Nidhi Company Registration

Section 406 of the “Companies Act, 2013” and the Companies (Nidhi Companies) Rules of 2014, provide all the arrangements concerning the joining and administration of a Nidhi Company in India.

The rules and directives for the Nidhi Companies are likewise given by the RBI. These are chiefly identified with financial activities and investments by companies including the NBFCs.

The interest charged on loans under a Nidhi Company is very sensible. The advances are given against security as it were. The deposits under Nidhi do not earn much interest as compared to deposits in the sorted out banking sector.

All lending and borrowing of the Nidhi Companies are done by its members, exclusively. Consequently, such organizations additionally allude to Mutual Benefit Societies.

In the event when you are hoping to begin a business in financing or advances in India, a Nidhi Company is the best choice for it.

Documents Required

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).

Benefits of Starting a Nidhi Company

The main objective behind building up a Nidhi Company is to urge its members to save so that they can easily meet their monetary requisites emerging from time to time. By being thrifty they become independent and would meet any future expense. And the advantage of getting a company enlisted as Nidhi doesn’t end here.

There are many favourable benefits of forming a Nidhi Company. Some are listed below:

âœ” Liability is Limited: The liability of Directors and investors of a Nidhi Company is limited. The individual resources of any of the Directors or members are not in danger of being seized by banks, creditors, and government.
âœ” Fewer Regulations: Nidhi organizations are administered under the Nidhi Rules, 2014. The Central Government is the directing power, and it only controls it’s exercising and working. Not many Rules are enforced by the RBI on a Nidhi company.
âœ” Better Credibility: Nidhi companies offer better credibility instead of some other member-based associations like “Trusts, Cooperative Societies, or NGOs.”
âœ” Better Option for Savings: The main purpose of a Nidhi Company’s incorporation is to encourage the habit of saving among the members (shareholders) of the Company. This is how it achieves the other goal of being mutually beneficial. The Nidhi Companies are allowed to lend and borrow money from it’s members (shareholders) only.
âœ” Easy Access of Public Funds: The loans from the Nidhi Company comes at a less expensive rate than advances from banks and other NBFCs.
âœ” Micro Banking: Nidhi companies give banking services to the remote and rural public of India, who are still located in far-off lands.
âœ” Better Credit Co-operative Society: A Nidhi Company is a nearby substitute for a credit co-employable society. Furthermore, it is increasingly favored by the small financers. When a Nidhi organization has been enlisted, the members can profit from a considerable number of advantages of credit co-operative society.
âœ” Simple Processing: Borrowing and lending to known people is substantially less confusing than managing banks, where the method is generic and fixed.
âœ” Easy Registration Process: The procedure to enroll a Nidhi Company with LegalRaasta is very easy and transparent. You don’t have to take any permits from RBI. You simply need to incorporate your organization as an open constrained, with the MCA.
âœ” Single Regulatory Body: After the Amendment in Companies act 2013, Nidhi Companies are supervised by the Nidhi Company Rules, 2014.
âœ” Low Capital Requirement: Ministry of Corporate Affairs (MCA) orders that the base capital requisite is Rs.5 lakhs for a Nidhi company. And, within 1-year, the capital has to be raised to be at least Rs.10 lakhs. The “Fees, DIN, DSC & Other Expenses” are approximately Rs.25-30,000. These include Government fees that, differ from State to State.
âœ” Fulfilling the needs of Lower & Middle-income groups: Nidhi Companies assume a significant job in addressing the needs of lower and middle-income groups by giving them money related assistance without complex formalities and documentation.
âœ” Easier Eligible: People getting minimum wages and belonging to lower strata are usually unable to take loans from traditional banks because of their high eligibility criteria. For them, a Nidhi Company is a good option to obtain finance because of the fewer conditions.
âœ” No External Involvement: Nidhi Companies take assets from their members and further gives credit to it’s members. In this way, no outer variables are influencing the work of these organizations. The financial members themselves direct the tasks of the organization.
âœ” Separate Entity: A Nidhi Company is a separate legal entity that can acquire assets and incur debts in it’s own name.

What is included in Our Nidhi Company Registration Package

DIN for 3 Directors

Digital Signature For 3 Directors

Name search & approval

MOA/AOA

Registration Fees

Company Pan Card

Key Features

Few points about the working of Nidhi Companies in India, as cited in Rule-6 of the Nidhi Rules of 2014, are critical to note:

âœ” It can’t convey any of the following types of exchanges, such as “chit fund, leasing finance, insurance, or acquisition of securities” issued by any corporation.
âœ” It can’t acknowledge deposits or offer advances to someone outside the company.
âœ” A Nidhi Company isn’t engaged to give ‘inclination offers, debentures, or some other obligation instruments” in any structure.
âœ” Companies Act, 2013 and Nidhi Rules, 2014 are the administering bodies and they only control the activities of a Nidhi Company in India.
âœ” A Nidhi Company doesn’t go under the purview of the RBI.
âœ” It isn’t designated for performing vehicle fund business or microfinance business in India.
âœ” Within a year of enrollment, the number of members must be at a rate of 200.
âœ” A maximum interest rate of 20% p.a. (calculated by the reducing balance method) can be charged.
âœ” The maximum rate of interest that can be offered on a savings deposit account shall not exceed 2% above the rate offered by the Nationalised Banks.
âœ” A Nidhi Company can acknowledge FD, RD, and reserve funds. It can also earn an interest of 12.5% as of now.
âœ” The rate of interest that can be offered on Fixed and Recurring Deposits must not surpass the maximum rate of interest, prescribed by RBI for the NBFCs to be offered on deposits. The maximum limit of interest for NBFCs are also applicable to the Nidhi companies.
âœ” Activities are restricted to a regional level for the initial 3 Years. After fulfillment of 3 years, 3 workplaces can be set up inside a similar area. For development out of the region, an earlier endorsement from the Regulator Director is required.
âœ” It can only give loan against securities. These securities may be “Gold, Property, Fixed Deposits, Government Securities, or Life Insurance Certificates.”
âœ” Unencumbered deposits (Deposits that aren’t offered as securities for any purpose) should not be less than 10 % of outstanding deposits.
âœ” Filing of “Audit, Tax Returns, and Annual Accounts” in the best possible configuration is necessary.

Procedure for Nidhi Company Registration

Though the process of enrolling a Nidhi Company is easy to handle. Still, help from an expert is encouraged to finish different forms and to file them within time.

Furthermore, LegalRaasta is a specialist in Nidhi Company Incorporations, with more than 7 years of involvement in the field and effectively enlisting more than 500 Nidhi Companies. Our operations are spread all over India.

Step 1: Applying for DIN and DSC

To begin with, the Directors of the Nidhi Company have to apply for DIN (Director’s Identification Number) and DSC (Digital Signature Certificate).
DIN is given by the MCA and DSC is a digital signature used for an all e-filing process. This progression can be skipped for the Directors who have both DIN and DSC.

Step 2: Name Approval

Presently, you have to pick and propose 3 distinct names to MCA for your Nidhi Company. Out of these 3 names, just one will be acknowledged for your Company by MCA. The proposed names must be special and not similar/identical to the names of previously enlisted organizations. According to Rule 8 of the Companies Act, The affirmed name will stay legitimate for 20 days.

Step 3: MoA & AoA

These must specify the main motive of incorporating a Nidhi company. The “MoA and AoA” are to be filed with the ROC (Registrar of Companies) along with a subscription statement.

Step 4: Certificate of Incorporation (CIN)

It takes between 15-25 days to frame a Nidhi company, and to get the incorporation certificate. This certificate proclaims that an organization has been made and it specifies the company identification number (CIN) too.

Step 5: PAN, TAN and Bank Account

Lastly, you need to apply for both “PAN and TAN”. The PAN and TAN are usually received within 7 working days. Later, you have to get a bank account opened by submitting the “Certificate of Incorporation, MoA, AoA, and PAN” to the bank.

Nidhi Company Registration

Documents Required

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).

Benefits of Starting a Nidhi Company

There are many favourable benefits of forming a Nidhi Company. Some are listed below:

âœ” Liability is Limited: The liability of Directors and investors of a Nidhi Company is limited. The individual resources of any of the Directors or members are not in danger of being seized by banks, creditors, and government.
âœ” Fewer Regulations: Nidhi organizations are administered under the Nidhi Rules, 2014. The Central Government is the directing power, and it only controls it’s exercising and working. Not many Rules are enforced by the RBI on a Nidhi company.
âœ” Better Credibility: Nidhi companies offer better credibility instead of some other member-based associations like “Trusts, Cooperative Societies, or NGOs.”
âœ” Better Option for Savings: The main purpose of a Nidhi Company’s incorporation is to encourage the habit of saving among the members (shareholders) of the Company. This is how it achieves the other goal of being mutually beneficial. The Nidhi Companies are allowed to lend and borrow money from it’s members (shareholders) only.
âœ” Easy Access of Public Funds: The loans from the Nidhi Company comes at a less expensive rate than advances from banks and other NBFCs.
âœ” Micro Banking: Nidhi companies give banking services to the remote and rural public of India, who are still located in far-off lands.
âœ” Better Credit Co-operative Society: A Nidhi Company is a nearby substitute for a credit co-employable society. Furthermore, it is increasingly favored by the small financers. When a Nidhi organization has been enlisted, the members can profit from a considerable number of advantages of credit co-operative society.
âœ” Simple Processing: Borrowing and lending to known people is substantially less confusing than managing banks, where the method is generic and fixed.
âœ” Easy Registration Process: The procedure to enroll a Nidhi Company with LegalRaasta is very easy and transparent. You don’t have to take any permits from RBI. You simply need to incorporate your organization as an open constrained, with the MCA.
âœ” Single Regulatory Body: After the Amendment in Companies act 2013, Nidhi Companies are supervised by the Nidhi Company Rules, 2014.
âœ” Low Capital Requirement: Ministry of Corporate Affairs (MCA) orders that the base capital requisite is Rs.5 lakhs for a Nidhi company. And, within 1-year, the capital has to be raised to be at least Rs.10 lakhs. The “Fees, DIN, DSC & Other Expenses” are approximately Rs.25-30,000. These include Government fees that, differ from State to State.
âœ” Fulfilling the needs of Lower & Middle-income groups: Nidhi Companies assume a significant job in addressing the needs of lower and middle-income groups by giving them money related assistance without complex formalities and documentation.
âœ” Easier Eligible: People getting minimum wages and belonging to lower strata are usually unable to take loans from traditional banks because of their high eligibility criteria. For them, a Nidhi Company is a good option to obtain finance because of the fewer conditions.
âœ” No External Involvement: Nidhi Companies take assets from their members and further gives credit to it’s members. In this way, no outer variables are influencing the work of these organizations. The financial members themselves direct the tasks of the organization.
âœ” Separate Entity: A Nidhi Company is a separate legal entity that can acquire assets and incur debts in it’s own name.

What is included in Our Nidhi Company Registration Package

DIN for 3 Directors

Digital Signature For 3 Directors

Name search & approval

MOA/AOA

Registration Fees

Company Pan Card

Key Features

Few points about the working of Nidhi Companies in India, as cited in Rule-6 of the Nidhi Rules of 2014, are critical to note:

