Documents Required
PAN CARD
AADHAR CARD
Nidhi Company
Nidhi Company registration including Incorporation kit and share certificates.
INR 34899 All Inclusive
INR 41899
17 % Off
Nidhi Company Registration
A Nidhi Company in India is a non-banking financial company (NBFC) that operates under the regulatory framework of the Nidhi Rules, 2014. It is governed by Section 406 of the Companies Act, 2013. Operating as a public limited company, its primary purpose is to encourage thrift and savings among its members while facilitating financial assistance through lending.
If you're interested in registering a Nidhi Company in India and need assistance, feel free to reach out to Leagel Edge Advice Care for guidance and support. We can help you navigate the registration process and ensure that your Nidhi Company complies with all the necessary regulations. Get started on your journey towards establishing a Nidhi Company today!
What is Nidhi Company?A Nidhi Company is a company that primarily deals with managing deposits from and providing loans to its members, who are also shareholders. The main purpose of a Nidhi Company is to promote thrift and savings among its members while offering financial assistance through lending.
Nidhi Companies in India have specific exemptions and relaxed regulations when it comes to their annual compliance requirements and tax assessments, making them a unique financial institution designed to benefit their members mutually.
The legal framework governing Nidhi Companies in India consists of Section 406 of the Companies Act, 2013, the Companies (Nidhi Companies) Rules of 2014, and Chapter XXVI of the Companies Rules, 2014.
The Purpose and Nature of Nidhi Companies
Nidhi Companies serve a distinct purpose in the Indian financial landscape, primarily focused on promoting savings among their members. These companies are unique in that they can accept deposits from and offer loans exclusively to their members. The term "Nidhi" in Nidhi Company, derived from Hindi, signifies "treasure."
Nidhi Companies fall within the category of Non-Banking Financial Companies (NBFCs). While they do not fall under direct regulation by the Reserve Bank of India (RBI), the RBI holds the authority to issue directives regarding their deposit acceptance activities.
Nidhi Companies fall within the category of Non-Banking Financial Companies (NBFCs). While they do not fall under direct regulation by the Reserve Bank of India (RBI), the RBI holds the authority to issue directives regarding their deposit acceptance activities.
What sets Nidhi Companies apart is their exclusive engagement with their members, who are also shareholders. This exclusive relationship grants them exemptions from certain core provisions of the RBI Act and other regulatory guidelines that apply to traditional NBFCs. As a result, a Nidhi Company is a legally sound entity for accepting deposits and providing loans exclusively to a specific group of members, making it a unique financial institution in India.
Benefits of Nidhi CompanyRegistering a company as a Nidhi in India offers a range of advantages that extend beyond the primary objective of fostering savings among members. Here are some key benefits:
Restrictions on Nidhi Companies
Nidhi companies have certain rules they must follow to keep their focus on serving their members. They are not allowed to:
Documents Required for Nidhi Company Registration in India
To register a Nidhi Company in India, you need to provide the following essential documents:
Nidhi Company Incorporation Requirements
To establish and operate as a Nidhi Company in India, certain prerequisites must be met and categorized into requirements before and after registration.
Requirements before Registration:
Requirements After Registration
Nidhi Company Registration Procedure
Incorporating a Nidhi Company in India involves several key steps, including legal measures in case of member defaults. Here's a step-by-step guide to the registration process:
Directors of the Nidhi Company must apply for Director’s Identification Number (DIN) and acquire a Digital Signature Certificate (DSC). DIN is issued by the Ministry of Corporate Affairs (MCA), while DSC is essential for all e-filing processes. Directors with pre-existing DIN and DSC can bypass this step.
Draft the Memorandum of Association (MoA) and Articles of Association (AoA), specifying the primary purpose of establishing the Nidhi company. These documents, along with a subscription statement, need to be filed with the Registrar of Companies (ROC).
Propose three preferred names for the Nidhi Company to the MCA. The MCA will choose one name for approval. The selected name must be unique and not currently in use. Once approved, it remains valid for 20 days.
After securing name approval, directors must submit an application for registration. This application includes the submission of the Articles of Association (AOA) and Memorandum of Association (MOA).
Typically, it takes 15-20 days for the relevant authority to issue the Certificate of Incorporation for the Nidhi Company. This certificate also provides the unique Company Identification Number (CIN) for the company.
Apply for the Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN). Subsequently, open a bank account for the Nidhi Company by submitting the Certificate of Incorporation, MoA, AoA, and PAN
Compliance for Nidhi Company
Nidhi Companies must adhere to various compliance measures for smooth operations and regulatory compliance. These include:
Seamless Nidhi Company Registration with Leagel Edge Advice Care
Leagel Edge Advice Care is your trusted partner in simplifying the Nidhi Company registration process. With our expert team, we provide end-to-end assistance in obtaining your Nidhi Company registration efficiently and in compliance with all legal requirements. From applying for DIN and DSC to handling the documentation, name approval process, and even the post-registration formalities, our comprehensive services ensure a hassle-free registration experience. Let Leagel Edge Advice Care guide you through the intricacies of Nidhi Company registration so you can focus on promoting thrift and mutual benefit among your members.
Proprietorship vs Limited Liability Partnership (LLP) vs Company
| Features | Proprietorship | Partnership | LLP | Company |
|---|---|---|---|---|
| Definition | Unregistered type of business entity managed by one single person |
A formal agreement between two or more parties to manage and operate a business |
A Limited Liability Partnership is a hybrid combination having features similar to a partnership firm and liabilities similar to a company. |
Registered type of entity with limited liability to the owners and shareholders |
| Ownership | Sole Ownership |
Min 2 Partners Max 50 Partners |
Min 2 Directors
Min 2 Shareholders
Max 15 Directors
Max 200 Shareholders
For One Person Company
1 Director
1 Nominee Director
|
|
| Registration Time | 7-9 working days |
|||
| Promoter Liability | Unlimited Liability |
Limited Liability |
||
| Documentation | MSME GST Registration |
Partnership Deed
|
LLP Deed Incorporation Certificate |
MOA
AOA
1 Incorporation Certificate
|
| Governance | - |
Under Partnership Act |
LLP Act, 2008 |
Under Companies Act,2013 |
| Transferability | Non Transferable |
Transferable if registered under ROF |
Transferable |
|
| Compliance Requirements | Income tax filing if turnover is more than Rs.2.5 lakhs |
ITR 5 |
Form 11
Form 8
ITR
|
ITR 6
MCA filing
Auditor'sappointment
Know More
|
Documents Required For Nidhi Company
Recent Utility Bill
Business Place
Documents Required for LLP Registration 11
Documents Required for Trademark Registration 6
Documents Required for GST Registration 10
Documents Required for Partnership Firm Registration< 5
Documents Required for Company Registration 13
Nidhi Company FAQ's
How many people are required to register a Nidhi Company?
A minimum of 3 directors and 7 shareholders are required to register a Nidhi company in India.
What are the requirements to be a Director?
The Director needs to be over 18 years of age and must be a natural person.
Is an office required to start a Nidhi Company?
An address in India where the registered office of the Company will be situated is required. The premises can be commercial/industrial/residential where communication from the MCA will be received.
Do I have to be present in-person to incorporate a Nidhi Company?
No, you don’t have to be present at our office or appear at any office for the registration of a Nidhi Company.
What is a Digital Signature Certificate?
A Digital Signature establishes the identity of the sender or signee electronically while filing documents through the Internet. The Ministry of Corporate Affairs (MCA) mandates that the Directors sign some of the application documents using their Digital Signature.
What are the documents required for Nidhi Company registration?
Identity proof and address proof are mandatory for all the proposed Directors of the Nidhi Company. PAN Card is mandatory for Indian Nationals. In addition, the landlord of the registered office premises must provide a No Objection Certificate for having the registered office in his/her premises and must submit his/her identity proof and address proof.
Leagel Edge Advice Care.com can incorporate a Nidhi Company for 20-30 days. The time taken for registration will depend on the submission of relevant documents by the client and the speed of Government Approvals. To ensure speedy registration, please choose a unique name for your Company and ensure you have all the required documents prior to starting the registration process.
How long is the registration of the Company valid?Once a Nidhi Company is incorporated, it will be active and in existence as long as the annual compliances are met with regularly. A Nidhi Company must have a minimum of 200 shareholders and comply with other criteria within one year of incorporation. In case, annual compliances are not complied with, the Nidhi Company will be asked to refund the deposits.
What is DIN?Director Identification Number is a unique identification number assigned to all existing and proposed Directors of a Company. It is mandatory for all present or proposed Directors to have a Director Identification Number. Director Identification Number never expires and a person can have only one Director Identification Number.
Zero Late Fee Platform
Many small businesses pay lakhs in penalty every year to the Government for late filing various statutory returns. Such penalty or late fee paid is not tax deductible and is a drain on profitability. At Leagel Edge Advice Care, our mission is to provide the most affordable services to our customers and help them avoid all late fee.To achieve our mission - we have built enterprise grade technology to help you proactively know the upcoming compliance and avoid penalty.Checkout our compliance services below, talk to an Advisor and stop paying unwanted late fees..
Manage Compliance for Proprietorship From Rs 4899
Manage Compliance for Partnership From Rs 15899
Manage Compliance for Limited Liability Partnership From Rs 15899
Manage Compliance for Private Limited Company From Rs 19899
Related Business Registrations
In addition to registration or incorporation, a business may require other registrations depending on the business activity undertaken. Talk to an Advisor to find out registrations your business may require post registration.
