Nidhi Company Registration
A Nidhi Company is a type of non-banking financial company (NBFC) registered under Section 406 of the Companies Act, 2013. It is formed with the objective of cultivating the habit of thrift and savings among its members and receiving deposits from them and lending to them for their mutual benefit. Nidhi companies are governed by the Ministry of Corporate Affairs (MCA) and are exempt from many RBI regulations. They are ideal for small savings and lending activities within a closed group of members.
Why Choose Nidhi Company?
- Easy Formation: Simple registration process under Companies Act, 2013
- Low Capital Requirement: Minimum paid-up capital of only ₹10 lakhs
- Member Benefits: Members can borrow from the company at lower interest rates
- Savings Culture: Promotes habit of thrift and savings among members
- RBI Exemption: Exempt from many RBI regulations applicable to NBFCs
- Tax Benefits: Eligible for certain tax benefits under Income Tax Act
- Limited Liability: Members have limited liability protection
- Separate Legal Entity: Distinct legal identity separate from its members
- Perpetual Existence: Continues to exist even after members change
- Closed Group: Operates within a closed group of members, reducing risk
Documents Required for Nidhi Company Registration
- PAN Card of all directors
- Aadhaar Card of all directors
- Passport size photographs of all directors
- Proof of identity (Voter ID, Passport, Driving License)
- Proof of address (Electricity bill, Rent agreement, etc.)
- DIN (Director Identification Number) for all directors
- DSC (Digital Signature Certificate) for all directors
- MOA (Memorandum of Association) with Nidhi objectives
- AOA (Articles of Association) with rules and regulations
- Registered office address proof
- NOC from landlord (if rented property)
- Declaration from directors (INC-9)
- Income tax PAN of the proposed company
- Proof of minimum capital (₹10 lakhs)
Our Nidhi Company Registration Process
- Consultation: Discuss your requirements with our experts
- DIN & DSC: Obtain DIN and Digital Signature for all directors
- Name Approval: Apply for and obtain unique company name from MCA
- Document Preparation: Prepare MOA, AOA, and other incorporation documents
- Incorporation Filing: File incorporation forms (INC-7, INC-22, DIR-3) with MCA
- Certificate of Incorporation: Receive incorporation certificate from MCA
- PAN & TAN Application: Apply for PAN and TAN for the company
- Bank Account Opening: Open bank account in company's name
- NDL Registration: Apply for Nidhi Limited registration
- Compliance Setup: Set up necessary compliance framework
Who Should Register as Nidhi Company?
- Small savings and lending groups
- Cooperative societies looking to convert to company structure
- Community-based financial organizations
- Employee welfare associations
- Trade associations with financial activities
- Professional associations with mutual benefit objectives
- Housing societies with lending activities
- Women's self-help groups
- Religious or charitable organizations with financial activities
- Educational institutions with student welfare funds
Nidhi Company Compliance Requirements
- Annual Filing: File Annual Return and Financial Statements annually
- ITR Filing: File Income Tax Return annually
- Statutory Audit: Mandatory audit by a practicing Chartered Accountant
- Board Meetings: Minimum 4 board meetings per year
- AGM: Annual General Meeting must be held annually
- DIR-3 KYC: Annual KYC for all directors
- NDL-1 Filing: File NDL-1 return annually
- Net Owned Funds: Maintain minimum net owned funds of ₹10 lakhs
- Member Ratio: Maintain ratio of net owned funds to deposits
- Lending Limits: Comply with lending limits as per Nidhi Rules
Minimum Requirements for Nidhi Company
- Minimum Directors: 3 directors (no maximum limit)
- Minimum Shareholders: 7 shareholders (no maximum limit)
- Minimum Capital: Minimum paid-up capital of ₹10 lakhs
- Net Owned Funds: Minimum net owned funds of ₹10 lakhs
- Registered Office: Must have a registered office in India
- Resident Director: At least one director must be resident in India
- Nidhi Objectives: Must have objectives of cultivating thrift and savings
- Member Limit: Minimum 200 members within 1 year of incorporation
Important Points to Note
- Closed Group: Can only deal with its members, not general public
- Deposit Limit: Cannot accept deposits from non-members
- Lending Limit: Can lend only to members, not to outsiders
- Interest Rate: Interest rates must be reasonable and approved by members
- NDL Registration: Must register as Nidhi Limited within 1 year of incorporation
- Member Growth: Must have minimum 200 members within 1 year
- Capital Maintenance: Must maintain minimum net owned funds of ₹10 lakhs
- Compliance: Must comply with Nidhi Rules, 2014
- No External Funding: Cannot raise funds from external sources
- Profit Distribution: Can distribute profits only to members
Important Note
New incorporation of Nidhi Company is currently on hold by the Respective ROC till further order.
