- Directors Identification Number, i.e. DIN;
- PAN number of the proposed directors and members;
- Residential proof and address proof of the proposed directors and members;
- Photographs of the proposed directors and members;
- Identification Documents like Aadhar card;
- Registered business place proof such as lease or rent agreement;
- Ownership proof of the business place in case the premises are owned;
- NOC if required;
- MOA;
- AOA
Nidhi Company Registration
Packages Start @ 24,999/-
Nidhi Companies are registered Limited Companies involved in taking deposits and lending to their members. We assist to incorporate “NIDHI” Limited Company through the entire process of registration.
Nidhi Company Registration : an overview
A Nidhi company refers to a type of entity in the non-banking finance sector, recognized under Section 406 of the Companies Act, 2013. Their primary business is borrowing as well as lending funds between their members. They are also regarded as Benefit funds, permanent funds, Mutual benefits and Mutual Benefit Funds companies. The Ministry of Corporate Affairs governs these entities in India and reserves the right to issue directions related to deposit acceptance activities. The core object of these entities is to foster the habit of thrift and reserve funds amongst its serving members. The concept of Nidhi Company is quite popular in the southern region of India.
Important facts of NIDHI Companies:
- No RBI consent is required to form the Nidhi company in India. Therefore, it can be incorporated very easily.
- Nidhi Companies are incorporated as Public Companies.
- They must affix “Nidhi Limited” at the end of their name.
- Nidhi Companies’ undertakings are quite similar to NBFCs, and so they fall under the ambit of the Reserve Bank of India.
- The core objective of Nidhi Company essentially revolves around in-house lending and borrowing activities with no third-party intervention whatsoever.
- Nidhi Rules, 2014 permits Nidhi to facilitate locker facilities to its members on rent. The rental income should not surpass 20% of the Company’s overall income at any instance during the financial year.
Checklist to Register Nidhi Company
A Nidhi company is registered as a Public Limited Company and hence the minimum requirements to set it up is almost similar to that of a Public Limited Company, especially regarding the number of shareholders, directors, and name of the company. The only difference here relates to the primary business activity of the Nidhi company, which is fixed to accepting deposits and lending money to its members only. Given below is an elaborate list that must be checked before Nidhi Company registration in India.
Post incorporation of the Limited Company, within a period of one year from the commencement, the Nidhi Company must meet all of the following criteria:
Stepwise procedure for NIDHI company formation
For NIDHI Company formation, you must first incorporate your business as a public limited company and then apply for obtaining the NIDHI Company license within the prescribed time period under the NIDHI Rules, 2014. The detailed stepwise procedure for Nidhi Company registration has been mentioned below:
1: Obtain DSC and DIN from MCA certified agencies
The first step for all the directors is to obtain the DSC (Digital Signature Certificate) and DIN (Directors Identification Number) from the MCA certified agencies. The said agencies charge standard fees for rendering such services and seek basic documentation for the same. DSC is essentially used to authenticate the document electronically. It is by far the most secure and legit way of signing the e-form and others documents.
2: Name Approval
One needs to suggest the three best names for their Nidhi Company to the MCA, and one of these names will be accepted by the MCA. The name of Nidhi Company should be unique. Such approved name remains valid for a period of 20 days only.
3: Application for Registration
Once the name is approved, the directors shall file an application for registration with the Articles of Association (AOA) and Memorandum of Association (MOA).
4: Certificate of Incorporation
It takes around 15-20 days for the appropriate authority to grant a certificate for incorporation of a Nidhi Company. This certificate also contains the Company’s Company Identification Number (CIN).
Documents to Register NIDHI Company
A NIDHI company can obtain the NIDHI Company license only after getting incorporated as a NIDHI Limited Company in India. To register a NIDHI Limited Company, the applicant must file the all inclusive SPICe+ application along with the prescribed documents attached with it in the digital format. The list of all such documents required to incorporate a Public Limited company looking forward to obtain the NIDHI Company license, has been mentioned in the table below: