in just 14,900/-
Keynotes on Nidhi Company Registration
Lowest fees across India
It takes 10 to 15 days for Nidhi Company Registration
Completely online service - No physical presence required.
Minimum capital to start Rs. 10,00,000/-
Instant access to Nidhi Software & Compliances
Nidhi Companies are registered under the Indian Companies Act of 2013 as Non-Banking Financial Companies (NBFC). The main business activity of the company is limited to its members only and it takes deposits from the members to create a pool of investments. As the company is considered as NBFC thus it does not come under direct RBI’s directions. The procedure of Nidhi Company registration is quite simple and it would not take long processing time.
Now, One Click Business Solutions Pvt Ltd can help you to register your Nidhi Company at cost-effective price in the fastest way. We will assist you in all possible ways including technical support, consultation and many more. We are aware the importance of nidhi company in NBFc business industry. A Nidhi company handles multiple functions through the help of its directors. We always keep update ourselves with latest legal and technical services and business development changes while dealing with any field.
We are offered you for quick registration of Nidhi company online in a few working days. Firstly, all the conditions that needs to be fulfilled for the registration. Eligibility checks, the minimum number of members, paid-up capital, etc are part of the basic condition for this. In the next process, you have to pay the Nidhi company registration fees against the application under MCA (Ministry of Corporate Affairs). Then, you will get the certificate once the applications details are get verified by the MCA. You can contact us for getting your Nidhi Company registered at a very cheap rate by the experts.
With the help of the One Click Business Solutions, you can easily start the Nidhi company registration process online completely. You may get confused after going through the government portal about the registration. Only a professional agency has the capacity to simplify the procedure of Nidhi company incorporations for you.
KYC of all the Directors and Shareholders
At least 3 directors and 7 members are needed at time of registration and themselves have to be the members and directors of company. Added to that, MCA will verify the detailed KYC of directors and directors is to obtain DIN (Directors Identification Number) from the MCA.
Digital Signature
The digital signature certificate (DSC) is the most essential requirement of Nidhi company registration. All the mentioned documents must have the self-attested digital signature below it.
Required details :
1. Email ID and Mobile number
2. PAN and Aadhaar
3. Passport Size Photo
Approval of Name
The unique name is very essential for the Nidhi Company and it should not be matched already registered companies. The name will include in the Nidhi company registration documents in RUN (Reserve Unique Name) format.
Documentation
After digital signature and name approval, we will draft all the directors' and shareholders' declarations sheets for their acceptance, articles of association, memorandum of association and subscription sheet.
Final Incorporation (MoA and AoA)
Once the name is approved, the applicant must have sent all the documents including the Articles of Association and Memorandum of Association to the SPICe portal in the prescribed form. After the given consent to the draft papers, COI is issued from the registrar's office.
PAN and TAN
Details of PAN and TAN will get verified in the Nidhi company registration procedure itself.
Financial inclusion is the core idea of establishing Nidhi Companies across India. The company will provide banking services to those people who do not have direct banking access. Therefore, the mechanism of nidhi operation must follow the rules of transparency through good corporate governance protocol. The members of the Nidhi Company will become financially independent if the company handles its operation dedicatedly. Thus, it is very much essential to consult with experts to get the Nidhi Company incorporation and Tax Compliance correct as per the rules.
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
Pan card is required for all the Directors and Shareholders of the company.
Driving License, Voter Id Card or Passport. Any one Id Proof is required for all the Directors and Shareholders of the company.
Latest Bank Statement not older than 2 months is required for all the Directors and Shareholders of the company.
Passport size photograph is required for all the Directors and Shareholders of the company.
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
Best Nidhi Company Registration Services in India
Get quick nidhi company registration online at cheapest price in Ahmednagar, Nanded, Nasik and get fast procedure with proper documents required for nidhi company registration in Kolkata West Bengal, Delhi , UP, Maharashtra, MP, Mumbai, Jaipur, Varanasi, Lucknow, Uttarakhand, Dehradun, Assam, Gujarat, Haryana, Pune, Punjab, Rajasthan, Bihar, Jharkhand, Habra, Murshidabad, Barasat, Nadia, Midnapore, South-North 24 Parganas. We have a highly experienced professionals team for nidhi limited company registration service and always keep ourselves updated to all latest technical updates, development and changes for it.
