Nidhi Company Registration
An Ideal business structure for all “Small and Medium sized Enterprises” which are going for Partnership contact Us
About Nidhi Company
Soft skills will set you apart from the competition. Nidhi Companies in India are formed, governed, and regulated by Section 406 of the new Indian Companies Act of 2013, the Companies (Nidhi Companies) Rules of 2014, and the Chapter XXVI of the Companies Rules, 2014. Nidhi Company is a unique place to get started with your child’s education. See how your child can take advantage of our personalised learning plans, guest artists.. The objective of incorporating a Nidhi Company is to encourage savings amongst it’s members. And To fulfill this objective of cultivating the habit of saving amongst it’s members. Nidhi companies are allowed to take a deposit from and lend to the members only. In other words, the funds contributed to a Nidhi company come only from it’s members (shareholders) and are to be used only by the shareholders of the Nidhi Company. The name “Nidhi” in Nidhi Company means “treasure” and it originates from the Hindi vocabulary. Nidhi Company is a certain category of NBFC. Though not directly regulated by the RBI, still RBI has powers to issue directives for them related to their deposit acceptance activities. Moreover, because these “Nidhis” deal with their shareholder-members only, they have been exempted from the core provisions of the RBI Act and other directions applicable to NBFCs. Therefore, Nidhi Company is an ideal legal entity to take a deposit from and lend to a specific group of people.Key Features
Some points about the working of Nidhi Companies in India, as mentioned in Rule-6 of the “Nidhi Rules of 2014”, are significant to note:- It cannot carry any of the following kinds of transactions. Such as leasing finance, hire purchase finance, chit fund, insurance, or acquisition of securities issued by any corporation.
- It cannot accept deposits from or give loans to some external individual or corporation.
- A Nidhi Company is not empowered to issue preference shares, debentures, or some other debt instruments in any form.
- Companies Act 2013 and Nidhi Company Registration Rules 2014 act as the governing bodies, which regulate the functions and operations of a “Nidhi Company” in India.
- A “Nidhi Company” does not come under the purview of RBI. Therefore, it does not need any license from RBI to operate a loan business.
- It is not entitled to perform either a “vehicle finance business or microfinance business” in India.
- Within 12 months of registration, the number of members must be at least 200.
- A maximum interest rate of 20% p.a. (calculated by the reducing balance method) can be charged.
- The maximum rate of interest that can be offered on savings deposit account shall not exceed 2% above the rate offered by Nationalized Banks.
- Nidhi Company can accept FD, RD & savings and can earn an interest of 12.5% currently.
- The rate of interest that can be offered on Fixed and Recurring Deposits shall not exceed the maximum rate of interest prescribed by RBI for the NBFCs to be offered on deposits. The maximum limit for the rate of interest for NBFCs is also applicable to the Nidhi Company Registration.
- It’s operations must be limited to the district level for the first 3 Years. After completion of 3 years, 3 offices can be set up within the same district. For expansion out of the district, prior approval from the “Regulator Director” is required.
- It can only give loans against security. These securities may be Gold, Property, Fixed Deposits, Government Securities, or Life Insurance Certificates.
- Unencumbered deposits (Deposits which aren’t offered as securities for any purpose) should not be less than 10 % of outstanding deposits.
- Filing of Annual Accounts, Audit, and Tax Returns, in the proper format, is compulsory.
You can
start your Nidhi Company Registration at about Rs. 25,000 only.
Requirements for a “Nidhi Company Incorporation”
Given below are the essential conditions that must be met with for registering or operating a Nidhi Company.Requirement before Registration
- Minimum number of shareholders or members – 7
- Minimum number of Directors -3
- The minimum capital requirement is of Rs. 5 lakhs
Requirement before Registration
- NOF should be more than Rs. 10 lakhs.
- The ratio for NOF to Deposit should be more than 1:20.
- Unencumbered deposits should exceed 10 % of outstanding deposits.
