A Nidhi company registration belongs to the class of non-banking finance sector firms. The Nidhi Company registration empowers lending money and encouraging savings between the members of the company. Nidhi Company is defined under Section 406 of Companies Act, 2013 and Companies (Nidhi Companies) Rules, 2014. The Nidhi Companies is governed/ruled by the Central Government, Reserve Bank of India (RBI) is empowered to give directions regarding the matters related to the acceptance of deposits.
Minimum paid up share capital required for Nidhi company registration is only five lakh rupees. Every Company must be registered as a Nidhi Company. Compulsorily shall have last words as 'Nidhi Limited' as parts of its name. In Nidhi Company Registration the company should have a minimum of 3 directors and 7 members. The first director of the company in Nidhi Company Registration can be a member of the company.
Every Nidhi Company within the period of one year from the commencement, shall have
Contact us for any related matter to Nidhi company registration.
The authorized signatories, as well as directors, shall obtain DSC to sign forms digitally. The application is made before digital signature authority agents.DIN (Director Identification Number ) should be obtained by the directors of the Nidgi company.
Do check your proposed company name availability on MCA. Form RUN is used to check the name availability and approval over MCA.
The object of the Nidhi Company shall be drafted clearly. MOA (Memorandum of Association) and AOA (Article of Association) are important documents of the company; hence an expert must formulate these documents. MOA and AOA are filed with the Registrar of the Company.
For the Nidhi company registration E-form SPICE 32 is required to be filled along with necessary documents. MOA and AOA are also attached as the attachment in e-Form SPICE-32.
On receipt of the application for Nidhi company registration, Registrar of the company shall scrutinize it minutely. If the application is complete and correct in all respect, the registrar shall issue the certificate of incorporation.
|Type of Deposit accepted||Term|
|Fixed Deposit||Minimum: 6 months
Maximum: 60 months
|Recurring Deposit||Minimum: 12 months
Maximum: 60 months
|Directors: (3 directors)||Company formation|
After DIN & DSC Name approval and rest incorporation Documents form filing.
The members of the Nidhi company can borrow at a cheaper rate from its own company at a cheaper rate as compared to the borrowing from banks. This is one of the major benefit to the members at in their difficult time or when they are in need.
One of the objectives of Nidhi company registration to encourage saving among the members of the company and thus to achieve mutual benefit the Nidhi Company registration lend and borrow money from its members only.
Borrowing and lending to known persons i.e its members, where the procedure is fixed, is much less complex than dealing with banks. A Nidhi Company registration allows its members to expose the potential of their money and gain a lower interest rate when they are in need of money themselves.
Nidhi companies follow the Nidhi Rules, 2014 issued by the center in respect of the activities and working. Regulations imposed on Nidhi's by Reserve Bank of India is limited.
Ministry of Corporate Affairs mandates the minimum capital requirement of Rs 5 Lakhs for Nidhis.
It is very easy to form a Nidhi company. Nidhi Companies are not required to obtain a license from RBI. Nidhi companies just have to incorporate themselves as a public company with the Ministry of Corporate Affairs.
Loans at a very lower rate of interest are given to the members of a Nidhi company.
Nidhi companies are formed, managed and provide details to their members only. The outsider is not allowed to intervene in the working of the Nidhis. Outsider is not allowed to deposit money or avail credit from Nidhi Companies.
Nidhi company registration fee is paid online. Following are the types of Nidhi Company registration fees in India.
The annual compliance for Nidhi company is important to avoid any penal consequences due to
non- compliance: The post incorporation annual compliance can be summed up by adherence to compliances pertaining to the following forms:
NDH-1 is the Return of Statutory Compliances. One should file NDH-1 along with the prescribed fees within 90 days from the closure of the first financial year after incorporation. However, the form needs certification by the practicing chartered accountant or company's secretary or cost and management accountant.
NDH-2 is the application for extension of time. Form NDH-2 is to be filed within 90 days from the closure of the financial year along with the prescribed fees. The Regional Director will then examine the application and pass orders within 30 days of the arrival of the application.
NDH-3 is known as the half yearly return. Form NDH-3 is to be filed within thirty days from the end of each half year with the prescribed fees. However, the form needs certification by the practicing chartered accountant or company's secretary or cost and management accountant.
The non –compliant company and every officer in default shall be held punishable with a fine up to Rs. 5000/-. In case he contravention continues then the company would be punishable with a penalty up to Rs. 500/- per day till the contravention continues.
Nidhi may open branches, only if it has earned net profits after tax continuously during the preceding three financial years. If a Nidhi proposes to open more than three branches within the district or any branch outside the district, it shall obtain the prior permission of the Regional Director. The intimation is to be given to the Registrar about the opening of every branch within thirty days of such opening.
No Nidhi shall open branches or collection centers or offices or deposit centers, or by whatever name called outside the State where its registered office is situated.
A Nidhi shall not accept deposits exceeding twenty times of its Net Owned Funds (NOF) as per its last audited financial statements.
The maximum balance in a savings deposit account should not exceed one lakh rupees and the rate of interest should not exceed 2% above the rate of interest payable on savings bank account by nationalized banks.
Every Nidhi shall issue equity shares of the nominal value of not less than ten rupees.
No service charge shall be levied for the issue of shares
Every Nidhi shall allot to each deposit holder at least a minimum of ten equity shares or shares equivalent to one hundred rupees
No, only secured loans can be provided.
Their core business is borrowing and lending money between their members.