ONLINE NIDHI COMPANY REGISTRATION | REGISTER A NIDHI COMPANY

· What is a Nidhi Company?

A Nidhi company is one that belongs to the non-banking Indian finance sector and is recognized under section 406 of the Companies Act, 2013. Their core business is borrowing and lending money between their members. They are also known as Permanent Fund, Benefit Funds, Mutual Benefit Funds and Mutual Benefit Company. They are regulated by Ministry of Corporate Affairs. Reserve Bank of India is empowered to issue directions to them in matters relating to their deposit acceptance activities. However, in recognition of the fact that these companies deal with their shareholder-members only. Nidhi means a company which has been Nidhi Company incorporated with the object of developing the habit of thrift and reserve funds amongst its members and also receiving deposits and lending to its members only for their mutual benefit.Navika India Nidhi Limited is one of the best Nidhi Company in india

Nidhi companies existed even prior to the existence of companies Act 2013. The basic concept of nidhi is “Principle of Mutuality” These companies are more popular in South India, and 80% of Nidhi companies are located in Tamil Nadu.

What is the requirement for registration of a Nidhi company?

Nidhi” is a Hindi word, which means finance or fund. Nidhi means a company which has been incorporated with the object of developing the habit of thrift and reserve funds amongst its members and also receiving deposits and lending to its members only for their mutual benefit.

Nidhi company registration requires minimum 3 members. All the Nidhi company’s incorporated shall have the last word as “Nidhi Limited” as part of its name. Nidhi company is easy and economical to register. Nidhi company registration can be done through LegalRaasta in Delhi NCR, Mumbai, Bengaluru, Chennai and other Indian cities.

Nidhi Company requires minimum 3 members. It might not issue preference share. If preference shares have already been issued by a Nidhi Company before initiation of this Act, such preference shares are to be redeemed in accordance with the terms of issue of such shares. All the Nidhi company’s incorporated shall have the last word as “Nidhi Limited” as part of its name. Nidhi Company Registration is done through Legalraasta.

Which Documents required for registration?

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)

The process of Registration of Nidhi Company

Usually, Nidhi Company Registration Process takes up to 45 days, Registration of a Nidhi Company consists the following steps:

1.Minimum 7 Members and 3 Directors will be required to start the Incorporation of Nidhi Limited.

2. Apply for DIN and DSC.

3. After getting the DIN and DSC, file an application in INC-1 to MCA for reservation of name of Nidhi Company.

4. Once the name is approved, Prepare Memorandum of association and Articles of Association according to Nidhi objects and all other required documents carefully.

5.Apply for Incorporation.

6. Get Incorporation Certificate.

7. Apply for PAN and TAN

Venture Care can help you guide through the process for Nidhi Company or Need of Nidhi Company registration easily & also helps in the Business Valuation Services

If you have any query please comment in the comment box below or call us on 9172713075

 

[Dhruv Bindhani]

This article explains what a Nidhi Company is in India, its regulatory framework, registration requirements, and the process to establish one.1




What is a Nidhi Company?

A Nidhi company is a type of Non-Banking Financial Company (NBFC) in India, recognized under Section 406 of the Companies Act, 2013.2 Its core business revolves around borrowing and lending money exclusively among its members.3 They are also known as Permanent Fund, Benefit Funds, Mutual Benefit Funds, and Mutual Benefit Companies.4 The fundamental principle governing them is "Principle of Mutuality."

• Purpose:To cultivate habits of thrift and savings among members, and to provide financial services (deposits and loans) solely for their mutual benefit.5
  
  
• Regulation: Primarily regulated by the Ministry of Corporate Affairs (MCA).6 The Reserve Bank of India (RBI) has powers to issue directives regarding their deposit acceptance activities.
  
  
• Popularity:They are particularly prevalent in South India, with 80% located in Tamil Nadu.7
  
  
• Naming Convention: All incorporated Nidhi companies must have "Nidhi Limited" as the last words in their name.8
  

Requirements for Registration:

• Minimum Members: A Nidhi company requires a minimum of 3 members for registration, and 7 members to begin the incorporation process.
• Directors: A minimum of 3 directors are required.9
  
  
• Shares: Cannot issue preference shares.10 If previously issued, they must be redeemed.
  
  
• Ease of Registration: Described as "easy and economical to register."

Documents Required for Registration:

1. Proof of registered business place (ownership/rent/lease agreement)11
   
   
2. No Objection Certificate (from owner/landlord)
3. Identity proofs of members
4. Address proofs of members
5. Photos of members
6. PAN card copies of members
7. Digital Signature (DSC)
8. Director Identification Number (DIN) of directors
9. Memorandum of Association (MoA)
10. Articles of Association (AoA)

Process of Nidhi Company Registration (approx. 45 days):

1. Gather minimum 7 members and 3 directors.12
   
   
2. Apply for DIN (Director Identification Number) and DSC (Digital Signature Certificate) for directors.13
   
   
3. File application in INC-1 to MCA for name reservation ("Nidhi Limited" must be part of the name).
4. Once the name is approved, prepare MoA and AoA according to Nidhi objects and other necessary documents.
5. Apply for Incorporation.
6. Obtain the Incorporation Certificate.
7. Apply for PAN and TAN.

The article mentions that services like LegalRaasta and Venture Care can assist with the registration process and related services like Business Valuation.