A Nidhi company is a Non-banking Financial Company or precisely, a fund that aims more at the mutual benefit towards its members. It is more of a member-oriented company that offers to lend and borrow from its members only. It can also be called a savings fund or as said by RBI- a “Mutual Benefit Company(MBC)”. Nidhi companies are not directly regulated by RBI but instead used by the bank for any deposit-taking activities or by DCA for the deployment of funds. Nidhi companies play a great role in meeting the financial needs of ordinary people in places where nationalized and scheduled banks are reluctant to offer loans to them. Nidhi companies are formed, governed, and regulated by section 406 of the Companies Act, 2013. Their main aim lies in incorporating the habit of savings among the members/shareholders and for this they make sure that the funds contributed are generated from the shareholders only and are even allotted to them only.
Given below is the list of the various documents of the depositor that are required while registering a Nidhi Company:-
There are two ways of registering a Nidhi Company:-
By visiting the Government portal
The first step involves applying for Digital Identification Number and the Digital Signature Certificate. DIN is issued by the Ministry of Corporate Affairs and DSC is a prerequisite for all business-related filings. However, if the depositor has these, then he must not apply for them.
The next step is getting approval for a proper and unique name for the company from the MCA. The proposed name must not be identical to any other company and must fulfill all other provisions.
The Memorandum of Association and the Articles of Association must be submitted along with the relevant documents and INC 32 Form, clearly mentioning the objective of forming the company.
After fulfilling all the necessary obligations, the Registrar of Companies issues the Certificate of Incorporation within a period of 15-25 days.
The final stage is filing the application for the PAN and TAN numbers of the company. The PAN and TAN are received within a period of 7 working days.
By Visiting filing Lounge
Apply Here for Nidhi Company Registration.
Nidhi Companies require limited capital for formation. This ensures that the first step can be taken and the following steps will be achieved.Easy to raise funds
As the Nidhi Companies can borrow money from its members, therefore, fundraising becomes quite easier.Easy to lend money
Nidhi companies are also called Mutual Benefit Companies because they are readily available to lend money to the members. This feature makes these companies more approachable.No Need Of Outside Management
Nidhi Companies are quite capable of managing themselves as they can select people to manage among their company only. Hence, there is no need for outside management in such companies.Great service suppliers to normal individuals
Nidhi corporations offer loans to even those ordinary people whom the opposite money establishments don't cater to. These companies are accessible to lower and middle-income groups.Limited liability
The Nidhi Companies perform as separate legal entities hence, the members aren’t at risk of paying off the companies’ debts and losses from their personal assets.Enjoy many provisions and exemptions
Under the companies act 2013, the Nidhi Companies are exempted from various provisions and compliances and hence seem quite profitable.Better than Credit Cooperative Societies
Credit cooperative societies come with many restrictions and compliances. As compared to them, Nidhi companies have to bear lesser compliances and are a better option.
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No, Nidhi Companies come under the Non-banking financial institutions’ category and RBI does not have any hold over these.
Nidhi Companies are created to inculcate the habit of saving among their members.
Any member of a Nidhi company cannot own more than 1 lakh in his savings bank account.
The maximum interest payable on any deposit should not be more than 2 % above the rate of interest payable by any nationalized bank.
A minimum of 3 and a maximum of 15 directors are required in a Nidhi company.
The Nidhi company must not have an identical name to an existing company. Also, the name can be selected by going to the MCA website and searching for name options. The Company name should end with “Nidhi Limited “.
A Nidhi company needs to be registered as a Public Limited Company under the Companies act 2013. It takes 30-40 days to get a Nidhi Company registered.
Nidhi Companies have to abide by the laws made by the Central Government and hence the money is safe with Nidhi Companies.
Any Identity proof such as PAN card/Aadhar card/ voter ID/ Ration Card and Address Proof such as AAdhar card/ utility bill/ electricity bill/ telephone bill and NOC from the renter if the office is rented or Rent agreement if the office is self-owned.
Yes, any salaried individual can become Director in a Nidhi Company.
The annual returns must be filed with the MCA inForm MGT-7.
Income Tax returns of Nidhi Company must be filed by 30th September of the current financial year.
No, Nidhi Company registration is completely online, and with Filing Lounge, no personal visit is required.