âœ” It can’t convey any of the following types of exchanges, such as “chit fund, leasing finance, insurance, or acquisition of securities” issued by any corporation.
âœ” It can’t acknowledge deposits or offer advances to someone outside the company.
âœ” A Nidhi Company isn’t engaged to give ‘inclination offers, debentures, or some other obligation instruments” in any structure.
âœ” Companies Act, 2013 and Nidhi Rules, 2014 are the administering bodies and they only control the activities of a Nidhi Company in India.
âœ” A Nidhi Company doesn’t go under the purview of the RBI.
âœ” It isn’t designated for performing vehicle fund business or microfinance business in India.
âœ” Within a year of enrollment, the number of members must be at a rate of 200.
âœ” A maximum interest rate of 20% p.a. (calculated by the reducing balance method) can be charged.
âœ” The maximum rate of interest that can be offered on a savings deposit account shall not exceed 2% above the rate offered by the Nationalised Banks.
âœ” A Nidhi Company can acknowledge FD, RD, and reserve funds. It can also earn an interest of 12.5% as of now.
âœ” The rate of interest that can be offered on Fixed and Recurring Deposits must not surpass the maximum rate of interest, prescribed by RBI for the NBFCs to be offered on deposits. The maximum limit of interest for NBFCs are also applicable to the Nidhi companies.
âœ” Activities are restricted to a regional level for the initial 3 Years. After fulfillment of 3 years, 3 workplaces can be set up inside a similar area. For development out of the region, an earlier endorsement from the Regulator Director is required.
âœ” It can only give loan against securities. These securities may be “Gold, Property, Fixed Deposits, Government Securities, or Life Insurance Certificates.”
âœ” Unencumbered deposits (Deposits that aren’t offered as securities for any purpose) should not be less than 10 % of outstanding deposits.
âœ” Filing of “Audit, Tax Returns, and Annual Accounts” in the best possible configuration is necessary.

Procedure for Nidhi Company Registration

Step 1: Applying for DIN and DSC

Step 2: Name Approval

Step 3: MoA & AoA

These must specify the main motive of incorporating a Nidhi company. The “MoA and AoA” are to be filed with the ROC (Registrar of Companies) along with a subscription statement.

Step 4: Certificate of Incorporation (CIN)

Step 5: PAN, TAN and Bank Account

Important Points

Minimum Requirement

A Section 8 Company gets incorporated by the MCA.
All necessities of the Companies Act 2013, for example, the minimum number of Directors and Shareholders, and so on must be met with.

Charitable Object

Section 8 Companies can be built up for non-benefit goals only. Any benefit earned or income received by this Company is not to be dispersed among its individuals.
This infers the pay will either be reinvested in the business or used for the advancement of its fundamental items, for example, charitable reason.

Companies Act, 2013

must follow the arrangements recommended under the Companies Act, 2013. Maintaining Book of Accounts, Return Filing, Audits, Board Meetings, and so on.

MoA & AoA

A Section 8 Company will not roll out any improvements to the arrangements of its MoA and AoA without looking for an endorsement from the Central Government first.

Voting Rights

The voting rights of the investors of a Section 8 Company depend on the number of shares held by them. Like that of some other organization.

Income tax

The Company needs to follow the arrangements of the Income Tax Act.

GST Registration

On the off chance that Section 8 Company goes under the domain of the GST Act, it must get registered with GST.

Conversion

It may not change over itself to some other sort of organization structure without conforming to conditions, as material.

Restrictions on Nidhi Company

Despite the fact that the sole motive behind a Nidhi company, is taking up non-banking financial activities, they are prohibited to perform those transactions that may involve external factors, such as:

Publicize themselves to encourage deposits,
Chit funds,
Leasing Finance,
Hire-Purchase finances,
Lotteries,
Insurance,
Sell, mortgage, or pledge the advantage kept with it as security for a loan,
Getting into a partnership for completing lending and borrowing activities,
Taking deposits or lending funds to somebody other than its investors,

Issue inclination offers, debentures, or some other obligation instruments,
Issue equity shares of the nominal estimations of over Rs. 10/- each,
Provide its shareholder’s value shares surpassing 10 or shares of the value of more than Rs. 100/-,
Open a present record with its individuals (though it is allowed to open a Savings Account),
Loan to or take a store from a corporate,
Pay commission, fee or incentive for mobilizing deposits,
Carry on any other business than borrowing and lending to its members,
Hire a Purchase Financer,
Pay any brokerage for granting a loan to its individuals.

Requirements for a Nidhi Company Incorporation

Given below are the essential conditions that must be met for registering or operating as a Nidhi Company.

Requirement before Registration

âœ” Minimum number of shareholders or members – 7
âœ” Minimum number of Directors -3
âœ” The minimum capital requirement is of Rs. 5 lakhs
âœ” DIN for Directors
âœ” Minimum 3 Directors.
âœ” No Preference Shares shall be issued.
âœ” The objective of the company shall be cultivating the habit of saving by receiving deposits from and lending to its members only for their mutual benefits.

Requirement after Registration

âœ” By the end of the 1st year, the number of members or shareholders of the Nidhi Company must be 200 at least.
âœ” NOF should be more than Rs. 10 lakhs.
âœ” The ratio for NOF to Deposit should be more than 1:20.
âœ” Unencumbered deposits should exceed 10 % of outstanding deposits.

Compliances for Nidhi Company

âœ” NDH-1 Form: A Nidhi Company has to submit the list of members within 90 days at the end of every financial year, in this Form.
âœ” NDH-2 Form: It can request the MCA for an extension in this Form, in case it has not been able to add 200 members in it’s a first financial year.
âœ” NDH-3 Form:Other than the above NDH-1 Form, a half-yearly return is also required to be filled in this Form.
âœ” Annual Returns with ROC: A Nidhi Company has to file it’s Annual Returns with MCA through Form “MGT-7.”
âœ” Profit & Loss Statement and Balance sheet:The financial statements and other related documents are to be submitted, annually, in Form “AOC-4.”
âœ” Income Tax Returns:Nidhi Company, similar to every different business, must document its Annual Income Tax Returns by 30th September of the accompanying monetary year.

Deposits & Loans

Here we understand the regulations governing the loan and deposit under Nidhi Company.

Deposits under Nidhi Company

âœ” There are 3 types of deposits, which a Nidhi company can accept. These are “Savings Deposit, Fixed Deposit (FD), and Recurring Deposit.”
âœ” Nidhi can pay a maximum interest of up to 12.5% on FD & RD and 6% on a savings account.
âœ” Nidhi can deposit up to 20 times the funds invested.

Loans from Nidhi Company

âœ” 3 types of securities can be accepted for loans on offer by Nidhi Companies. Loans can be provided against “Gold, Property, Others (LIC, FD, etc.).”
âœ” A Nidhi Company cannot engage in the business of microfinance but can lend it up to 20% interest against security.
âœ” It can take legal action if a member fails to repay any sum of money.

Nidhi Company Registration

Documents Required

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).

Benefits of Starting a Nidhi Company

There are many favourable benefits of forming a Nidhi Company. Some are listed below:

