Nidhi Company

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NIDHI COMPANY

Nidhi Companies belong to the Non-banking financial companies structure. Registering a Nidhi Company allows a Nidhi to borrow from its members and lend to the members.Nidhi Companies are registered in India are created to cultivate the habit of thrift and savings among its members. The funds that are contributed to a Nidhi Company are only from its members.

For Incorporating a Nidhi Company, no license is required from the Reserve Bank of India. Hence, the formation of the Nidhi Company is easy. Nidhi Companies are registered as Public Companies and should have Nidhi Limited at the last of the name.It should also be noted that the Nidhi Companies fall under the purview of the Reserve Bank of India as the functioning of Nidhi Companies is similar to NBFCs.

Benefits-of-Nidhi-Company

Documents Required for Nidhi Company Registration

  1.  Directors Identification Number
  2. PAN number of the shareholders as well the Directors
  3.  Residential Proof of the shareholders and directors
  4.  Photographs
  5.  Identification Documents such as the Aadhar card
  6.  Rent agreement or lease agreement of the Registered office
  7.  If the office is owned, then ownership information or the registered office address must be provided
  8.  NOC if required
  9.  MOA
  10.  AOA
  11. MCA form
FREQUENTLY ASKED QUESTIONS (FAQS)

How many people are required to register a nidhi company?

A minimum of 3 directors and 7 shareholders are required to register a Nidhi company in India.

What are the requirements to be a Director?

The Director needs to be over 18 years of age and must be a natural person.

Is an office required to start a Nidhi Company?

An address in India where the registered office of the Company will be situated is required. The premises can be a commercial / industrial / residential where communication from the MCA will be received.

Do I have to be present in person to incorporate a Nidhi Company?

No, you don’t have to be present at our office or appear at any office for the registration of a Nidhi Company.

What is Digital signature Certificate?

A Digital Signature establishes the identity of the sender or signee electronically while filing documents through the Internet. The Ministry of Corporate Affairs (MCA) mandates that the Directors sign some of the application documents using their Digital Signature.

What are the documents required for Nidhi Company Registration?

Identity proof and address proof is mandatory for all the proposed Directors of the Nidhi Company. PAN Card is mandatory for Indian Nationals. In addition, the landlord of the registered office premises must provide a No Objection Certificate for having the registered office in his/her premises and must submit his/her identity proof and address proof.

How Long it will take to Incorporate a Nidhi Company?

renitadvisors.com can incorporate a Nidhi Company for in 20-30 days. The time taken for registration will depend on submission of relevant documents by the client and speed of Government Approvals. To ensure speedy registration, please choose a unique name for your Company and ensure you have all the required documents prior to starting the registration process.

How long is the registration of the Company valid for?

Once a Nidhi Company is incorporated, it will be active and in-existence as long as the annual compliances are met with regularly. A Nidhi Company must have a minimum of 200 shareholders and comply with other criteria within one year of incorporation. In case, annual compliances are not complied with, the Nidhi Company will be asked to refund the deposits.

What is DIN?

Director Identification Number is a unique identification number assigned to all existing and proposed Directors of a Company. It is mandatory for all present or proposed Directors to have a Director Identification Number. Director Identification Number never expires and a person can have only one Director Identification Number.

Who regulates the Nidhi Companies?

Ministry of Corporate Affairs regulates Nidhi Company and is also accountable for Nidhi Company Registration.

Can Nidhi companies issue debt securities or preference shares?

No Nidhi Companies cannot issue debentures, preference shares or any other kinds of debt securities.

Can a Nidhi company operate in another state?

No, Nidhi Company cannot perform their operations outside the boundaries of the state in which the registration has taken place.

Can Nidhi Companies issue unsecured loans?

No, Nidhi Company cannot issue unsecured loans. However, it can issue secured loans to its members.