Nidhi Company Registration
- Get your Nidhi company registered with us in 10 working days.
- 1 DSC and 3 DINs included. Company name registration & Expert support till RBI principle approval
It is a company classified as an NBFC (a Non-banking financing company) and registered under Section 406 of the Companies Act 2013. The main business of such a company is to facilitate lending money between the core members of the company. This way, members (or shareholders) are encouraged to save money and invest them within the company. The company then uses these deposits for its members (or shareholders) to provide loans or advances and to acquire government-issued stocks/bonds/debentures/securities. It is regulated by the Ministry of Corporate Affairs, while the RBI monitors all its financial dealings.
- Cheaper To Borrow: As a member, one can borrow money at a minimum rate, relative to the rate at which banks lend money. This can be a major advantage in times of need, as different individuals in the mutual benefit society are likely to need funds at different points in time.
- Encourages Savings: It encourages all its members to save money and encourages a thrifty lifestyle. A Nidhi registration, after all, is a mutual benefit society wherein members can lend or borrow money and accept financial aid amongst them.
- Fewer Complications: Borrowing and lending to known persons, where the procedure is fixed, is much less complicated than dealing with banks or in an informal setting. A nidhi company incorporation enables its members to unlock the potential of their money and gain from lower interest rates when they require money themselves.
- At least seven members are mandatory to form a nidhi company in India. Out of these, three should be designated as the directors. However, it should acquire a minimum of 200 members within one year of commencement.
- Moreover, the company should have a minimum equity share capital of Rs 5 lakhs, for the Nidhi company registration process. This entire amount has to be paid up. However, the Net Owned Funds (NOF) must be increased to Rs 10 lakhs within a year of Nidhi Registration.
- At least 10% of its outstanding deposits should comprise unencumbered term deposits
- The prescribed NOF to deposits ratio should be 1:20.
- This includes equity share capital and free reserves and excludes accumulated losses as well as intangible assets.
- At least 10% of its outstanding deposits should comprise of unencumbered term deposits
- The prescribed NOF to deposits ratio should be 1:20. where 10% of the total deposits are in a fixed deposit account of a nationalized bank.
Checkout the Following things that e-nidhi cannot do:
- Chit fund business
- Hire purchase finance
- Acquisition/insurance of securities issued by any corporate
- Engaging as an NBFC in the business of advances or loans
- Leasing finance
- Acquisition of stocks/shares /bonds/securities/debentures issued by any local authority /Govt./marketable securities.
Contrary to what you might think, registering a Nidhi registration is a simple 3-Step process and can be done completely online. We’ve laid it out below.
- Name Reservation – We help you reserve your name with MCA.
- DSC and DINs – We help you get 1 DSC and 3 DINs.
- Documents and approval – We help you at every stage of the documentation process and in getting in-principle approval from the RBI.
To Be Submitted By All Directors
- Self-attested copy of PAN Card is very important for e nidhi registration process
- Self-attested copy of Driver’s License/ Voter ID/ Aadhaar Card/Passport is very important for e nidhi registration process
- Self-attested copy of Bank Statement/ Telephone Bill/Mobile Bill/ Electricity Bill is very important for e nidhi registration process
- Passport-size Photograph is very important for e nidhi registration process
- Specimen Signature Certificate is very important for e nidhi registration process
Nidhi company in India's registration charge is a very simple and easy process. The main thing you need to do is to find a good Company Registrar who can help you with the whole process. You can easily find a Company Registrar in your locality. After finding a good Company Registrar, the next thing you need to do is to fill up the required forms and pay the required fees. The e-Nidhi Company Registration fees is very nominal. You can easily find the required forms and pay the fees online. Once you have registered your Nidhi company in India, you will be given a Certificate of Incorporation. This certificate is very important and proves that your Nidhi company has been registered in India. After getting the Certificate of Incorporation, as per Nidhi company compliances, you can start operating your Nidhi company in India.
