi Company Registration
1. Application for DSC & DIN
The first step for a Nidhi Company Registration is for the directors to acquire the Digital Signature Certificate and apply for the Director’s Identification Number issued by the Ministry of Corporate Affairs. Directors who already have the DIN can skip the process. The DSC is essential for all e-filling processes.
2. Memorandum of Association & Articles of Association
Drafting of Memorandum of Association & Articles of Association is essential for establishing the purpose of the Nidhi Company. These are necessary things in an organization and should be filed with the registrar of the companies.
3. Name Approval
The Nidhi company seeking registration needs to obtain approval over the entity’s name through the Ministry of Corporate Affairs. The chosen name must be unique and should not be copied from the name of any other company or trademark. The objective and business nature should be reflected through the name selected for such entities. They need to propose at least three names out of which MCA chooses the appropriate one. The application for approval is sent through PART A of the SPICe+ application form.
4. Incorporation Application
After the name is approved by the MCA, the company can begin the process of incorporation. For incorporation, you must go to the MCA official website and fill out the SPICe+ application form. After filling out the application form online, divided into two parts, PART A & PART B, any one director has to sign it. The signed application form must be submitted online along with the other required documents attached to it.
5. Certificate of Incorporation
6.Nidhi Company License
Legalixo Support in transitioning a Nidhi Company Registration
- Purchase a Plan for Expert Assistance
- Add Queries Regarding the conversion
- Provide Documents to Legalixo Expert
- Complete all other required Actions
- Get your work done!
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