Why Choose Leciel Consulting
Get the edge over others with a highly qualified team of professionals at Leciel Consulting. And get highly ranked professional services with full customer satisfaction. We assist with each step of a Nidhi company registration so that you can concentrate on your business.- We get companies registered anywhere in India
- Experts are available 24×7
- Fixed and Affordable Fee
- No Hidden Cost means No Last-Minute Surprises
- 20+ Experienced & Senior CAs & CS
- India’s Leading Online Portal for Company Formation
You can
start your Nidhi Company Registration at about Rs. 25,000 only.
Documents Required
Some points about the working of Nidhi Companies in India, as mentioned in Rule-6 of the “Nidhi Company Registration Rules of 2014”, are significant to note:- Passport Sized photographs of all the directors.
- ID proof of all the designated directors and shareholders. (PAN card and Passport are valid).
- Address proof of all the directors and members (Ration Card, Aadhaar Card, Passport, Voter ID, and Utility Bill – electricity/water/mobile).
- Address Proof of the Company. Make sure that the address proof is not older than 2 months.
- Copy of the Property papers (if the property is owned).
- NOC (No-Objection-Certificate) from the owner (if the property is rented).
You can
start your Nidhi Company at about Rs. 25,000 only.
Why Choose Leciel Consulting
Get the edge over others with a highly qualified team of professionals at Leciel Consulting. And get highly ranked professional services with full customer satisfaction. We assist with each step of a Nidhi company registration so that you can concentrate on your business.- We get companies registered anywhere in India
- Experts are available 24×7
- Fixed and Affordable Fee
- No Hidden Cost means No Last-Minute Surprises
- 20+ Experienced & Senior CAs & CS
- India’s Leading Online Portal for Company Formation
What is Included In Our Package?
DIN for 3 Directors
Digital Signature For 3 Directors
Name search & approval
MOA/AOA
Registration Fees
Company PAN Card
Frequently Asked Questions
What is Nidhi Company?
A Nidhi Company falls in the category of “Non-Banking Financial Companies (NBFCs)”, which
does not require any license from the Reserve Bank of India (RBI). It is formed for the sole
purpose of accepting deposits and lending loans to it’s members only. It works through it’s
members only.
Who can get Nidhi Company Registration?
The Nidhi Company Registration must be registered as a Public Limited Company, under the Companies Act,
2013. This essentially means that there are at least 3 Directors and 7 Shareholders.
Further, it’s MoA (Memorandum of Association) must state that the main objective of the
proposed company is to promote thriftiness and a habit of savings among it’s members.
What is the process of Nidhi Company Registration?
1. Apply for DIN & DSC,
2. Search a unique name in 3 options and get approved by ROC for 1,
3. Submit of MoA & AoA,
4. Certificate of Incorporation & CIN,
5. Take PAN, TAN & Bank Account.
.
What documents are required for Nidhi Company Registration?
• Director’s PAN Card copy (ID proof),
• Passport size photograph of Directors,
• Copy of address proof of Director,
• Copy of address proof of company. Property proof (If owned property), Rent agreement (in
case of rented property), electricity/water bill, etc. are valid,
• Landlord NOC (in case of rented property).
What is the limit on deposits in Nidhi Company?
A Nidhi company is not to accept deposits of more than 20 times of it’s Net Owned Funds
(NOF) as per it’s last audited financial statements.
What is the maximum limit of saving bank account?
The maximum balance in a savings account of one member of a Nidhi company should not be
more than Rs.1 lakh. The maximum rate of interest that can be paid on any deposits should
not be more than 2% above the rate of interest payable by nationalized banks, on such
deposits..
How many Directors are required in a Nidhi Company Registration ?
A Nidhi Company Registration can be incorporated with a minimum of 3 directors and a maximum of 15 Directors.
How do I choose the name of Nidhi Company?
You need to ensure that the name is not similar to any other company which is already
registered, whether it is a Private Limited, OPC, LLP or Public limited company. Also, make
sure that the name is not a registered trademark taken by someone under the IP Act of India.
Also, make sure that the name is not too generic. Otherwise, the ROC may reject it.
Moreover, try not to use abbreviations, adjectives.
And it should end with Nidhi Company Registration Limited.
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