NIDHI COMPANY REGISTRATION

NIDHI COMPANY REGISTRATION

Today, we are going to discuss about the registration of a Nidhi Company. Before this, we have to understand the concept of a Nidhi Company. Let’s start a small discussion on this topic, a Nidhi Company is that kind of NBFC (Non-Banking financial company) which are formed for borrowing and lending money to its members. This kind of NBFC depends upon the principal of mutual benefits and implants the habit of saving in its members. In India, these companies are more popular in southern part.

In case of Nidhi Companies, there is no need to register for getting a licence from the Reserve Bank of India (RBI). But, they have to get registered as a public company & the names of these kind of companies should end with “Nidhi Limited”.

REQUIREMENTS FOR REGISTRATION OF NIDHI COMPANY

There are some requirements which is needed for getting registered as Nidhi Company

• It is necessary, that the company should be incorporated as a private limited company under the companies act.
• Minimum 7 shareholders are required.
• Minimum 3 directors are required.
• A minimum amount of Rs 5 lakh as equity capital is required.
• The minimum limit of members in Nidhi Companies is 200.
• The company must have Net owned fund of worth Rs 10 lakh or more.
• The name of these kind of companies should end with “Nidhi Limited”.
• All the objectives of a nidhi company, must be related to lending or borrowing funds among its members only.
• The company should have a balance deposit of 10% or more of the outstanding deposit.
• Director Identification Number is required

REQUIRED DOCUMENTS FOR REGISTRATION OF A NIDHI COMPANY

For getting registered as a Nidhi Company, the following documents are required :-

• Proof of address of the registered office of business has to be provided. It can be a Rent/lease agreement also
• A No Objection Certificate (NOC) must be signed by the landlord of that place, where the business is registered.
• Identity Proof
• Address proof of all the members of the company must be provided
• Photographs of all of the members of company is required.
• Digital Signature Certificate (DSC) of the company.
• Pan card copy of the members
• Director Identification Number (DIN) of all the director must be provided
• Updated certified copy of Memorandum of Association (MOA) of the company.
• Updated certified copy of Articles of Association (AOA) of the company

FORMS TO BE FILED FOR THE REGISTRATION OF A NIDHI COMPANY

For registering a Nidhi Company, the following forms have to be filed :-

INC 9 :- In the memorandum of association (MOA), the INC 9 form is to be filed by all the subscribers.

DIR 2 :- All the directors of the company must file the DIR-2. Along this, as per rule 5 and 6 of nidhi rules 2014, declaration has to be signed by all the subscribers.

PROCEDURE FOR REGISTERING A NIDHI COMPANY

Following are the steps, which have to be taken to register a Nidhi Company. :-

i. DIN & DSC :-The applicant must obtain the DIN & the DSC of all the directors of a company.

ii. Name Approval :- It is compulsory for a Nidhi Company to have “Nidhi Ltd.” at the end of the company name. Company’s name must be approved as a public limited company with the words “Nidhi Ltd.” at the end.

iii. COI filing :- After getting COI, the members and the directors of the company can apply for the Permanent Account Number (PAN) and a tax deduction account number (TAN) to the MCA, assure that PAN & TAN to be issued in the company’s name (Ministry of Corporate Affairs).

iv. Details of members has to be submitted :- The company should have the minimum no. of members at the time of application, which is 200. Along this, details of all the members must be submitted to the Nidhi board under MCA/ROC.