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OneClick Business Solutions

REGISTER A NIDHI COMPANY

in just 14,900/- (inclusive of all taxes & fees)

Keynotes on Nidhi Company Registration

Lowest fees across India
It takes 10 to 15 days for Nidhi Company Registration
Minimum capital to start Rs. 5,00,000/-
Instant access to Nidhi Software & Compliances

NIDHI COMPANY REGISTER

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Register Your Nidhi Company Online in Fastest Way

The core business activity of a nidhi company is to borrow and lend money to its members only. A nidhi company can take deposits from its members and offer money to them. One Click Business Solutions Private Limited has a team of passionate and highly experienced professionals to offer nidhi company registration service.

We help growing entrepreneurs to process their nidhi company registration documents accurately and perform the registration process in fastest and hassle-free ways. Our experts have in-depth experience to provide multiple services like tax calculation, registration of different businesses like private, public, trust, society, GST registration etc.

We are aware of nidhi company registration online procedure to make the registration process in fastest way. At One Click Business Solutions Private Limited, we use state- of-the-art technology and our experts are well-experienced with Tally, MS Office, SAP and other hi-end applications. You can contact us to get reliable and highly-experienced nidhi company registration consultants.

One Click Business Solutions Private Limited has qualified and strongly motivated man power strength. We always keep ourselves updated to all technical updates, development and changes while dealing with any field. Our professionals offer the best services in cost-effective nidhi company registration fees. If you want to start your nidhi company in low cost, contact us as soon as possible.

Procedure for Nidhi Company Registration

Although registration procedure of a nidhi company is easy yet, support from a professional is recommended for filing difficult forms within proper deadline. It may seem difficult to understand government portals and terms therein too. Let us know the steps of Nidhi company incorporations :

KYC of all the Directors and Shareholders

At least 3 directors and 7 members are needed. Same individuals can be both members and directors.

Digital Signature

DSC (Digital Signature) is a fundamental need for initiating the Nidhi Company Registration Process. All the forms are submitted must be self-attested.

Approval of Name

The suggested names of Nidhi Company must be unique and should not match the names of already registered companies. The name can be reserved with Reserve Unique Name (RUN) feature.

Final Incorporation (MoA and AoA)

Once approval of name procedure is completed, the application for Nidhi Company Registration should be submitted through SPICe Form. The application should accompany Memorandum of Association (MoA) and Articles of Association (AoA) of Nidhi Company. Once proper inspection of the application is completed, COI is issued.

PAN and TAN

PAN and TAN applications can be completed with Nidhi Company Registration because it is incorporated in the SPICe Form.

WHAT DO YOU GET IN NIDHI COMPANY

1 RUN Application Form

3 Director Identification Number

7 Digital Signature

Memorandum Of Association

Article of Association

PAN Card Of Company

TAN Number Of Company

Certificate Of Incorporation

Board Resolution To Open Bank Account

GST Registration

Share Certificate

Documents Required For Nidhi Company Registration

How To Register Nidhi Company in Kolkata-Delhi-UP

PAN CARD

Pan card is required for all the Directors and Shareholders of the company.

ID PROOF

Driving License, Voter Id Card or Passport. Any one Id Proof is required for all the Directors and Shareholders of the company.

BANK STATEMENT

Latest Bank Statement not older than 2 months is required for all the Directors and Shareholders of the company.

PASSPORT SIZE PHOTO

Passport size photograph is required for all the Directors and Shareholders of the company.

REGISTERED OFFICE PROOF

Latest Utility bill not older than 2 months, Rent agreement in case of rented property Registry Proof or House Tax Receipt in case of owned property and No Objection Certificate (NOC) from the owner

Process Of Nidhi Company Registration

Nidhi Company Registration Documents in Kolkata-Delhi-UP-Agra-Jaipur

Name Approval -

You need to submit all the required documents.

We will verify all the documents and then apply for the name approval through the RUN application form. In one form we can apply for 4 names. Name of the company is subject to Government approval.

Digital Signature -

After the name approval of the company, we will apply for the Digital Signature. For Digital Signature Video Verification will be required.

Documents Preparation -

After Name approval and Digital signature, we will draft Memorandum of Association, Article of Association and subscription statement of your company and will submit it to the Registrar of Companies with prescribed e-form Spice 32. We will apply for PAN and TAN application simultaneously.

Company Incorporation -

Once all the documents submitted are duly verified by Registrar of Companies, the approval is given and the Certificate of Incorporation is sent to you on your email id.

A few Key Points to remember before starting a Nidhi Company in India

Regulator –
Nidhi Rules 2014 and Companies Act 2013 controls the operations and function of Nidhi Company in India.

