Overview

A Nidhi Company is a type of Non-Banking Financial Company (NBFC) registered under the Companies Act, 2013, and regulated by the Ministry of Corporate Affairs (MCA) and Nidhi Rules, 2014. These companies are established with the objective of promoting savings and thrift among their members. A Nidhi Company must have at least 200 members and net-owned funds of INR 20 lakhs within 120 days of incorporation.

Nidhi Companies operate by accepting deposits and lending funds exclusively to their members. Though they are not directly regulated by the Reserve Bank of India (RBI), they must comply with certain deposit-related guidelines and annual reporting requirements.

Benefits of Nidhi Company Registration

Nidhi Company registration offers several advantages for business owners and shareholders, ensuring benefits for all stakeholders involved. Some key benefits include:

1. 1.      Simple Formation – The registration process for a Nidhi Company is straightforward and quick, making it a viable option for individuals looking to establish such an entity.

   2.      Exemption from RBI Compliance – Unlike traditional NBFCs, Nidhi Companies are not directly governed by RBI regulations, allowing them to operate with more flexibility in their financial activities.

   3.      Lower Risk – Since all transactions, including deposits and loans, occur between members, the financial risk is minimized.

   4.      Encouragement of Savings – These companies promote the habit of saving among members, helping them secure their financial future.

   5.      Cost-Effective Registration – Compared to other NBFCs, the registration process for a Nidhi Company is more affordable and less complex.

   6.      Self-Funded Operations – Nidhi Companies operate based on net-owned funds, reducing dependency on external funding sources and ensuring financial stability.

Documents Required for Nidhi Company Registration

To register a Nidhi Company in India, the following documents are required:

• 1.       Passport-size photographs of all promoters and members

  2.       PAN card of all promoters and members

  3.       Identity proof (Aadhar Card, Voter ID, Passport, or Driving License)

  4.       Address proof of all promoters and members (Utility bills or bank statements)

  5.       Address proof of business premises (Utility bill or rental agreement)

  6.       No Objection Certificate (NOC) from the property owner, if applicable

  7.       Property documents or rental agreement, if applicable

  8.       Director’s consent in Form DIR-2

  9.       Digital Signature Certificate (DSC) and Director Identification Number (DIN) of Directors

  10.    Specimen signatures of directors

  11.    Subscriber sheet duly signed

  12.    Company registration questionnaire

   

Registration Process

The Nidhi Company registration process consists of several steps:

1.      Application for DSC & DIN – Directors must obtain a Digital Signature Certificate (DSC) and apply for a Director Identification Number (DIN) from the Ministry of Corporate Affairs. Those who already possess a DIN can skip this step.

2.      Drafting of MOA & AOA – The Memorandum of Association (MOA) and Articles of Association (AOA) outline the purpose and operational framework of the company and must be filed with the Registrar of Companies (ROC).

3.      Name Approval – A unique name for the company must be approved by the MCA. The application for name approval is submitted through PART A of the SPICe+ form.

4.      Incorporation Application – Once the name is approved, an incorporation application is submitted through the MCA portal using the SPICe+ form. The form must be signed by at least one director and accompanied by required documents.

5.      Issuance of Certificate of Incorporation – After verification, the ROC issues a Certificate of Incorporation along with a Corporate Identification Number (CIN), confirming the company's legal existence.

6.      Application for Nidhi Company License – Within four months of incorporation, the company must apply for a Nidhi Company license using Form NDH-4. This ensures compliance with member count, net assets, and deposit requirements.

Registration Fees

The cost of registering a Nidhi Company varies based on multiple factors, including DSC, DIN, and GST registration. Generally, the registration fee ranges between INR 10,000 to 15,000, excluding professional fees

Why Choose Fastzeal for Nidhi Company Registration?

Fastzeal simplifies the Nidhi Company registration process by offering expert assistance in obtaining DSC, DIN, and all necessary approvals within a reasonable timeframe. Our experienced professionals ensure that all legal and regulatory requirements are met efficiently.

With Fastzeal, you get:

• 1.       A high client satisfaction rate

  2.       Expertise in company registrations

  3.       Seamless and hassle-free registration experience

  4.       Professional guidance throughout the process