There is Nidhi registration charge that all the companies must pay in India. The Nidhi company registration fees vary from state to state but are typically between ₹5,000 and ₹10,000. Along with e-nidhi registration Charges, Nidhi companies are also required to pay an annual maintenance fee as Nidhi company compliances, typically between ₹1,000 and ₹2,000.
In 2019, a committee was formed to examine Nidhi Companies, leading to the enforcement of the Nidhi Company Rules in 2022. Prior to this, a declaration from the central government was not necessary for Nidhi companies to function. Under the new rules, individuals must verify that a Nidhi company has obtained a declaration from the central government before joining to protect the public.
New Nidhi Company Rules require a self-declaration from the central government for Nidhi companies with a share capital of ₹10 lacs. Moreover, the e-Nidhi Rules were introduced to regulate Nidhi companies in India and promote transparency, accountability, and governance in their operations. Companies must apply in Form NDH-4, have a minimum of 200 members, a net owned fund of Rs 20 lacs, and fulfill fit and proper person criteria. If the government does not respond within 45 days, the application is deemed approved. The rules apply to new companies while existing Nidhi companies have 18 months to comply.
- The formation of the Nidhi firm in India is not subject to RBI approval. As a result, it is quite simple to incorporate
- Nidhi companies are set up as public corporations
- The phrase ‘Nidhi Limited’ needs to be added after their name
- The undertakings of Nidhi companies are relatively comparable to NBFCs, and as a result, they are governed by the RBI
- The primary goal of Nidhi company mainly revolves around internal loan and borrowing activities, with no involvement from outside parties at all
- The Nidhi Rules of 2014 allow Nidhi to offer locker facilities for rent to its members. At no point throughout the fiscal year should the company's rental income exceed 20% of its total revenue.
Minimum paid-up capital of ₹10 lakh | Filing of NDH-4 form within 120 days of incorporation | Approval of application by central government within 45 days | Net owned fund to maintain ₹20 lakh | Applicable to companies incorporated after 2022 | Existing companies are to comply within 18 months
Nidhi Company Rules, 2014 and the Reserve Bank of India (RBI) are separate entities with different requirements. The Reserve Bank of India is the central bank of India, which is responsible for regulating and supervising the country's financial system. Financial institutions operating in India, including Nidhi companies, are subject to certain requirements set by the RBI.
In contrast, Nidhi companies are non-banking financial companies (NBFCs) that primarily serve the interests of their members. In India, Nidhi companies are governed by the Nidhi Company Rules, 2014, which outline the requirements and rules they must follow. Nidhi companies are required to maintain a minimum net owned fund (NOF) of ₹10 lakhs, hold at least 10% of their deposits in unencumbered term deposits with scheduled commercial banks, and comply with a variety of regulatory and reporting requirements set out by the RBI.
A number of additional requirements are outlined in the Nidhi Company Rules, 2014, including minimum and maximum share capital requirements, restrictions on accepting deposits, and guidelines for conducting annual general meetings. To operate legally and avoid penalties, Nidhi companies must comply with the RBI's requirements and the Nidhi Company Rules, 2014.
The MCA[1] notified the Nidhi (Amendment) Rules, 2023 on 20 January 2023, to change some forms relevant to Nidhi firms as specified by the Nidhi Rules of 2014. Form NDH-1, Form NDH-2, Form NDH-3, and Form NDH-4 have all been modified. The Nidhi (Amendment) Rules, 2023's Annexure includes the modified version of these forms.
Access To Experts
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Realistic Expectations
By handling all the paperwork, we ensure a seamless interactive process with the government. We provide clarity on the nidhi company registration process to set realistic expectations.
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17th March: Stringent compliance norms for Nidhi Companies
To protect the interest of investors, the Ministry has advised them to verify a Nidhi Company status before pumping in money. They can verify it from the notification in the official gazette.
21st March: Time-frame for filing Form NDH-4
To enhance transparency and investor-friendliness, Nidhi companies are now instructed to follow the time frame for applying in Form NDH-4. In case of non-compliance, a Nidhi Company will not be allowed to file Form No SH-7 and Form PAS-3.
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