Lowest Fees –
It is possible to start Nidhi Company within Rs 20000.p>

Not any action of Microfinance –
Nidhi Company is not permitted to perform microfinance business in India and vehicle finance business.

No Approval of RBI –
Nidhi Company is outside the glance of Reserve Bank of India. It does not need RBI's license for managing a loan business in India.

Interest on Loan –
Maximum interest of 20% pa can be charged under reducing balance method.

At least 200 Members –
At least 200 members should be added within 12 months.

Loan against Security –
A Nidhi company can offer credits against security. Securities incorporate property, gold, LIC and FD.

Branch –
District level operations are conducted for the first 3 years. Once the approval is obtained from Regulator Director, it is possible to make 3 offices in the district or outside the area.

Advantages of Nidhi Company Registration

Incorporation of Nidhi Company is common for individual who want to begin financial services but have certain inadequacy of capital. A number of reasons are there for the reputation of Nidhi companies. Let us concentrate on them :

Limited Liability –
Under the Companies Act 2013, the liability of managers and directors is under certain limits.

Distinct Legal Existence –
Besides shareholders and promoters,, it includes a separate legal body. Nidhi Company can get property on its name and also debts are incurred.

Simple Management –
It is more comfortable to execute certain changes in Nidhi Company compared to other NBFCs.

Long-lasting Existence –
Nidhi Company includes a long-lasting existence. It is not changed by departure or death of any one or all the shareholders.

Trustworthiness in Market –
Nidhi Companies are administered by the Ministry of Corporate affairs. Therefore, it is more reliable compared to other institutions managed by state governments.

Disadvantages of Nidhi Company

Following are the disadvantages of Nidhi Company :

Limited Issuance

Strict Rules

Prohibited to provide deposits to outside members

Important Facts about Nidhi Rule 2014

According to the rule 6 of the regulations stated in the Nidhi company rules 2014, following tasks are not allowed :

Issuing debentures, preference shares or any other debt securities

Carrying on the business of leasing finance, chit fund or acquisition of securities

Buying securities of a company to acquire it

Opening of a current account with the members

Accepting deposits from non-member individual

Continuing other business besides borrowing and lending to the members

Joining a partnership for the task of borrowing and lending

Taking or lending deposit from a corporate

Assurance of members' assets that are kept as security

Advertising to encourage deposits

Payment of incentive in order to mobilize deposits

Things to know before applying for Name Approval of a Nidhi Company

Certain facts are there to concentrate before choosing the name of the Nidhi Company. Let us focus on them :

Unique –
The name should be unique and not alike with any active company

Easy and Short –
Easy to speak and easy to memorize

Suffix –
The name of the company should end with Mutual Benefit Nidhi Limited or Nidhi Limited

Relevancy –
It should be similar with the brand value and objects

Should not break any laws –
This is essential to follow Provisions of Emblems and Names Act, 1950

Must not be insulting –
The name must not be insulting to any religion, culture or group of individual

Who is the Controller of Nidhi Company?

Nidhi Companies are under Non-banking Financial Sector (NBFC). NBFCs are registered under Companies Act 2013 and managed by Reserve Bank of India. However, Nidhi Company is controlled by Nidhi Rules, 2014.

The registration of Nidhi Companies is accomplished according to Section 406, Companies Act, 2013.

Registration and Operations of Nidhi Company are exempted by RBI from its core provisions as it is dealing with shareholders and members. Although, RBI keeps its authority to give directions for matters related to deposit taking tasks of Nidhi Companies.

What is registration Fee of Nidhi Company?

Complete Nidhi Company registration fee is Rs.__________________________________________ inclusive of all charges. We have a dedicated team of industry professionals who complete the registration procedure of Nidhi Company within 10 to 15 days. You need to offer all the essential documents and registration fees of Nidhi Companies.

What are the compulsory compliances for Nidhi Company?

NDH 1 –
The Nidhi Company must submit the members' list within 90 days since the completion of each financial year.

NDH 2 –
The Company can demand Ministry of Corporate Affairs for the extension if Nidhi Company cannot add 200 members in a year.

NDH 3 –
A half yearly return along with above form is needed to be filled in Form NDH 3.

Profit & Loss and Balance Sheet –
The financial statements and other corresponding documents are needed to be submitted in Form AOC-4.

ROC Annual Returns –
This is essential for a Nidhi Company to complete filing annual return with Ministry of Corporate Affairs through Form MGT-7.

Income Tax Returns –
Annual returns must be filed by Nidhi Company by 30th September of the next financial year.

