Fees, Online Procedure and Documents Required.
The majority of investment organizations in India serve a substantial clientele, whereas banks offer minimal opportunities for savings growth. The Nidhi Company offers the easiest and most efficient approach to saving money while offering a variety of financial growth opportunities. It falls under the category of public limited company and is regulated under the 2013 Companies Act. Learn about the advantages, steps, costs, and prerequisites for registering a Nidhi firm.
- Describe the Nidhi Company.
- Advantages of Registering a Nidhi Company
- Which actions are not permitted by the Nidhi Company?
- The registration process of Nidhi Company
- Minimum standards
- Documents needed to register a Nidhi company
- Documents you’ll receive after being incorporated
- The registration expenses for Nidhi Company
- The entire amount of time needed to register
- Commonly Asked Questions
Nidhi Company - Incorporation Certificate [Sample]
Document Required.
What is Nidhi Company?
One kind of non-banking financial company is Nidhi Company (NBFC). Lending and borrowing money from its members is its main duty. The Ministry of Corporate Affairs regulates the organization, and its goal is to instill in its members the habit of conserving money and operating under the premise of mutual advantages.
Nidhi Company is very simple and convenient to start because it does not need a license from the Reserve Bank of India (RBI). The Mutual Benefit Finance Company is another name for it. It must have “Nidhi Limited” as the final word in its name and is registered as a public limited company.
Advantages of Registering a Nidhi Company
Habit of Savings:
The Nidhi Company’s only goal is to encourage a culture of saving among its members.
Few RBI guidelines:
Although Nidhi Company is an NBFC, the Reserve Bank of India does not need to approve it.
Limited Liability:
The Companies Act of 2013 limits the liability of directors and shareholders. The directors’ and shareholders’ personal assets are safe if the firm experiences any losses or problems.
Separate Legal Entity:
Since Nidhi Company is a distinct legal entity, it can make purchases and take on debt in its name.
Easy Formation:
Nidhi corporation formation is a rather straightforward and uncomplicated process. In contrast to other NBFCs, there are comparatively little requirements.
Ease of Management:
Despite being an NBFC, Nidhi Company is incredibly simple to run and modify within the company.
Procedure for Nidhi Company Registration
Step 1: Submit a Digital Signature Certificate (DSC) application
Since the Nidhi company registration process is entirely digital, having a Digital Signature Certificate is a prerequisite. Directors and signatories to the company’s memorandum are required to apply to the accredited authorities for a DSC. Getting a DSC is a 24-hour process that can be completed entirely online. Three straightforward verifications are involved in this process: phone, video, and document verification.
Step 2: Requesting Availability of Name
The SPICe RUN form, a component of the SPICe+ form, is used to apply for a name for Nidhi Company. The industrial activity code and the object clause of the company must be defined when creating the name application.
Step 3: SPICe Form (INC-32) filing
Following name approval, the SPICe+ form must be filled out with information about the company’s registration. It is an electronic firm incorporation proforma that has been streamlined. The form’s details are as follows:
- Information about the business
- Information about subscribers and members
- Director Identification Number (DIN) Application
- PAN and TAN application
- Directors’ and subscribers’ declaration
- Professional certification and declaration
Step 4: e-MoA (INC-33) and e-AoA (INC-34) filing
The associated forms, SPICe e-MoA, and e-AoA, must be completed at the time of applying for business registration.
Section 2(56) of the Companies Act of 2013 defines a memorandum of association (MOA). It is the cornerstone upon which the business is constructed. It outlines the company’s goals, authority, and constitution.
Section 2(5) of the Companies Act defines the Articles of Association (AOA). It contains a complete list of all the guidelines that pertain to the company’s management
Step 5: Certificate of Incorporation, PAN, TAN, and DIN Issuance
PAN, TAN, and the Certificate of Incorporation shall be granted by the relevant department following the Ministry of Corporate Affairs’ acceptance of the aforementioned documents. The business must now use these documents to open an active bank account. If you need help opening your current bank account, you can get in touch with us.
Register your Nidhi Company Online with Taxcult
A Nidhi Company’s registration procedure is intricate and requires a number of compliances. You can streamline the entire registration procedure with the help of our professionals at Taxcult. In only three simple actions, register your Nidhi firm online:
Reach out via phone or using the contact form.
Give the required paperwork.
Register your incorporation between 14–21 business days.
Minimum Standards for Registration of Nidhi Company
- A minimum of seven participants is necessary
- The company’s directors must comprise a minimum of three members.
- The authorized capital requirement is 10 lakh rupees at the very least.
- The minimum share capital required is 10 lakh rupees.
- It is not permitted to issue preference shares
- The company’s sole purpose should be to accept deposits from and lend money to its members.
Documents needed to register a Nidhi Company
- Members’ passport-sized photos
- A copy of your voter ID or Aadhar card
- A copy of the members’ PAN cards
- Phone number and email address
- Verification of the business address on file
- A recent bank statement, no more than two months old
- A certificate of no objection from the property’s owner
Documents you will receive after being incorporated
Following Nidhi Company’s establishment, you will obtain the following documents:
- Incorporation Certificate
- The company’s Permanent Account Number (PAN)
- The company’s Tax Deduction or Collection Account Number (TAN).
- Association Articles (AoA)
- Association Memorandum (MoA)
- The DIN, or director identification number
- Certificate of Digital Signature (DSC)
- Registration paperwork for EPF and ESIC
- Master data for the company
Fees for Nidhi Company Registration
Nidhi Company registration in India starts at ₹16,699 and takes 14–21 working days total, including government and professional expenses.
| Steps | Cost(Rs.) |
|---|---|
| Certificate of Digital Signature | ₹7,000 |
| DIN Allocation | ₹1,000 |
| Government Charge | ₹1,700 |
| Expert Charge | ₹6,999 |
| Total Cost | ₹16,699 |
Important Note:- States differ in how much their overall incorporation fees for a Nidhi Company are. Seven members are covered by the DSC fees. For pricing broken down by state, see the map.
Registration you should get after Company Incorporation
GST Registration
Shop & Establishment License
Trademark Registration
Start-up India Registration
Total amount of time needed to register a Nidhi Company
A Nidhi corporation can be registered in India in 14–21 working days on average, depending on the Ministry of Corporate Affairs’ (MCA) verification of the supporting documentation.
Which kinds of activities is the Nidhi Company not allowed to do?
Nidhi firms are not allowed to engage in any of the following since they are doing non-banking financial transactions:
- Promote their deposit-seeking services
- Chit funds.
- Lotteries.
- Insurance.
- Finance for Leasing.
- Finances for hire-purchase.
- Sell its members’ assets and retain them as collateral for loans.
- Forming a partnership company to conduct borrowing and lending operations.
- Taking deposits from or lending money to third parties.
Frequently Asked Questions (FAQs)
In India, a Nidhi company can be established by submitting the required paperwork and meeting the Public Limited business registration requirements as stated in the Companies Act of 2013.
A Nidhi corporation can indeed turn a profit, but its main goal is to lend and borrow money exclusively to its members.
For a Nidhi corporation, the Ministry of Corporate Affairs is the regulator.
No, it is unable to provide a car loan because Nidhi firms are not allowed to provide any kind of loan.
In India, a Nidhi business can be established by submitting the required paperwork and meeting the Public Limited business registration requirements as stated in the Companies Act of 2013.
It is true that a Nidhi business can obtain a bank loan.
Indeed, a Non-Banking Financial Company (NBFC) is what Nidhi Company is. The Mutual Benefit Finance Company is another name for it.
It is unable to provide unsecured loans. Although Nidhi Company is expressly prohibited from making any loans, it is permitted to make secured loans up to a specific sum.