âœ” Liability is Limited: The liability of Directors and investors of a Nidhi Company is limited. The individual resources of any of the Directors or members are not in danger of being seized by banks, creditors, and government.
âœ” Fewer Regulations: Nidhi organizations are administered under the Nidhi Rules, 2014. The Central Government is the directing power, and it only controls it’s exercising and working. Not many Rules are enforced by the RBI on a Nidhi company.
âœ” Better Credibility: Nidhi companies offer better credibility instead of some other member-based associations like “Trusts, Cooperative Societies, or NGOs.”
âœ” Better Option for Savings: The main purpose of a Nidhi Company’s incorporation is to encourage the habit of saving among the members (shareholders) of the Company. This is how it achieves the other goal of being mutually beneficial. The Nidhi Companies are allowed to lend and borrow money from it’s members (shareholders) only.
âœ” Easy Access of Public Funds: The loans from the Nidhi Company comes at a less expensive rate than advances from banks and other NBFCs.
âœ” Micro Banking: Nidhi companies give banking services to the remote and rural public of India, who are still located in far-off lands.
âœ” Better Credit Co-operative Society: A Nidhi Company is a nearby substitute for a credit co-employable society. Furthermore, it is increasingly favored by the small financers. When a Nidhi organization has been enlisted, the members can profit from a considerable number of advantages of credit co-operative society.
âœ” Simple Processing: Borrowing and lending to known people is substantially less confusing than managing banks, where the method is generic and fixed.
âœ” Easy Registration Process: The procedure to enroll a Nidhi Company with LegalRaasta is very easy and transparent. You don’t have to take any permits from RBI. You simply need to incorporate your organization as an open constrained, with the MCA.
âœ” Single Regulatory Body: After the Amendment in Companies act 2013, Nidhi Companies are supervised by the Nidhi Company Rules, 2014.
âœ” Low Capital Requirement: Ministry of Corporate Affairs (MCA) orders that the base capital requisite is Rs.5 lakhs for a Nidhi company. And, within 1-year, the capital has to be raised to be at least Rs.10 lakhs. The “Fees, DIN, DSC & Other Expenses” are approximately Rs.25-30,000. These include Government fees that, differ from State to State.
âœ” Fulfilling the needs of Lower & Middle-income groups: Nidhi Companies assume a significant job in addressing the needs of lower and middle-income groups by giving them money related assistance without complex formalities and documentation.
âœ” Easier Eligible: People getting minimum wages and belonging to lower strata are usually unable to take loans from traditional banks because of their high eligibility criteria. For them, a Nidhi Company is a good option to obtain finance because of the fewer conditions.
âœ” No External Involvement: Nidhi Companies take assets from their members and further gives credit to it’s members. In this way, no outer variables are influencing the work of these organizations. The financial members themselves direct the tasks of the organization.
âœ” Separate Entity: A Nidhi Company is a separate legal entity that can acquire assets and incur debts in it’s own name.

What is included in Our Nidhi Company Registration Package

DIN for 3 Directors

Digital Signature For 3 Directors

Name search & approval

MOA/AOA

Registration Fees

Company Pan Card

Key Features

Few points about the working of Nidhi Companies in India, as cited in Rule-6 of the Nidhi Rules of 2014, are critical to note:

âœ” It can’t convey any of the following types of exchanges, such as “chit fund, leasing finance, insurance, or acquisition of securities” issued by any corporation.
âœ” It can’t acknowledge deposits or offer advances to someone outside the company.
âœ” A Nidhi Company isn’t engaged to give ‘inclination offers, debentures, or some other obligation instruments” in any structure.
âœ” Companies Act, 2013 and Nidhi Rules, 2014 are the administering bodies and they only control the activities of a Nidhi Company in India.
âœ” A Nidhi Company doesn’t go under the purview of the RBI.
âœ” It isn’t designated for performing vehicle fund business or microfinance business in India.
âœ” Within a year of enrollment, the number of members must be at a rate of 200.
âœ” A maximum interest rate of 20% p.a. (calculated by the reducing balance method) can be charged.
âœ” The maximum rate of interest that can be offered on a savings deposit account shall not exceed 2% above the rate offered by the Nationalised Banks.
âœ” A Nidhi Company can acknowledge FD, RD, and reserve funds. It can also earn an interest of 12.5% as of now.
âœ” The rate of interest that can be offered on Fixed and Recurring Deposits must not surpass the maximum rate of interest, prescribed by RBI for the NBFCs to be offered on deposits. The maximum limit of interest for NBFCs are also applicable to the Nidhi companies.
âœ” Activities are restricted to a regional level for the initial 3 Years. After fulfillment of 3 years, 3 workplaces can be set up inside a similar area. For development out of the region, an earlier endorsement from the Regulator Director is required.
âœ” It can only give loan against securities. These securities may be “Gold, Property, Fixed Deposits, Government Securities, or Life Insurance Certificates.”
âœ” Unencumbered deposits (Deposits that aren’t offered as securities for any purpose) should not be less than 10 % of outstanding deposits.
âœ” Filing of “Audit, Tax Returns, and Annual Accounts” in the best possible configuration is necessary.

