Nidhi Company Registration in India ( Nidhi Limited)

What is Nidhi

Nidhi is a Finance Company that carries on the business of accepting deposits (I.e. Fixed Deposits, Recurring Deposits etc.) and lending money to members against any security (Jewelry, Fixed Deposits and mortgage of property etc.).

Nidhi works on the principle of mutual benefit by getting savings from members and lending only to members and never have dealing with Non-members.

Registration & Minimum No. of Members for Nidhi

• (i) A Nidhi shall be incorporated as a Public Company and shall have the word “Nidhi Limited” as parts of its name.
• (ii) Nidhi should have a minimum paid-up equity share capital of ten lakh rupees.
• (iii) Nidhi shall have object in its Memorandum of Association of cultivating the habit of thrift and savings amongst its members, receiving deposits from, and lending to, its members only, for their mutual benefits.
• (iv) Should ensure two hundred members within a period of 120 days from its incorporation.

Director or shareholder requirement for Nidhi Registration (Minimum persons required)

• A minimum of three directors are required for Nidhi company registration.
• A minimum of seven shareholders are required for Nidhi company registration.
• Directors or shareholders can be same persons i.e., 7 persons can start a Nidhi company as shareholders and directors.

Documents required for Nidhi company registration (Documents required)

Initially, you need to provide following information

• Name of proposed company
• State of registration
• Mail addresses and contact numbers of Directors/Shareholders

Documents required are as follows

• I. Identity and residence proof of Directors/Shareholders
  1. Scanned copy of pan card
  2. Scanned copy of Aadhaar card/driving license/voters’ identity card
  3. Bank statement/electricity bill or any other utility bill not older than 2 months (should be in the name of Director or Shareholder only)
• II. Documents for registered office of Company:
  1. Scanned copy of electricity bill or no objection certificate in case of owned property or
  2. Scanned copy of rent agreement, electricity bill and no objection certificate if registered office premise is rented or
  3. Scanned copy of sale deed/property deed and no objection certificate in case of owned property and no electricity bill is available.

Nidhi company registration package inclusions

• Digital Signature of 7 Directors& Promoters.
• DIN of Directors
• Drafting of Moa & Aoa of the Company
• Filing of company registration application with Registrar of Companies along with MOA, AOA and application for allotment of Pan and Tan.
• Certificate of Incorporation
• Pan of the Company
• Tan of the Company
• PF & ESIC registration of the Company
• Assistance in opening bank account.

Features of Nidhi Company

Mutual Benefit

The primary objective of a Nidhi Company is to promote the habit of thrift and savings among its members, and to provide them with a platform for mutual benefit by lending and borrowing money among themselves.

Limited Deposit Acceptance

A Nidhi Company can accept deposits only from its members, and the maximum amount of deposits that can be accepted cannot exceed 20 times the net owned funds of the company.

Strict Regulation

Nidhi Companies are regulated by the Ministry of Corporate Affairs and must comply with various regulations and guidelines issued by the Reserve Bank of India (RBI).

No External Borrowings

A Nidhi Company cannot borrow from any external sources

Secured Loan to its members

A Nidhi company can only grant secured loan to its members. Securities against which loans can be granted are gold, property, and deposits.

Limits the personal liability.

A Nidhi company provides limited liability protection to its owners and shareholders. This means that if the company fails, the owners are not personally liable for any debts or liabilities incurred. This provides a great deal of financial security to the owners, as they are not at risk of losing their personal assets in the event of a business failure.

Separate legal entity

A Nidhi company is a separate legal entity. This means that the company is recognized by the law as an independent legal entity and is responsible for its own liabilities and obligations. This provides the owners and shareholders with a great deal of freedom as they are not personally responsible for any of the company’s actions.

Limited Deposit Acceptance

A Nidhi Company can accept deposits only from its members, and the maximum amount of deposits that can be accepted cannot exceed 20 times the net owned funds of the company.

Nidhi Company Registration process (Registration Process)

• Choose a Unique Company Name The company name should be unique and should not be identical or too similar to existing company names already registered with the Ministry of Corporate Affairs (MCA)
• Obtain Digital Signature Certificates The applicant should obtain the Digital Signature Certificates (DSC) of all the directors and the promoters.
• Draft the Memorandum of Association and Articles of Association The Memorandum of Association (MOA) and Articles of Association (AOA) should be drafted as per the Companies Act, 2013.
• File web form INC-32The web form Spice INC-32 alongwith Memorandum of Association and Articles of Association should be filed with the Registrar of Companies (ROC).
• Obtain Certificate of Incorporation Upon successful filing of web form INC-32, the Registrar of Companies will issue Certificate of Incorporation.
• Obtain Pan and Tan of Company Pan and Tan of Company are issued along with Certificate of Incorporation.

Why Fastlegal

We make it easier for entrepreneurs to get their Nidhi Company company registered online from the comfort of their home. With Fastlegal, you can get your Nidhi Company company registration done in just 7-10 working days. We provide a comprehensive package that includes not only the registration process but also guidance through the entire process. This includes company name verification, filing of the documents, obtaining Director Identification Number and Digital Signature Certificate, getting the company registered with the Registrar of Companies, and more. Additionally, we also offer post-registration services like GST registration, filing of annual returns, and maintenance of statutory records.