Nidhi Company Registration Certificate In India

A Nidhi company in India is a non-banking financial company (NBFC) commenced under the regulatory framework of the Nidhi Rules, 2014 under section 406 of the Companies Act, 2013. Hence it has a similar body structure as a public limited company, it requires 3 directors and 7 shareholders to complete Nidhi company registration. 

What Is Registration For Nidhi Company?

A Nidhi company is an entity whose primary purpose is to manage deposits from and lend to its members and also the owner. A Nidhi company’s major goal is to encourage thrift and savings among its members while also providing financial aid through lending.

Nidhi company has various exemptions and eased laws, in tax assessment as well as annual compliance requirements making it a unique financial organization that benefits its members mutually.

Nidhi Company is a law structure which is governed by Nidhi Companies in India rules, 2014 it consists of section 406 of the Companies Act, 2013. 

What Is The Purpose and Nature Of Nidhi Company?

As you know Nidhi company is a company whose primary purpose is dealing with managing deposits from and providing loans to its members along with shareholders. In addition, Nidhi company does not promote extravagance; it promotes thrift and savings among its members while offering financial assistance through lending money.

What Are The Benefits Of Nidhi Company?

Nidhi Company Registration has many benefits such as helping to maintain the company’s extravagant expenses as well as offering financial assistance. Here we have mentioned some of the benefits you will get with Nidhi registration for your company.

Limited Liability

Nidhi company’s Directors and investors are not in danger of being seized by the bank. Nidhi company’s directors and investors also shareholders have limited liability; they are not liable to pay all debts of the company.

Better Credibility

Nidhi Company is a more reliable company than others. It is regulated by the central government under section 406 Companies Act, 2013.

Easy Access to Public Funds

Nidhi company provides loans at a lower rate than the bank rate or other NBFCs. Anyone can get a loan easily because it has a simple procedure that can be interpreted very easily.

Fewer Regulations

The central government has the directing power of Nidhi Company under Nidhi Rules, 2014. RBI did not enforce various rules in Nidhi company registration.

Single Regulatory Body

After an amendment in the Companies Act, 2013 Nidhi Company has a single regulatory body which is supervised by the Nidhi Company Rules, 2014. 

What Are The Restrictions Of Nidhi Company?

Nidhi Companies can not engage in other activities other than borrowing and lending. Nidhi Company’s current account can be accessed by its members and shareholders.

Any Nidhi Company should not engage in leasing, hire buy finance, or insurance/acquisition of securities by body corporates.

In the Name of Nidhi company, there will be no preferred shares, debentures, or other debt instruments issued. Nidhi Companies are not permitted to accept or lend money to anyone other than their shareholders or members.

Nidhi company and its shareholders along with subsidiaries will not participate in any partnership agreement activities including borrowing or lending. Nidhi Corporation stockholders should not put any of their assets up as security for the Nidhi Company. Any Nidhi Company should advertise in any publication.

What Is The Procedure Of Nidhi Company Registration?

As you know, the government has launched a portal called MCA where applicants can easily register their company. Our IE certificate expert team is an expert in all aspects of registering a company. The Nidhi Company Registration process contains various steps:

Apply for DSC & DIN

First, you need to obtain a DSC (Digital signature certificate) of all directors which will help you during the E-filing process. Once you get a DSC you need to apply for a DIN (Director Identification Number) for Nidhi company registration, DIN is given by the Ministry of Corporate Affairs (MCA).

Name Approval 

Once you get DSC, You need to ensure that your business name is available or not in the company database. If it is already taken by others you need to choose a unique business name as per rule 8 of the company incorporation rules. Our Import Export Certificate Expert will assist you in choosing a relevant name concerning the nature of your business.

MOA & AOA

SPICe E-MOA (INC-33) and E-AOA (INC-34) both forms should be drafted while applying for Nidhi company registration online. MOA contains the details of the company’s goal and objective as per under section 2(56). Besides, AOA contains the details of the company’s internal working structure and management structure of the company as per under section 2(5) of the Companies Act 2013.

Certificate of Incorporation

Once the registrar of the company (ROC) verifies your SPICe+ form and finds that the given information and documents are correct then CIN will be issued within 15-25 days.

What Documents Are Required For Nidhi Company Registration?

Nidhi company registration documents are given below:

1. Proof of the registered place of business (Ownership documents/ rent or lease agreement)
2. No objection Certificate (signed by the owner/ landlord)
3. Identity proofs
4. Address proofs of the members
5. Photos of the members
6. PAN card copies of the members
7. Digital Signature (DSC)
8. Director Identification Number (DIN) of the directors
9. Memorandum of Association of the Company (MoA)
10. Articles of Association of the Company (AoA)

What Are The Requirements After Nidhi Company Registration?

After registering your Nidhi company has various requirements:

• Membership Quota: In which year you incorporated a Nidhi company at the end of the first year it must get at least 200 members or shareholders.
• Net Owned Funds (NOFs): Nidhi company NOF should be more than INR 10 lakhs.
• NOF to deposit Ratio: The deposit ratio of NOF should be 1:20.

Unencumbered Deposits: these deposits must be over 10% of outstanding deposits.

What Are The Compliances of Nidhi Company Registration?

Compliances should be followed by all companies forming exact insights into companies’ working performance. Once you register any company under the Companies Act, 2013. It is mandated for directors & owners to adhere to as well as fulfil all compliances furthermore, Nidhi company structure body is similar to a public company hence it protects the interest of shareholders. It becomes very crucial for directors to follow the Nidhi company compliance. 

Why Do You Choose Us For The Nidhi Company Registration?

Every aspect of company registration is a speciality for our IE certificate team. We’ll help you out step by step. Our staff won’t allow you to feel uncomfortable during challenging operations. The IE Certificate team will assist you with registering your business as quickly as possible and will guarantee its growth while managing all Nidhi company registration procedures, allowing you to concentrate solely on the growth of your enterprise.

FAQs

How Long Will It Take To Incorporate A Nidhi Company?

The Nidhi company registration takes 15-30 days to get completed by the company.

What are Nidhi Company Incorporation Fees?

Nidhi Company incorporation fee is approximately INR 15,999(Including government fees, DSC, DIN, and Professional fees).