Procedure for Nidhi Company Registration

Step 1: Applying for DIN and DSC

Step 2: Name Approval

Step 3: MoA & AoA

These must specify the main motive of incorporating a Nidhi company. The “MoA and AoA” are to be filed with the ROC (Registrar of Companies) along with a subscription statement.

Step 4: Certificate of Incorporation (CIN)

Step 5: PAN, TAN and Bank Account

Important Points

Minimum Requirement

A Section 8 Company gets incorporated by the MCA.
All necessities of the Companies Act 2013, for example, the minimum number of Directors and Shareholders, and so on must be met with.

Charitable Object

Section 8 Companies can be built up for non-benefit goals only. Any benefit earned or income received by this Company is not to be dispersed among its individuals.
This infers the pay will either be reinvested in the business or used for the advancement of its fundamental items, for example, charitable reason.

Companies Act, 2013

must follow the arrangements recommended under the Companies Act, 2013. Maintaining Book of Accounts, Return Filing, Audits, Board Meetings, and so on.

MoA & AoA

A Section 8 Company will not roll out any improvements to the arrangements of its MoA and AoA without looking for an endorsement from the Central Government first.

Voting Rights

The voting rights of the investors of a Section 8 Company depend on the number of shares held by them. Like that of some other organization.

Income tax

The Company needs to follow the arrangements of the Income Tax Act.

GST Registration

On the off chance that Section 8 Company goes under the domain of the GST Act, it must get registered with GST.

Conversion

It may not change over itself to some other sort of organization structure without conforming to conditions, as material.

Restrictions on Nidhi Company

Despite the fact that the sole motive behind a Nidhi company, is taking up non-banking financial activities, they are prohibited to perform those transactions that may involve external factors, such as:

Publicize themselves to encourage deposits,
Chit funds,
Leasing Finance,
Hire-Purchase finances,
Lotteries,
Insurance,
Sell, mortgage, or pledge the advantage kept with it as security for a loan,
Getting into a partnership for completing lending and borrowing activities,
Taking deposits or lending funds to somebody other than its investors,

Issue inclination offers, debentures, or some other obligation instruments,
Issue equity shares of the nominal estimations of over Rs. 10/- each,
Provide its shareholder’s value shares surpassing 10 or shares of the value of more than Rs. 100/-,
Open a present record with its individuals (though it is allowed to open a Savings Account),
Loan to or take a store from a corporate,
Pay commission, fee or incentive for mobilizing deposits,
Carry on any other business than borrowing and lending to its members,
Hire a Purchase Financer,
Pay any brokerage for granting a loan to its individuals.

Requirements for a Nidhi Company Incorporation

Given below are the essential conditions that must be met for registering or operating as a Nidhi Company.

Requirement before Registration

âœ” Minimum number of shareholders or members – 7
âœ” Minimum number of Directors -3
âœ” The minimum capital requirement is of Rs. 5 lakhs
âœ” DIN for Directors
âœ” Minimum 3 Directors.
âœ” No Preference Shares shall be issued.
âœ” The objective of the company shall be cultivating the habit of saving by receiving deposits from and lending to its members only for their mutual benefits.

Requirement after Registration

âœ” By the end of the 1st year, the number of members or shareholders of the Nidhi Company must be 200 at least.
âœ” NOF should be more than Rs. 10 lakhs.
âœ” The ratio for NOF to Deposit should be more than 1:20.
âœ” Unencumbered deposits should exceed 10 % of outstanding deposits.