Nidhi companies are an attractive option for those looking for an alternative to banks or other financial institutions. They offer competitive interest rates on deposits and loans, making them an attractive proposition for both savers and borrowers alike. In order to start a Nidhi bank or finance company, you will need to obtain a license from the Reserve Bank of India (RBI). The process of online registration of nidhi company is easy to any other type of company in Kolkata-West Bengal Maharashtra-India.
How to Register a Nidhi Company
The regular business of Nidhi company is simple as it aspects deposit from its members and lends loans from that deposit to its members. It can only operate within a state and can open branches after operating for 3 years. For registering nidhi company, DSC and DIN must be acquired from an MCA-certified agency. You can get the Nidhi company licens easily with the help of some professional accounting firm like us. We, One Click Business Solution, will make you start your Nidhi company today with our best support system.
Requirements for minimum number of members, net owned fund etc. (As par Rule 5 of Nidhi Rules, 2014) :-
Within a period of 120 days from the date of incorporation, every nidhi shall ensure that it possesses :
a) Not less than 200 members
b) Net owned funds of Rs 20 lakhs or more
c) Unencumbered deposits of not less than 10% of the outstanding deposits as specified in Rule 14; and
d) The ratio of net owned fund to deposits of not more than 1:20
General restrictions or prohibitions (As par Rule 6 of Nidhi Rules, 2014) :-
Nidhi shall not :
a) Continue the business of hire purchase finance, chit fund, insurance, leasing finance or acquisition of securities allotted by any corporate entity;
b) Issue preference shares, debentures or any other debt instrument in any form or by any name;
c) Open a current account with its members;
d) Obtain another company by purchase of securities or manage the composition of the Board of Directors of any other company in any way whatsoever or enter into any preparation for the alteration of its management, unless it has approved a special resolution in its general meeting and also attained the Previous approval of the Regional Director having authority over such Nidhi;
e) Carry on any business other than the business of lending or borrowing in its
own name :
Given that Nidhis which have followed all the provisions of these rules
may offer locker facilities on rent to its members subject to the rental income
from such facilities not more than 20% of the gross income of the Nidhi at any point
of time during a financial year.
f) Take deposits from or lend to any individual, other than its members;
g) Assurance of any of the assets lodged by its members as security;
h) Accept deposits from or lend money to anybody corporate;
(i) Enter into any partnership arrangement in its lending or borrowing tasks;
j) Provide or cause to provide any advertisement in any form for accepting deposit :
Only if private circulation of the details of fixed deposits system among the members of
the Nidhi delivering the words "for private circulation to members only" shall not be
taken to be an advertisement for accepting deposits.
(k) Pay incentive or brokerage for mobilising deposits from members or for deployment of funds or for granting loans.
Branches (As par Rule 10 of Nidhi Rules, 2014) :-
District level operations are conducted for the first 3 years. Once the approval is obtained from Regulator Director, it is possible to make 3 branch offices in the district or outside the area.
Others :-
a) Share value shall not less than Rs.10
b) Maximum interest on loan of 20% p.a. can be charged under reducing balance method.
c) A Nidhi company can offer loan against securities. Securities include property, gold, LIC and FD.
d) Rate of Interest : Maximum 7.5% above NBFC rate for loans (reducing Balance method)
Savings Bank Interest shall not exceed 2% of the Bank Rate.
FD & RD Interest – As per RBI rate
e) Period of Deposits
| Particulars | Period |
| Fixed Deposits | Minimum 6 months maximum 60 months |
| Recurring Deposits | Minimum 12 months maximum 60 months |
No RBI Regulations –
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.
Restricted Paid up Capital Requirement -
The Ministry of Corporate Affairs has done away with the minimum Paid up capital need of Rs. 5 Lakhs for Nidhis.
Ease of formation -
They just have to incorporate themselves as a public company with the MCA, infuse the required amount of capital as per Nidhi Rules, 2014 and they are all set to go
Help in channelizing small savings –
The small savings of the members contribute to the funds of and avail credit from Nidhi companies.
The lower rate of credit -
The loans given to the members are at a lower rate of interest than the market rate.
No outsider intervention -
The outsider is not allowed to intervene in the working of the Nidhis
Limited Fund Raising -
The funds raised are limited in accordance with the number of members.
Limited availability of credit -
When the funds raise are restricted, the availability of credit is also limited.
Comes under RBI observation -
Even if there are no strict compliances forced upon the Nidhis by RBI, still their activities are administrated by the Reserve Bank particularly their deposit acceptance procedures.
NDH 4 -
Form to be filed for application for declaration as Nidhi Company and for updating status by Nidhi Company within 120 days from the date of company registration.