Comparison between Nidhi, Society and Micro Finance


Points Nidhi Company Registration NBFC Registration Procedure India (Micro Finance) Society Registration process in India
Minimum Capital Rs 5 Lakh Rs. 5 Crore Varies in different states
Number of Person needed 7 2 15 or more
Approval of RBI Not needed Compulsory Not applicable
Area of Operation District level India Applicable district
Time and Cost of Registration 15 days and Rs 15999 3 to 5 Months and Rs 6 to 7 lakhs 1 to 3 months and Rs 15000 to 20000
Ownership Held by shareholders Held by shareholders Decided by elections
Perfect for Beginner Experienced Moderate experienced

Frequently Asked Questions about Nidhi Company Registration

Ques: What is Nidhi Company?

A Nidhi Company is approved under section406 of the Companies Act 2013 and belongs to the non-banking Indian finance sector. Their business includes lending and borrowing money among members. They are also called benefit funds, permanent fund, mutual benefit company and mutual benefit funds. They are governed by Ministry of Corporate Affairs. Reserve Bank of India has the authority to issue directions related to activities to take deposit. These companies manage their shareholder members only.

Ques: Why Nidhi Company should be registered?

Low mobilization of deposits

Perfect for middle and lower-income groups

Loan at lower interest rates

Secured and on-time returns

There is not any extra interference

Ques: What are the post-incorporation needs for Nidhi Company?

Following conditions should be fulfilled within 1 year since when the company is commenced :

Minimum 200 shareholders are needed

At least Rs 10 lakh net owned fund is required

At least 10% of the unpaid deposits should be taken as encumbered deposits

Deposits cannot be accepted by company exceeding 20 times of net owned fund

Ques: What is known as DIN?

Director Identification Number or DIN is allotted to a potential director or an existing director of any company that gets incorporated or to be incorporated. Ministry of Corporate Affairs issues DIN which is unique identification number.

Ques: What is called DSC?

Digital signature certificate denotes signing the important documents by an authorized individual digitally or electronically. This is used for signing the electronic forms only. It is not applicable for physical documents.

Ques: Can Minor become a director?

No, Minor cannot be a director as DIN is essential. To obtain a DIN, an individual should be at least 18 years or above.

Ques: Can foreign nationals or NRI be a director of an Indian organization?

Yes, foreign nationals or NRIs can be a director and shareholder of an Indian organization. The company should include at least one Indian resident as a Director on the Board of Directors.

Ques: Can a salaried individual be a director of a company?

Yes, a salaried individual can be a director of an organization if he is allowed by the employment agreement. Usually, employers do not have any issue if their employee becomes a director of a company.

Ques: What is known as Authorized Capital?

It includes maximum acceptable amount of share capital which can be issued to shareholders by a company. Authorized share capital can be changed by a company when it is needed from time to time. It depends on the on the need of the organization subject to approval of members or shareholders.

Ques: What is meant by Paid-up capital?

Paid-up share capital is called Issued share capital of the Organization. This is an amount of shares issued to the share holders by an organization.

Ques: What is known as Registered Office?

The registered office of an organization is the main place of a company to do business. This place is used for sending entire official correspondence.

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Ques: What is called MoA (Memorandum of Association)?

As par Section 2(56) of the Company Act, 2013, the term "Memorandum" denotes a company's memorandum of association. This is alerted from time to time following any past company law or of the Act. This is a charter document of an organization that includes essential details of the company.

Ques: What is known as Article of Association?

Article of Association are by-laws of an organization. This includes Rules and Regulation pursued by the organization. It incorporates duties, objectives and authorities of the Board of Director like voting rights, borrowing capacity, process to issue and transfer of shares.

Ques: Is it possible to enhance Paid-Up Capital and Authorized Capital after completing of incorporation procedure?

Yes, Paid-up capital and authorized capital can be enhanced after incorporation procedure.

Ques: Is it essential to install Nidhi Company Software?

No, this is not compulsory to obtain Nidhi Company Software to do finance business. If you want to run the business appropriately, then Nidhi Company software is compulsory. Main business of Nidhi Company is to take deposits and also lend money to the members. Due to this, typical calculations are needed to do interest calculation therefore it is suggested to use Nidhi Company Software for 100% accuracy and performance.

Ques: Are Nidhi Companies controlled by Reserve Bank of India?

No, the registration and regulation procedure of Nidhi Company is not controlled by core provisions of Reserve Bank of India.

Ques: How Nidhi Company Registration procedure is different from other NBFCs registration process?

RBI does not control Nidhi companies and its registration needs a smaller amount of capital. In case of NBFCs, the need of paid capital is 2 crore.

Ques: What is known as regulatory authority of Nidhi Company?

