Nidhi Company Registration in India

Planning to start a finance busines or Nidhi Company in India? Then you are at the right place. We are a reputed Nidhi Company Registration consultant based in Ghaziabad, Delhi NCR.

Nidhi Company or Mutual Benefit company is the most suitable form of company to start the loan business in India. Minimum seven (7) members or person requires to start the Nidhi Company. The minimum capital requirement for Nidhi Company registration is Rs.5 lakh rupees. Every Company incorporated as a “Nidhi” shall have the last words ‘Nidhi Limited’ as part of its name.

nidhi company registration

 

 

 

 

 

 

What is Nidhi Company?

“Nidhi” means a company which has been incorporated as a Nidhi Company with the object of cultivating the habit of
thrift and savings amongst its members, receiving deposits from, and lending to, its members only, for their mutual
benefit, and which complies with the rules made by the Central Government for regulation of such class of companies.’.

In the context of Hindu scriptures, Nidhi is a treasure, constituted of nine treasures, belonging to Kubera, the god of wealth

Therefore, Nidhi Company Limited can only do business of:

  • accepting deposit and lending money to its members only.
  • It cannot deal with the public directly and can only work with its members.
  • However, one can easily make members under Nidhi Company with few kyc documents
  • Also, Nidhi Company registration is the only form of company available to start the loan or financing business in India without the RBI approval.

Nidhi Company can open three branches after three years of working within the district. Further, to open any branch outside the district, the company shall require RD approval. Furthermore, the Nidhi Company cannot work outside the state. Hence, if you want to expand your business to another state, then you will need to register another Nidhi Company.

 

Nidhi Company Registration in Ghaziabad

Fast track Nidhi Company Registration in Ghaziabad. We are top most company formation consultant in Ghaziabad Uttar Pradesh.

We (Shubhamanand.com) are a specialized company for registering and managing Nidhi Companies in India and manages hundreds of companies across India. We are one of the top Nidhi Company Consultant in Ghaziabad, Delhi NCR. We are also a top most Nidhi company registration agency in India having expertise for nidhi registration and managing business in India.

Requirements for minimum Share Capital and Owners’ Funds

A Nidhi Company to be incorporated under the companies Act, 2013 shall be a public company and shall have a minimumpaid up equity share capital of five lakh rupees (Rs.500,000). Nidhi Company can’t issue preference shares.

 

Requirements for minimum number of members

Minimum of seven members / person is required to start a Nidhi Company out of which three members shall be directors of the company.

Our Company Registration package include:

  • Company Name Suggestions / Idea (if required)
  • Applying & Obtaining Name approval from MCA (Ministry of Corporate Affairs)
  • 7 DSC (Digital Signature)
  • 3 DIN (Director Identification Number) 
  • Drafting of MOA
  • Drafting of AOA
  • Application Preparation for Incorporation
  • Application Filing for Incorporation of Company with requisites attachments on MCA portal
  • Payment of Government fees to MCA
  • Obtaining Registration Certificate 
  • Applying and obtaining PAN of the Company
  • Application for TAN of the Company
  • PF/ESI Registration
  • GST Registartion (if required)
  • Logo

Documents required for Nidhi Company

Documents Required for Nidhi Company Registration

Identity Proof (of each directors / members):

  • Copy of PAN Card (of all 7 members) AND
  • Copy of – Voter Id or Aadhaar Card or Passport or Driving License (any of the following)

Address Proof (of each directors / members):

Any one of the following:

  • Latest Bank Statement (not older than 2 months) or
  • Telephone bill or
  • Gas Bill or
  • Mobile Bill,
  • Electricity Bill

One Color Passport size photo (of all 7 members)

E-mail Id & Mobile Number (otp needed)

Proof for Registered Office Address:

  • Electricity Bill copy (max. 2 months old) AND
  • NOC from owner of premise OR
  • Rent Agreement (In case of rented premise)

Features of Nidhi Company

  1. Separate Legal Entity
  2. Perpetual Existence
  3. Borrowing Capacity
  4. Best form of business who is looking for funding
  5. Easy to maintain
  6. Best form of business to scale up in the long run

General restrictions or prohibitions on Nidhi Company

No Nidhi Comany shall—

  • carry on the business of chit fund, hire purchase finance, leasing finance, insurance or acquisition of
    securities issued by any body corporate;
  • issue preference shares, debentures or any other debt instrument by any name or in any form;
    open any current account with its members;
  • carry on any business other than the business of borrowing or lending in its own name:
  • accept deposits from or lend to any person, other than its members;
  • pledge any of the assets lodged by its members as security;
  • take deposits from or lend money to any body corporate;
  • enter into any partnership arrangement in its borrowing or lending activities;
  • issue or cause to be issued any advertisement*** in any form for soliciting deposit:
  • acquire another company by purchase of securities or control the composition of the Board of Directors of any other company 
  • pay any brokerage or incentive for mobilising deposits from members or for deployment of funds or for
    granting loans.

***Note: Private circulationof the details of fixed deposit Schemes among the members of the Nidhi
carrying the words “for private circulation to members only” shall not be considered to be an advertisement for
soliciting deposits. 

Nidhi Company Rules, 2014 & Rules 2019 (RBI Requirements)

Nidhi Company does not require any RBI approval to get registered in India.

  • One can register a Nidhi Company in India without any RBI approval.
  • There is no RBI requirement for Nidhi Company incorporation.
  • Nidhi Company is said to be one of the easiest mode to start the finance or lending business in India.
  • RBI does not govern the Nidhi Companies.
  • Nidhi is governed by the central government through Nidhi rules, 2014 and Rules 2019.
  • Nidhi rules laid down the complete set of code of consuct or rules.
  • According to which every Nidhi Company operate in India.
  • Nidhi Company rules, 2014 contains various rules describing the loan, deposits, Compliances, branches etc about the Nidhi Company.

 

Mandatory Compliances after Nidhi Company Registration

Every Nidhi shall, within a period of one year from the date of incorporation, shall ensure that it has—

  • not less than 200 members;
  • Net Owned Funds of ten lakh rupees or more;
  • unencumbered term deposits of not less than ten per cent of the outstanding deposits as specified in
    rule 14; and
  • ratio of Net Owned Funds to deposits of not more than 1:20.

Apart from the above requirements there are basically three FORMS need to file on timely basis to maintain the status of Nidhi Company. 

Form NDH-1

NDH – 1 is an yearly statement filed with the ROC as per the terms of Nidhi Rules 2014. If this return is not filed on or before the due date* , then, Nidhi Company will loose thw status of Nidhi Company.

*Within 90 days from the close of the first financial year after its incorporation and where applicable, the second
financial year,

Form NDH-2

The Company can request MCA for an extension if it has not been able to make  minimum 200 members in its first financial year.

Form NDH-3

Other than the above Form NDH-1, a half-yearly return is also required to be filed in Form NDH-3. NDH – 3 return filed in order to check whether the Nidhi company is working as per the rules or not. This return is to be filed by 30th September and 31st March each year.

Audit & Annual Return Filing with ROC

  • A Nidhi Company must file its Annual Returns with MCA through Form MGT-7.
  • Profit, Loss and Balance sheet
  • AOC-4
  • DIR-3 KYC (Director Annual KYC)
  • ITR (Income tax Return)

Regulatory Rules for Opening a Branch by Nidhi Company

FAQs for Nidhi Company Registration

What are the requirements for registration of a Nidhi Company?

A Nidhi to be incorporated under the companies Act shall be a public company and shall have the last words ‘Nidhi Limited’ as part of its name.  

Nidhi company shall have a minimum paid up capital (equity share) of 5 Lakh rupees.Apart from that to register a Nidhi Company it is necessary to fulfill the following criteria:

  • It should have at least 7 members and out of which minimum 3 shall be Directors.
  • The main objects should be to cultivate the habit of thrift and savings among its members.
  • And it can accept deposits and lend money only to its members and shall work for the mutual benefit of its members.

Can a Minor become a member of Nidhi Company?

No, a minor can not be admitted as a member of Nidhi Company. Provided that deposits may be accepted in the name of a minor if they are made by the natural or legal guardian who is a member of Nidhi.

Can a body corporate (company) or trust become a member in a Nidhi company?

No. a Nidhi Company can not admit a body corporate or trust as a member.

What are the regulatory requirement of a Nidhi Company after registration?

Every Nidhi company shall, within a period of one year from the date of incorporation, ensure that:
(a) It has not less than two hundred (200) members;
(b) It has Net Owned Funds of ten lakh rupees or more;
(c) Unencumbered term deposit must be at least 10% of the term deposit.
(d) The ratio of Net Owned Funds to deposits of not more than 1:20.

Can a Nidhi company open a branch?

A Nidhi company can open a branch(s), only if it has earned net profits after tax continuously during the
preceding three financial years.

What are the restrictions on Nidhi Company?

Refer to the above explanation – General restrictions or prohibitions on Nidhi Company