Nidhi company is a company having a business activity similar to the banking company. The main objective of the company is cultivating the habit of thrifts and savings between its members. The company can borrow or lend money to its member in the form of deposits and loans. The nidhi company cannot provide unsecured loans to its members as it is restricted under Nidhi Rules. Unlike the insurance and banking companies, the Nidhi companies don’t require RBI approval to operate their business activity. The Ministry of Corporate Affairs (MCA) approval is sufficient for nidhi company registration.
You have required minimum 7 persons as a shareholder and 3 persons for directors to register the nidhi company in india. You required minimum 5 lakhs paid-up capital to start this nidhi company. The Nidhi company has all the features of a private limited company and public limited company, for example, the company has a separate identity, perpetual succession feature, limited liabilities etc. There are certain restrictions as well in the company as the company has to do all the applicable nidhi company compliances.
Documents Required for Nidhi company registration:
- PAN card
- Aadhar card
- Id proof (Voter Id/ Driving license/ Passport); anyone
- Address proof (Bank statement/ Electricity bill/ Mobile bill/ Telephone bill); anyone but not older than 2 months
Registered Office Proof
- Sale deed or house tax receipt if the property is owned and rent agreement if the property is rented
- Utility bill (Gas bill/ Mobile bill/ Telephone bill/ Electricity bill); anyone but not older than 2 months
- NOC from the owner of the property
Procedure to register nidhi company in India:
- Name application: The name approval application is the first step to start the company registration procedure. We can choose two names in one application for apply as per prefence basis, the registrar will approve that name which will be available on its database.
- Digital Signature Certificate (DSC): All the directors and shareholders of the company at the time of registration must have DSC because without a digitally signed form the company cannot get registered. The DSC has equal validity to a normal physical signature.
- Preparation of documents: After name reservation, it will be valid only for 20 days. We must be the process complete in between these 20 days. We have to submit all the documents with signed by the directors, shareholders and professionals like CA, CS, CWA
- Final Form submission: Once the directors and shareholders signed all the documents we have to filled final form and submitted to the registrar of their respective state along with all the documents.
- Grant of Certificate: The registrar office person check all the information and documents. After approval, He will issue a certificate of incorporation to the company. He will register company name on the database at their portal.
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