Registration and regulation of Nidhi Company is managed by Ministry of Corporate Affairs. According to the Provisions of Nidhi Rules, 2014, all the activities are completed.

Ques: What is meant by Nidhi Rules?

Nidhi Companies are not controlled by RBI. Therefore to make transparent and easy operations of Nidhi Company, Nidhi Rules 2014 has been introduced by Central Government. Governing principles for Nidhi Company operations are included in these rules.

Ques: From whom deposits can be taken by a Nidhi Company?

Once registration of Nidhi Company is completed, deposits can only be accepted from the registered members.

Ques: Who can be a member of Nidhi Company?

Following criteria are to be satisfied in order to be a member of Nidhi Company :

The member must be at least 18 years or more.

No trust or corporate body can become a member. Member should be an individual.

Ques: Is RBI approval is necessary to continue business after the registration of Nidhi Company?

Approval of RBI is not compulsory for them. Once registration of Nidhi Company is completed, business can be started.

Ques: Is Micro Finance Business conducted by Nidhi Company in India?

The term microfinance denotes small credit facility. This is well-known business entity in rural and semi-urban places. However RBI approval is compulsory to perform microfinance business. Any big NBFCs can do this.

Ques: Whether debt securities or preference shares can be issued by Nidhi Company?

No. Following securities cannot be issued by Nidhi Companies :

Debentures

Preference Shares

Other Debt Securities

Ques: Is there any limit of loan that a Nidhi Company can offer to its members?

In case of Nidhi Company, loan limit depends on the amount of deposits that it keeps. Specified limits are as follows :

Deposit Amount (Rs) Limit of Loan (Rs)
Less than 2 Crore 200000
2 Crore to 20 Crore 750000
20 Crore to 50 Crore 1200000
More than 50 Crore 1500000

Ques: Whether Nidhi Company Operation is allowed in two states?

Nidhi Company is not allowed to perform its operation outside the state where it is registered in.

Ques: What are the minimum needs when the registration of Nidhi Company is completed?

Once registration procedure of Nidhi Company is done, following needs are to be met within one year :

At least Rs 10 lakh should be maintained as net owned funds

Minimum 200 members should be registered

Out of entire unpaid deposits, 10% should be unencumbered term deposits

The ratio of net owned funds to deposit must be 1:20

Ques: What if post-incorporation needs are not satisfied after the completion of one year since when Nidhi Company Registration is completed?

A Nidhi Company may fail to meet the post-incorporation needs within one year. In this circumstance, it is suggested to do application for an extension with Regional Director in Form NDH-2.

Ques: Is it legitimate to advertise the activities of a Nidhi Company?

No, Nidhi Company is not allowed to advertise its activities. The main aim of Nidhi is to facilitate the habits of saving and thrift among the members. It prevents request for deposits to non-members through promotions.

Nidhi Company cannot remit any type of incentive or brokerage in order to promote grant of loan or mobilization of deposits to members.

Ques: Can a Nidhi Company buy securities of other company?

No, Nidhi Company cannot buy shares or securities of other company or institutions.

Ques: Can a current account be opened by a Nidhi Company with its members?

No, Nidhi Company cannot open a current account with the members.

Ques: Is it possible to acquire another company by a Nidhi Company?

No, Nidhi Company is not permitted to do that through buying its securities. It does not have power to access its management or modify the components of its management.

For such activity, prior approval of regional director is to be obtained after a special resolution is passed in general meeting.

Ques: Is there any task performed by a Nidhi Company except borrowing and lending permitted by law?

No, Nidhi Company is not allowed to perform any other type of task on its own name except borrowing and lending.

Ques: Is there any restriction to open another branch of Nidhi Company?

Yes, it cannot open another branch till a net profit after paying tax is earned consecutively for 3 years since when its registration is completed.

Ques: What is the number of branches opened by a Nidhi Company?

Once the criteria of earning profits for 3 consecutive years are fulfilled, 3 branches can be opened by a Nidhi Company. The branches must be in the same district where the registration of Nidhi Company is completed.

If more branches are to be opened outside or inside the district, it is compulsory to get previous permission from the regional director.

Ques: Whether unsecured loans can be issued by Nidhi Company?

No, only secured loans can be issued by Nidhi Company to its members.

Ques: What types of securities are needed by Nidhi Company to issue loans to its members?

Following securities are required by Nidhi Company to issue secured loans to its members :

Immovable Property

Gold, Silver and other valuable metals including jewelry

National saving certificate, government securities, fixed deposit receipts, insurance policies and others

Ques: Which loans cannot be issued by Nidhi Company?

Following kind of loans cannot be issued by Nidhi Company :

Vehicle / Asset finance

Personal Loans

Hire-purchase

Microfinance