Business Commencement -
It is a Declaration to be given by the directors within 180 days of incorporation of company mentioning that the subscribers to the Memorandum of the company has paid the price of shares so accepted by them, with a verification of registered office address of the company. This declaration requires to be filed with proof of subscription money obtained by the company in form 20A with the Registrar of Companies.
Auditor Appointment -
Appointment of First Auditor - As per section 139(6) the first auditor of the company other than a government company shall be appointed by the Board within 30 days of Incorporation. In the case of Board's failure, an EGM (Extraordinary General Meeting) shall be done within 90 days to appoint the first auditor.
Appointment of Subsequent Auditor - Every company shall, at the first annual general meeting, appoint an individual or a firm as an auditor who shall hold office from the conclusion of that meeting till the end of its sixth annual general meeting and thereafter till the end of every sixth meeting.
NDH 1 –
Nidhi requires filing a return of statutory compliances in Form NDH 1 within 90 days from the end of the first financial year after its registration and where applicable, the second financial year, with such fee as stated in Companies (Registration Offices and Fees) Rules, 2014 with the Registrar accordingly certified by a chartered accountant or a company secretary or a cost accountant in practice.
Details required for NDH 1 :
a) Branch Details
b) Members Details
c) Deposit Details (Like FD, RD, Savings Deposit etc.)
d) Loan Details (Like loan against immovable property, loan against deposits etc.)
e) Details of Litigation etc.
f) Financial Summary: Ratio of Net Owned Fund to Deposits, Bank wise details of deposits)
NDH 2 –
If a Nidhi is not following clauses (a) or (d) of sub-rule (1), it shall within thirty days from the end of the first financial year, apply to the Regional Director in Form NDH 2 with fee prescribed in Companies (Registration Offices and Fees) Rules, 2014 to extend the time and the Regional Director may judge the application and pass orders within 30 days of receiving the application.
Only if the Regional Director may extend the period up to one year from the date of receipt of application.
NDH 3 –
A half yearly return along with above form is needed to be filled in Form NDH 3.
Details needed for NDH3 :
a) Number of member admitted
b) Number of member ceased
c) Calculation of Net Owned Funds
d) Details of Deposits
Profit & Loss and Balance Sheet –
The financial statements and other corresponding documents are needed to file in
Form AOC-4 within 30 days from the AGM (Annual General Meeting).
ROC Annual Returns –
This is essential for a Nidhi Company to complete filing annual return with Ministry of
Corporate Affairs through Form MGT-7 within 60 days from the AGM.
Income Tax Returns –
Annual returns must be filed by Nidhi Company by 30th September of the next financial year.
| Points | Nidhi Company Registration | NBFC Registration Procedure India (Micro Finance) | Society Registration process in India |
| Minimum Paid up Capital | Rs 10 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 14900 | 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 |
A Nidhi Company is approved under section 406 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.
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
Following conditions should be fulfilled within 120 days since when the company is commenced :
Minimum 200 shareholders are needed
At least Rs 20 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
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.
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.
No, Minor cannot be a director as DIN is essential. To obtain a DIN, an individual should be at least 18 years or above.
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.
Yes, a salaried individual can be a director of an organization if he is allowed by the employment agreement.
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 need of the organization subject to approval of members or shareholders.
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.
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.
.......................................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.
Articles 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.
Yes, Paid-up capital and authorized capital can be enhanced after incorporation procedure.
No, the registration and regulation procedure of Nidhi Company is not controlled by core provisions of Reserve Bank of India.
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.
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.
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.
Once registration of Nidhi Company is completed, deposits can only be accepted from the registered members.
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.
Approval of RBI is not compulsory for them. Once registration of Nidhi Company is completed, business can be started.
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.
No. Following securities cannot be issued by Nidhi Companies :
Debentures
Preference Shares
Other Debt Securities
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 |
Nidhi Company is not allowed to perform its operation outside the state where it is registered in.
Once registration procedure of Nidhi Company is done, following needs are to be met within 120 days :
At least Rs 20 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
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.
No, Nidhi Company cannot buy shares or securities of other company or institutions.
No, Nidhi Company cannot open a current account with the members.
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.
No, Nidhi Company is not allowed to perform any other type of task on its own name except borrowing and lending.
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.
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.
No, only secured loans can be issued by Nidhi Company 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
Following kind of loans cannot be issued by Nidhi Company :
Vehicle / Asset finance
Personal Loans
Hire-purchase
Microfinance
