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Nidhi Company Registration

Nidhi is a Hindi word that means Finance or Fund. Nidhi Company are an Unlisted Public Limited Company and its sole objective is to cultivate the habit of thrift and savings amongst its members, receiving deposits from, and lending to, its members only, for their mutual benefit, and which complies with such rules as are prescribed by the Central Government for regulation of such class of companies.

If you want to start your business in the Finance sector then it is best option for you as it has a similar feature to NBFC and may even upgrade your company at a later stage into NBFC and then into a BANK.

If you want to register your NIDHI COMPANY than VS IPR & LEGAL ADVISORS will help you in Registration and in all the Compliance after Registration

Analysis on Nidhi Company

It should have a Minimum Capital of Rs 5 lakhs.

It should have 7 members Minimum.

It should have 3 Directors Minimum.

It shall have the words ‘Nidhi Limited‘ at the end of the name of the company.

Requirements within one year of incorporation

  • The minimum number of members should be 200
  • Ratio of net owned funds to deposit shall be not more than 1:45
  • Unencumbered term deposits of not less than 10% of the outstanding deposits as specified in Rule 14.
  • Net owned funds shall be Rs.10,00,000/- or more (Net owned funds means the aggregate of paid-up equity share capital and free reserved as reduced by the accumulated and intangible assets appearing in the last audited balance sheet)

General Restrictions or Probhitions

  • NO NIDHI Company can carry on the business of Chit Fund, Hire Purchase Finance, Leasing Finance, Insurance or Acquisition of Securities issued by any Body-corporate; issue preference shares, debentures or any other debt  instrument by any name or in any form whatsoever; Open any current account with its members; Acquire another company by purchase of securities or control the composition of the Board of Directors of any other company in any manner whatsoever or enter into any arrangement for the change of its management, unless it has passed a special resolution in its general meeting and also obtained the previous approval of the Regional Director having jurisdiction over such Nidhi. Carry on any business other than the business of borrowing or lending in its own name. Issue or cause to be issued any Advertisement in any form for soliciting deposit. Private circulation of the details of fixed deposit Schemes among the members of the Nidhi carrying the words for private circulation to members only shall not be considered to be an advertisement for soliciting deposits.
  • Ratio of net owned funds to deposit shall be not more than 1:45.
  • Unencumbered term deposits of not less than 10% of the outstanding deposits as specified in Rule 14.
  • Net owned funds shall be Rs.10,00,000/- or more (Net owned funds means the aggregate of paid-up equity share capital and free reserved as reduced by the accumulated and intangible assets appearing in the last audited balance sheet).

Registration Benefits of Nidhi Company

  • Flooded recourses
  • More capital can be brought to the NIDHI Company as number of person involvement increases.
  • Limited RBI Regulation
  • Since Company is dealing only with its member, the regulation imposed by the RBI is very
    limited. It has to follow Nidhi Rules 2014.
  •  Limited Capital Requirement
  •  The requirement to Incorporate a NIDHI Company minimum Share Capital Should be Rs 5 Lakhs  only  whereas Minimum Capital Required for NBFC is 200 lakhs.
  • Easy formation
  • As NIDHI Company is not required to take License as compare to NBFC from RBI so the formation of the Company has become easier.

Documents Required for Nidhi Company

  • PAN CARD.
  • AADHAR CARD.
  • BANK STATEMENT AND ELECTRICITY BILL AND TELEPHONE BILL (LATEST).
  • PROOF OF REGISTERED OFFICIE ADDRESS.
  • DRIVING LICENCE OR VOTER ID OR PASSPORT.
  • DULY SIGNED MOA AND AOA.
  • LIST OF SUBSCRIBERS TO THE MOA AND AOA.
  • 2 Passport size photo.
  • Light Bill.

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Address:

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