Nidhi Company Registration2019-04-06T12:34:24+05:30
Private Limited Company

Nidhi Company Registration
Starting at INR 24,999 onwards

What is a Nidhi Company?

Nidhi is a hindi word meaning “treasure”, Nidhi companies were developed for encouraging the practice of savings among group of people and lending funds among them for mutual benefit. Companies having such objects are been legally recognized by Companies Act, 2013 under section 406 and are regulated by Ministry of Corporate Affairs. A Nidhi Registration needs a minimum of seven shareholders and three directors. This makes Nidhi Registration the most suitable kind of Company Registration for the objectives of lending and accepting deposits. Apart from the ease of registration and lower cost involved Nidhi Companies don’t require Reserve Bank of India License to begin with. Nidhi Companies by nature are incorporated as Public Companies under the Companies Act 2013. Nidhi Company can only deal with the objectives within the members and are not allowed to accept deposit or lend to anyone other than its members. Every Nidhi company is required to have at least two hundred members by the end of one year from its commencement.

Why Register a Nidhi Company?

No RBI License Required

A Nidhi Limited company is not required to get prior approval from Reserve Bank of India to start and conduct business activities. For other form of business organisations to carry on financial activities RBI approval is must but Nidhi Company is exempted from the same.

Lower Compliance

A Nidhi Limited has simple documentation, simple registration process, takes lesser time for Incorporation and Cost friendly to incorporate and maintain as. A Nidhi Company also has lower compliance’s as they are not required to register with Reserve Bank Of India.

Separate Legal Entity

A Nidhi Limited is a separate legal entity as distinct from its members, and is separate at law from its shareholders,directors, promoters etc. A Nidhi Limited Company has the capacity to own properties, incur debts and exercise a number of legal rights.

Limited Liability

Limited Liability protects the personal assets of founders, partners, directors or shareholders of the company in case of debt or insolvency. The liability of the members in respect of the company’s debts is limited only till their investment of capital in the company and not their personal assets.

Perpetual Succession

A Nidhi Limited Company exercise “Perpetual Succession”; which means that the company’s life is not determined by the longevity of its members, shareholders, promoters, directors, employees or anyone else. If a shareholder dies, or hypothetically, all the shareholders of Nidhi Limited Company dies or resigns , only their shares in the company will be transferred to new people.

Borrowing Capacity

A Nidhi Limited Company can avail better scope for borrowing funds. Banking institutions and Venture Capital Firms prefer to render financial assistance to a Nidhi Limited company rather than partnership firms, proprietary concerns or any other form of unregistered business. Even a newly formed Nidhi Limited Company can reap the benefits of easy borrowing.

Transferability of Shares

Shares of a Nidhi Limited Company are easily transferable by a shareholder to any other person. The Transfer process involves filing and signing a share transfer form and handing over the buyer of the shares along with share certificate.

Suing Capacity

A Nidhi Limited Company can file legal proceedings or a suit in a court of law exactly like an individual person. A Nidhi Limited Company being an independent legal entity can sue and also be sued in its own name.

What are the Requirements for a Nidhi Company Registration?

MEMBERS

For a Nidhi Company Registration the company must have at least seven members and there is no limit of maximum number of members Nidhi Company can have.

DIRECTORS

For a Nidhi Registration the company must have at least three directors and a minimum of one director should be an Indian. The maximum number of directors a Nidhi Company can register is 15.

CAPITAL REQUIREMENTS

To incorporate a Nidhi Company it must be incorporated with a  minimum paid-up equity capital of Five Lakhs. Nidhi companies are not allowed to issue Preference Shares.

OBJECTIVES

A Nidhi Company can carry on the objectives of lending, accepting deposits and to promote the habit of savings only, and can only deal with such objectives with its members.

NAME

A Nidhi Company is required to have a suffix as Nidhi Limited in its name, since Nidhi Company is by nature a Public Limited Company registered under the Companies Act 2013.

REGISTERED OFFICE

The registered office of the Nidhi Company must be in India. It need not to be an owned space as even a rented space can be used as long as a NoC is obtained from the owner of the property.

