Complete solution for starting a Nidhi Company, including incorporation of limited company, issue of shares and obtaining Nidhi status. GMTrix® offers Nidhi company incorporation from Rs. 35999.00/- all inclusive fee.
Eligibility
To incorporate a Nidhi Company a minimum of three persons are required over the age of 18 years with atleast one person being an Indian citizen and resident.
Nidhi Company Registration
“Nidhi” is a Hindi word, which means finance or fund. Nidhi means a company which has been incorporated with the object of developing the habit of thrift and reserve funds amongst its members and also receiving deposits and lending to its members only for their mutual benefit.
Nidhi Company is a company registered under the Companies Act, 2013, which has a sole objective of cultivating the habit of thrift and savings amongst its members. Nidhi companies are allowed to take deposit from its members and lend to its members only. Therefore, the funds contributed for a Nidhi company are only from its members (shareholders) and used only by the shareholders of the Nidhi Company.
Nidhi company registration requires minimum 3 members. All the Nidhi company’s incorporated shall have the last word as “Nidhi Limited” as part of its name. Nidhi company is easy and economical to register.
Nidhi company is a class of NBFCs and RBI is empowered to issue directions to them in matters relating to their deposit acceptance activities. However, in recognition of the fact that these Nidhis deal with their shareholder-members only, RBI has exempted the notified Nidhis from the core provisions of the RBI Act and other directions applicable to NBFCs. Therefore, Nidhi Company is an ideal entity to take deposit from and lend to a specific group of people.
Choose Nidhi Company because :
No External Involvement in Management- Helpful for Lower and Middle Classes
- Low Rates of Interest
- Secured Investments
- Minimum Documentation and Formalities
Documents Required for Nidhi Company Registration
- Copy of Director’s PAN Card
- Passport size photograph of Directors
- Copy of Aadhaar Card/ Voter identity card of directors
- Copy of Rent agreement(If rented property)
- Electricity/ Water bill (Business Place)
- Copy of Property papers (If owned property)
- Landlord NOC (Format will be provided)
Minimum Requirements for Incorporation
Before Incorporation
- Minimum 7 shareholders
- Minimum 3 Directors
- Minimum Capital of Rs. 10 lacs
- DIN for all directors
After Incorporation
- Minimum number of 200 Shareholders
- Net owned Fund shall not be less than Rs. 10 Lacs
- Unencumbered deposits of not less than 10% of the outstanding deposits
- Net owned funds to deposits ratio should be more than 1:20
What is a Nidhi Company
Nidhi Company is a Non-Banking Financial Company (NBFC) which does not require any license from the RBI. The Nidhi Company is very easy and cheap to form to register. Anybody can register a Nidhi Company; there is no background check, nor are there did any prescribed qualifications for its owners.Nidhi Companies cannot deal with anybody other than its members.
Concerns Related to Nidhi Company
- Highly dependent on the integrity, honestyand loyalty of workers and members.
- Lacklustre sales promotion.
- It caters to only the needs of small and medium-income groups.
- Nidhi Companies are usually managed by amateurs and professional managers cannot be hired due to lack of funds.
- People may be afraid to deposit funds because Nidhi Companies don’t require a licence from the RBI.
Advantages of Nidhi Company Registration
- No Minimum Share Capital Requirement
- Easy Transfer of Ownership
- Tax Benefits
- No need to use “Nidhi” or “Limited” title
- No Stamp Duty
- Clear Objectives for easy donations and loans
- Easy to Manage
- Exemptions and Privileges under Companies Act, 2013
- Relaxation in Compliances
Company Registration Process
Digital Signature Certificate
1 Working Day
DSC is an electronic online signature issued by licensed certifying authorities. All the proposed directors of the company required to apply for the digital signature (DSC) which is necessary for digitally signing the electronic incorporation documents. DSC can be obtained either using supporting documents or Aadhar eKYC based authentication (supporting documents are not required in this case).
Director Identification Number
1 Working Day
ODIN or DPIN, i.e. directors PIN is a unique eight-digit identification number which is a mandatory requirement for existing as well as proposed directors of the company to maintain the director's information in a database. MCA allots a DIN to every director of the company with a lifetime validity without which one cannot be a director.
Name Approval
Upto 5 Working Days
Once we obtain the DIN and DSC of the directors, a list of minimum one or maximum 4 proposed names of the company in preferential order will be submitted to MCA for approval. Our representative will conduct a prior search for your name availability. Ideally, the name should be unique, suggestive of the business and end with the words 'Nidhi Limited' in order to avoid the rejection. We get your company name approved subject to availability and naming guidelines.
MOA & AOA Submission
Upto 2 Working Days
Once the name is approved, one needs to draft Memorandum of association and Articles of Associate. But the object of the Nidhi company must always be a charitable object. Both MOA and AOA are filed with the MCA with the subscription statement.
Incorporation Documents
Upto 8 Working Days
After taking name approval, we draft a Memorandum of association and Articles of association for your company. All the incorporation documents need to be submitted with the prescribed e-form SPICe 32 along with the AOA, MOA and subscription statement. Once all the documents are duly verified and approved by the government, the certificate of incorporation is emailed to your id. Simultaneously, we will apply for PAN and TAN of your company.