Starting at
Rs. 66,000 Only
(Within minimum time frame)
+91-9654438893
Your Details
Nidhi Company
Nidhi Company is Company which is established mainly with the purpose of promoting the habit of savings among the members of the Company. Such Companies received deposits from its other members and create a common pool and then money out of such pool is lent to its members on need basis at nominal interest rates. This activity of acceptance and lending of money is governed by the Rules made in this behalf. A Nidhi Company should be in the nature of the Public Company.
Features of Nidhi Company
- Minimum paid up capital: It shall have a minimum paid up equity share capital of Rs.5,00,000/-
- Types of shares: Nidhi Company cannot issue preference share capital at any time.
- Minimum no. of members: It should have a minimum of 200 members within 1 year from the date of incorporation.
- Minimum net-owned funds: The Company should have a minimum net-owned funds of Rs. 10,00,000 or more and ratio of net owned funds to deposit shall be not more than 1:20 within 1 year from the date of establishment.
- Minimum Directors: It should have a minimum of 3 Directors and such should also be the members of the Company.
- Unencumbered deposits: Unencumbered deposits should not be less that 10% of the outstanding deposits.
Advantages of Nidhi Company
- Promotes savings among middle and lower class people and families;
- Loans available to its members at lower rate of interests;
- Loans are available to its members easily with minimum documentation;
- Since the company is registered, chances of fraud or losses to members are low;
- Separate legal entity and easy to manage.
Procedure for Registration
Checking the name availability of the Company and applying to ROC for obtaining the approval of the name.
Applying for the DIN and digital signatures of the Directors of the Company.
Drafting of the Memorandum and the Articles of association of the Company
Filing/ E-filing of the all the relevant documents with the ROC and obtaining the Certificate of Incorporation of Company
Opening the bank account and applying for PAN/ TAN/ other registrations.
Documents required
- DSCs and DINs of the proposed directors;
- PAN of all the Directors;
- Identity proof of all the directors;
- Copy of the bank statement/ electricity bill/ telephone bill;
- NOC from the landlord, in case of rented premises;
- Copy of telephone bill/ electricity bill/ gas bill, etc as proof of place of business.
Precautions to be taken while keeping the name of the Company:
- The name of the Company should end with “Nidhi Limited” for Nidhi Companies provided a declaration is submitted by the applicant that the requirements mandated by the respective regulator, such as IRDA, RBI, SEBI, MCA etc. have been complied with by the applicant.
- Proposed name should NOT be identical with another existing name of the Company.
- Certain words such as India, Prime Minister, President, etc shall not be used in the name of the Company.
- It is not necessary to reflect the object of Company in Name of the Company.
- Company can be incorporate with the abbreviated word of the name of the promoters.
- It is prohibited to use certain emblems and names in an improper way.
FAQ’s
1) What is a Nidhi Company?
Unlike banks and NBFC’s, Nidhi Company is incorporate for the mutual benefit of its members. It is not entitled to accept deposits from or carry out any other finance activity apart from its members.
2) What are the legal statutes governing the Nidhi Companies?
Nidhi Companies are registered under the Companies Act and is governed by its specific as well as general provisions. Apart from the Act, there are Nidhi Company Rules which are specific and stringent in nature.
3) Does Nidhi Company need to get registered with RBI as NBFC?
No. Since Nidhi Company operates with its members, they are specifically exempted by RBI to register itself as NBFC’s.
4) Are the deposits with the company safe and secured?
Yes the deposits are secure since Ministry of Corporate Affairs along with Government of India has made stringent rules with regard to regulating the Nidhi Companies.
5) Who all can invest in Nidhi Companies?
Only members/ shareholders can invest in or can accept loans from nidhi companies.
6) What are the restrictions on Nidhi Companies?
- Shall not carry on the business of Chit Fund, Hire Purchase Finance, Leasing Finance, Insurance or Acquisition of Securities issued by anybody corporate;
- Shall not issue Preference Shares, Debentures or any Other Debt Instrument by any name or in any form whatsoever;
- Shall not open any Current Account with its members;
- Shall not acquire another company by Purchase of securities or Control the composition of the Board of Directors of any other company in any manner whatsoever or Enter into any arrangement for the change of its management, unless it has passed a special resolution in its general meeting and also obtained the previous approval of the Regional Director having jurisdiction over Nidhi;
- Shall not carry on any business other than the business of borrowing or lending in its own name;
- Shall not accept Deposits from or lend to any person, other than its members;
- Shall not pledge any of the assets lodged by its members as security;
- Shall not take Deposits from or lend money to anybody corporate;
Other auxiliary services provided by us with regard to setting up of business:
- Obtaining DIN for the Directors;
- Obtaining DSC for the Directors;
- Opening of the bank account for the Company;
- Applying PAN and TAN of the Company;
- Registration under GST/ service tax/ VAT/ Excise/ PF/ ESI;
- Review and maintenance of records as required under GST/ service tax/ VAT/ Excise/ PF/ ESI;
- Applying for Import/ export code;
- Assisting the clients in getting loans from the bank;
- Book-keeping services;
- Filing of TDS/ GST/Service tax/ VAT/ Excise returns;
- Computation of income tax and filing of Income tax returns;
- Filing of other forms as required by MCA;
- Maintenance of statutory registers/ minutes of the meetings;
- Filing of annual returns with MCA;
- Providing internal audit services;
- Assisting in finding CA’s/ lawyers/ CS and other solicitors for your work;
- Registration of Copyrights, trademarks and patents;
- RBI approval for foreign companies investing in India and FIPB approval.