Compliances for Nidhi Company

âœ” NDH-1 Form: A Nidhi Company has to submit the list of members within 90 days at the end of every financial year, in this Form.
âœ” NDH-2 Form: It can request the MCA for an extension in this Form, in case it has not been able to add 200 members in it’s a first financial year.
âœ” NDH-3 Form:Other than the above NDH-1 Form, a half-yearly return is also required to be filled in this Form.
âœ” Annual Returns with ROC: A Nidhi Company has to file it’s Annual Returns with MCA through Form “MGT-7.”
âœ” Profit & Loss Statement and Balance sheet:The financial statements and other related documents are to be submitted, annually, in Form “AOC-4.”
âœ” Income Tax Returns:Nidhi Company, similar to every different business, must document its Annual Income Tax Returns by 30th September of the accompanying monetary year.

Deposits & Loans

Here we understand the regulations governing the loan and deposit under Nidhi Company.

Deposits under Nidhi Company

âœ” There are 3 types of deposits, which a Nidhi company can accept. These are “Savings Deposit, Fixed Deposit (FD), and Recurring Deposit.”
âœ” Nidhi can pay a maximum interest of up to 12.5% on FD & RD and 6% on a savings account.
âœ” Nidhi can deposit up to 20 times the funds invested.

Loans from Nidhi Company

âœ” 3 types of securities can be accepted for loans on offer by Nidhi Companies. Loans can be provided against “Gold, Property, Others (LIC, FD, etc.).”
âœ” A Nidhi Company cannot engage in the business of microfinance but can lend it up to 20% interest against security.
âœ” It can take legal action if a member fails to repay any sum of money.

Nidhi Company Registration

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Procedure of GST Registration

Fill the simple application form provided on our website.

Send your documents that are required according to your category of business.

We will file all your forms on behalf of you along with the declaration.

As soon as we will get your GST number, we will send you by E-mail.

Call Us For Quote

+919540641059

Nidhi Company Registration

Documents Required

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).

Benefits of Starting a Nidhi Company

There are many favourable benefits of forming a Nidhi Company. Some are listed below:

What is included in Our Nidhi Company Registration Package

Key Features

Few points about the working of Nidhi Companies in India, as cited in Rule-6 of the Nidhi Rules of 2014, are critical to note:

Procedure for Nidhi Company Registration

Step 1: Applying for DIN and DSC

Step 2: Name Approval

Step 3: MoA & AoA

Step 4: Certificate of Incorporation (CIN)

Step 5: PAN, TAN and Bank Account

Nidhi Company Registration

Documents Required

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).

Benefits of Starting a Nidhi Company

There are many favourable benefits of forming a Nidhi Company. Some are listed below:

What is included in Our Nidhi Company Registration Package

Key Features

Few points about the working of Nidhi Companies in India, as cited in Rule-6 of the Nidhi Rules of 2014, are critical to note:

Procedure for Nidhi Company Registration

Step 1: Applying for DIN and DSC

Step 2: Name Approval

Step 3: MoA & AoA

Step 4: Certificate of Incorporation (CIN)

Step 5: PAN, TAN and Bank Account

Important Points

Minimum Requirement

Charitable Object

Companies Act, 2013

MoA & AoA

Voting Rights

Income tax

GST Registration

Conversion

Restrictions on Nidhi Company

Despite the fact that the sole motive behind a Nidhi company, is taking up non-banking financial activities, they are prohibited to perform those transactions that may involve external factors, such as:

Requirements for a Nidhi Company Incorporation

Requirement before Registration

Requirement after Registration

Compliances for Nidhi Company

Deposits & Loans

Deposits under Nidhi Company

Loans from Nidhi Company

Nidhi Company Registration

Documents Required

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).

Benefits of Starting a Nidhi Company

There are many favourable benefits of forming a Nidhi Company. Some are listed below:

What is included in Our Nidhi Company Registration Package

Key Features

Few points about the working of Nidhi Companies in India, as cited in Rule-6 of the Nidhi Rules of 2014, are critical to note:

Procedure for Nidhi Company Registration

✔ Register for GST online for Free* and stay ahead on GST Compliance!

✔ GST is a tax registration mandatory for all businesses in India meeting ANY of these conditions: