Step By Step Nidhi Company Registration Procedure:
Table of Contents
- Obtaining Digital Signature Certificate (DSC ) for All the members/Shareholders and Directors
- Preparation of requried Declarations and Documents for Nidhi Company Registraiton
- Application for Approval of name
- Preparation and Drafting of Incorporation documents
- Signing of Incorporation Documents
- Application for Incorporation of Nidhi Company with ROC
- Approval by ROC, after verifying all the required documents and information.
Minimum Requirements For Nidhi Company Registration
1. Required Minimum 3 Directors and 7 Shareholders/members
2. Can Accept Deposits From its members
3. Body Corporate and Benefits of Limited Liability
4. Can Land Money to its Members
5. Can Provide Locker Facility to its members
6. Required to have a Minimum of 200 members within one year of Incorporation
7. Best suited for Small lending and deposit Business
8. Minimum Capital Rs. 5 Lakh at the time of Incorporation and Thereafter required to have Rs. 10 Lakh.
Documents Required For Nidhi Company Registration
1. PAN of all Directors
2. Voter ID/DL/Aadhar Card/Passport of All Directors /members
3. Passport Photo of all Directors
4. Latest Bank Passbook/Statement or Electricity/Broadband Bill/Mobile Bill
5. Latest utility bill (electric bill/telephone bill) and Rent Agreement or latest tax receipt/ownership deep of the property for the property to be used for registered office
Net Owned Funds Requirements
Every Nidhi Company is required to have Minimum Net Owned Funds of Rs. 10Lakh all the time. Within one year from Registration of Company Should follow this requirement.
Net Owned Funds
Aggregate Amount of paid-up equity share capital and free reserves as reduced by accumulated losses and intangible assets appearing in the last audited balance sheet provided the amount representing the proceeds of the issue of preference share shall not be included for calculating net owned funds.
What Nidhi Company Cannot Do As Par Nidhi Rules
If you planning to Register this company , you must need to ensure that what you cannot do in Nidhi Company, Once Nidhi Company Registration is done, you must follow Nidhi Rules
- Shall not carry any chit fund, hire purchase finance leasing finance insurance or acquisition of securities issued by any Body corporate
- Not allowed to issue any kind of preference shares or any debt instruments by any name whatsoever.
- Prohibited to open any current account with its members
- Prohibited to do any compromise or arrangement or takeover unless it is passed by a Special Resolution in the General Meeting and also obtained the previous approval from the Regional Director having jurisdiction over such nidhi company
- Carry on any business other than the business of borrowing or lending in its own name
- Prohibited to accept deposits or lend amount other than its members
- Pledge any of the assets lodged by its members as security
- Prohibited to take deposits or lend money to any Body corporate
- These companies are prohibited to enter into any partnership arrangement in its borrowing or lending activities
- Prohibited to issue any advertisement in any form for soliciting deposits
How much loan a Nidhi Company can provide to its Member
- Rs. 2 Lakh where a total amount of Deposits form its members is less than Rs. 2 crore
- Rs. 7.50 Lakh where the total amount of Deposits form its members is more than Rs. 2 crore but less than twenty crore rupees
- Rs. 12 Lakh where the total amount of Deposits form its members is more than Rs. 20 crore but less than Fifty crore rupees
- Rs. 15 Lakh where the total amount of Deposits form its members is more than Rs. 50 crore
- No fresh loans exceeding 15% of above can be if Nidhi is not profitable for continuously three preceding financial years.
- Members who have taken a loan from Nidhi and defaulted in repayment of such loan shall not be allowed to take fresh loans form Nidhi.
- Only Members of Nidhi Company can take loan form Nidhi Company
How Much Interest Can Be Charged On Loans By Nidhi Company
The rate of Interest to be charged on loan given by Nidhi shall not go above seven and a half percent(7.5%) above the highest rate of interest offered on deposits by Nidhi.
i.e.7.5% the gross margin that a Nidhi Company is able to earn from the operations.