What are the documents required for a Nidhi Registration?

llp photo

Passport Sized Photo
Passport sized Photos of All Directors

ID Proof

Identity proof
Aadhar Card/Driving License/Voter ID Card/Passport

Address Proof

Address Proof
Latest Bank Statement/Utility Bill

Information

Director Information
KYC Details Of Directors

Document

Business Address Proof
Latest Bank Statement/Utility Bill

Certificate

No Objection Certificate
NOC From the Property Owner

Certificate

Rental Agreement
Rental Deed of the Business Premises

Proof

Property Documents
For self owned Property

How much Time does a Nidhi Registration takes?

Registration

Name Reservation Application

One Day

Registration

Acquire Digital Signature Certificate

One Day

Documentation

Drafting Incorp Documents

Two – Three Days

Ok

Filing for Incorporation INC32

One Day

Ok

Receiving Certificate Of Incorporation

Fifteen Days

What are the Deliverables?

Certificate

Certificate Of Incorporation

A Certificate of Incorporation is a legal document issued by the Ministry of Corporate Affairs and Government of India after the Company Registration. It serves as the proof of legal existence of Nidhi Limited Company.

Identification Number

Directors Identification Number

DIN is a unique Director Identification Number allotted by the Central Government to any individual intending to become a Director a company.It is an 8-digit unique identification number which has validity for lifetime.

Digital Signature

Digital Signature

A Digital Signature (DSC) is an equivalent of a handwritten signature or stamped seal, but is way more secured and safe to use. You would receive a class 2 Digital Signature for all the Directors of the Company with a validity of 2 Years.

Business Registration Documents

MOA/AOA

Memorandum of Association consists of the objectives of the organization. Articles of Association are reports that contains the purpose, obligations and responsibilities of its owners, directors, promoters or shareholders.

Business Registration Documents

Company PAN

Registered businesses like Pvt Ltd Company needs to obtain a PAN Card in the name of the registered business. The PAN number needs to be quoted in every financial transaction of the business.

Business Registration Documents

Company TAN

Tax Deduction Account Number is a 10 -digit alpha-numeric number issued by the Income-tax Department. TAN is to be obtained by all persons who are responsible for deducting tax at source (TDS) or who are required to collect tax at source (TCS).

How to select the Perfect Name for your Nidhi Registration?

The name of your company represents the ideologies, vision and working of the company and its founders. Hence choosing the right name for your company is highly essential as you don’t want to be stuck with a wrong or bad name that doesn’t go with the product/service and vision of your company. The name must be relevant, attractive and meaningful. However there are few other factors that should be kept in consideration while choosing the name for your business. Here are some crucial points to remember.

SHORT & SIMPLE

Your Company name should be short simple and quick to remember. It should also be easy to pronounce. You don’t want to have a name which is misspelt every time someone looks for it.

UNIQUE

The chosen name mustn’t be the same or identical to an already existing company or a trademark in any manner. Names identical to already existing companies are usually rejected by the MCA during Company Registration process.

MEANINGFUL

Your Company name should be short simple and quick to remember. It should also be easy to pronounce. You don’t want to have a name which is misspelt every time someone looks for it.

NO ILLEGAL/OFFENSIVE NAMES

The name of the company should be as per the law. It can’t be abusive, unethical, restricted (click here to see) or against any customs, beliefs, religion, ethnicity or country.

ADD BUSINESS TYPE

Adding the type of business at the end of the desired company name helps people to figure out the products/services of your company and establishes a brand image in the relevant domain.

WITH SUFFIX

The name of the company must end with the suffix “Nidhi Limited” in a case of a Nidhi company, since its by nature a Public Limited Company registered under Companies Act 2013.

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Frequently asked Questions

Yes Nidhi Companies have a cap on Interest can can pay on the deposits.

No, a Nidhi company can only provide loans and accept deposit from members.

No, you need to be physically present for the incorporation of your company. You can send your documents to us via Email.

For a Nidhi Limited Company registration, it takes a around 35-55 working days.

SPICe form is a new consolidated form introduced by MCA simplifying the incorporation and taking the process to fast track mode incorporating a company in less then 10 days if approved on time.

Yes, a Nidhi limited company has eternal existence until its liquidation or closure.

Registrar of Companies (ROC) is an office vested with the primary duty of registering companies and LLPs floated in the respective states and the Union Territories and ensuring that such companies and LLPs comply with statutory requirements and regulations. These offices function as registry of records, relating to the companies registered with them, which are available for inspection by members of public on payment of the prescribed fee.

Any individual qualifies as per the Contract Act 1872, can be a member in a Nidhi Limited Company

No, there is no requirement of minimum turnover to start a Nidhi Limited Company

No, there is no specific requirement to have an office (commercial ) space for registering a Private Limited Company.

