Nidhi Company is basically a NBFC (Non Banking Financial Company). The word ‘Nidhi means’ funds. It is a hindi word. In India, Section 406 of the Companies Act 2013 and Companies (Nidhi Companies) Rules, 2014 governs the procedure for Incorporation Process of a Nidhi Company. Nidhi Companies deals with lending and borrowing of funds to its members. It can lend money only to its members. In South India such types of companies are more in vogue. RBI has been discretionarily empowered in India to issue direction to such Companies for matters relating to acceptance of deposits from the members. Nidhi Companies are not allowed accept deposits other than its members.
Nidhi Company Incorporation within 10 days
Incorporation of a Nidhi Company requirements
Requisites before Incorporation process
- Members : Minimum 7 members are required.
- Director: Minimum 3 Directors
- Capital : Minimum capital adequacy required to start a Nidhi Company is 10,00,000
- DIN : For 3 members.
- DSC : Digital Signature Certificate for 3 Directors
Requisites after Incorporation Process
- Minimum members: Minimum 200 members
- Net owned Funds: 10,00,000
- Minimum net owned funds to deposit ratio: 1:20
Advantages for Incorporation of a Nidhi Company
- Less Legal Compliance with Registrar of Companies
- The liability of such Company is limited
- Taxation benefits
- Minimum documentation and formalities part for loans.
- Loans are lended or borrowed only between members of the Company
1. ID proof
Pan Card / Passport / Voter ID / Aadhar Card/Driving License/
2. Address proof’s like
Bank Statement/Telephone bill /Mobile Bill/Electricity bill
Note : As per Companies Incorporation rules Telephone bill, Mobile Bill or Electricity bill shall not be older than 2 months. (It should be latest)
3. Proof of Place of Business
If Property is Rented: Rent Agreement and NOC from Landlord is required.If Property is owned: Electricity Bills or Index II is sufficient.
Procedure for Incorporation of the Nidhi Company
|Digital Signature||DIN Application||Name Approval||Submission of Documents||Start up a Company|
|DSC for Directors is mandatory||Making online Application to opt for DIN i.e Directors Identification Number||Making Application for proposed name of the Nidhi Company from Options given by directors||We will prepare all the documents on your behalf and file the same withe the Registrar of Companies and take routine follow up with the officers.||Once Certificate of Incorporation is opted, the directors can commence its business|
What We Offer- Nidhi Company Registration
We are Chartered Accountants firm in Pune, Our dedicated team of professionals consist of CA and CS. We assist you in choosing right business mode for maximizing profit and minimizing tax implications. We help and advise on incorporation of the Nidhi Company in India. We assist in Nidhi Company incorporation process in Pune simultaneously helping for opting Nidhi Company registration in Pune.
- Advise on choosing the most suitable business option
- Preparation of legal documents
- Preparation of AOA & MOA
- CA , CS Certification
- Making application to Minister of Corporate Affairs
- Taking registration certificate
- Registration of Business
- Assistance on opening bank Account
- Tax Registration
- Loan Approval
- Tax filing and Planning
FAQ's - Nidhi Company Registration
What is a Nidhi Company?
A Nidhi Company means a company which is similar to NBFC (Non Banking Financial Company) but the major difference is it lends money only to its members or borrow money only from its members. Also it can accept deposits only from its members.
How many members are required for incorporation of a Nidhi Company
Minimum 7 members are required to incorporate a Nidhi Company of which atleast 3 should be Directors.
Who is the Governing Authority for Nidhi Companies in India
Nidhi Companies fall under the ambit of two governing laws-
- Companies Act, 2013 & Companies (Nidhi Companies) Rules, 2014
- RBI Directives governing NBFC (Non Banking Financial Institution)
After Incorporation of a Nidhi Company are there any other requirements?
When a Nidhi Company is incorporated since from the date of incorporation within a period of one year it must-
– Have atleast 200 members
-Minimum Net owned funds (NOF) of 10,00,000
Are there any Statutory Complaince to be complied on part of Nidhi Company with Ministry of Corporate Affairs
Yes. Returns of Statutory compliance is required to be filled in form NDH-1 and half yearly return in form NDH-3.