Yes, there is no restriction on registering a Nidhi Limited Company with their home address. However, a NoC is required from the owner of the property to register the address.

Yes, NRIs and Foreign nationals can become directors in a Nidhi Limited Company. But as per the regulations, at least one director of the company should be an Indian resident.

Yes, any person above the age of 18 can be made a director of the company provide s/he is qualifies as per the Companies Act,2013.

After Incorporation, a Nidhi company is treated as a separate legal entity in front of Law. It is separate at law from its shareholders, directors, members, promoters etc. and as such is conferred with rights and is subject to certain duties and obligations. By virtue of this, a company is able to hold the assets in its own name. In addition, the owners are not liable for any actions taken by the company unless caused with fraudulent intention with involvement of owners. Due to this the company is distinguished from its owners and management.

No taxes or duties (direct or indirect) are not automatically applicable to a Nidhi Limited Company. These taxes will be applicable as soon as the respective limits under the various tax acts are exceeded.

The amount of share capital has to be deposited in the bank account of the company at any time only after Incorporation within a period of 30 days.

Capital is the owner’s investment in the company.

Yes, registered address of the company can be changed at any time after the incorporation of the company by following few simple steps.

Yes, every company has to maintain its books of accounts and get it audited by a Chartered Accounted (CA) as per the regulations under The Companies Act, 2013, failing both the company and its directors shall be subjected to penalty and disqualification.

Yes Nidhi Companies have a cap on Interest can can collect on the Loans.

No, Nidhi Companies dont need RBI Approval to start their business.

Following documents relating to Director:

  • Passport sized photo
  • PAN Card
  • ID proof- Anyone (Voter ID/Aadhar Card/Driving License/Passport)
  • Address Proof- Anyone(Electricity Bill/Telephone Bill/Mobile Bill/Bank Statement)

For are the documents regarding Registered Office Address

  • In case of Rented Building: Rent agreement along with latest rent receipt with NOC from owner
  • In case Leased Building: Lease deed with NOC from owner
  • In case Owned: House tax receipts
  • Electricity bill

No, A Nidhi Company can not carry on Asset financing business.

Following documents relating to Director:

  • Passport sized photo
  • PAN Card
  • ID proof- Anyone (Voter ID/Aadhar Card/Driving License/Passport)
  • Address Proof- Anyone(Electricity Bill/Telephone Bill/Mobile Bill/Bank Statement)

For are the documents regarding Registered Office Address

  • In case of Rented Building: Rent agreement along with latest rent receipt with NOC from owner
  • In case Leased Building: Lease deed with NOC from owner
  • In case Owned: House tax receipts
  • Electricity bill

DIN (Directors Identification Number) is a unique Identification Number allotted to an individual who is appointed as a director of a Company by the Ministry of Corporate Affairs (MCA)

No you don’t need to deposit the capital amount while registration of the company.

DSC stands for Digital Signature Certificate. This is a secure and authentic way to submit a document electronically. As such, all filings done by the companies/LLPs with MCA/ROC are required to be filed using Digital Signatures by the person authorised to sign the documents.

MOA contains the objectives and powers of the company and AOA provide the regulations by which those objectives and powers are to be conveyed into impact.

Yes, for incorporating a Nidhi Limited Company a minimum of three directors are mandatory.

Any individual who has attained age of 18 years can be a director of a Nidhi Limited Company subject to not being disqualified under The Companies Act, 2013.

To register a Nidhi Company we need to have a minimum paid-up capital of 5 Lakhs.

Yes, there is no restriction for a salaried person to be the director of a Nidhi Limited Company.

Please click on this link to get a detailed information about the selection of the name for your company.

No, you need not visit ROC office for the incorporation of your company. You have to file the specified forms along with the required documents digitally.

A company name can be obtained in an easy manner by the newly introduced RUN (Reserve Unique Name) Web-Form In India. RUN Is a web service for reserving a name for a new company or for a change of name for an existing company

Nidhi Company is required to have a minimum of seven shareholders to begin with.

There is no restrictions for number of members a Nidhi Company can have.

Reserve Unique Name (RUN Form),  SPICe INC- 32 Forms for faster company incorporation, e-MoA(INC-33) and e-AoA (INC-34) are also to be filed for a Nidhi Limited Registration.

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