Register Nidhi Company
To start a permanent and a mutual benefit fund, or a mutual benefit company, then register a Nidhi Company. Starting price INR 13999/- only.
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Step 1
Get DSC & Reserve Company Name
What is a Nidhi Company?
Nidhi Company registered under section 406 of the Companies Act, 2013, and classified as a Non-Banking Finance Sector. It is an excellent option for people who are looking to save money and lead a frugal lifestyle.
The main purpose of the Nidhi company is to assist in lending money between the core members of the company. In this way, the shareholders are encouraged to save money and invest them within the company. Deposits are then used by the company for its 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.
Advantages of Nidhi Company:
• Limited RBI regulatory compliance
• Less risky preposition and cheaper to borrow
• Limited capital requirement and encourage savings
• Simple Procedure & fewer complications
• Uninterrupted operations
Checklist For A Nidhi Company
• At least 7 members are mandatory to form a Nidhi company. Out of them, 3 should be designated as directors. However, it should acquire a minimum of 200 members within one year of commencement.
• To Register as a Nidhi Company, the company should have a minimum equity share capital of Rs 5 lakhs. 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 registration.
• At least 10% of its outstanding deposits should comprise of un-encumbered 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 un-encumbered 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.
A Nidhi company cannot deal in the following –
• 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
Choose Your Package
Basic
₹ 13999/-
Easy EMI's
Transparent Pricing
7 Digital Signature Certificates
3 Director Identification Numbers
1 Name Approval Application under RUN
Stamp duty on INR 1 Lakh Authorized Capital
Company Incorporation using SPICe
MOA & AOA
PAN
TAN
Standard
₹ 19999/-
Easy EMI's
Transparent Pricing
PAN
TAN
7 Digital Signature Certificates
3 Director Identification Numbers
1 Name Approval Application under RUN
Share Allotment for upto 200 shareholders
25 Copies of MOA
25 Copies Of AOA
10 Copies of Share Certificate
Company Seal
Premium
₹ 25999/-
Easy EMI's
Transparent Pricing
7 Digital Signature Certificates
PAN
TAN
3 Director Identification Numbers
1 Name Approval Application under RUN
Share Allotment for upto 200 shareholders
25 Copies of MOA
25 Copies Of AOA
10 Copies of Share Certificate
Company Seal
Trademark (1 application 1 class) (start ups, proprietorship & small business)
Steps to Form a Nidhi Company?
FAQs On Nidhi Company
How can I expand the operations of my Nidhi Company to different areas?
A minimum of three branches can be opened in a particular district. In case you want to expand outside the district or want to open more than three branches, the Registrar of Companies needs to intimate 30 days prior to their opening.
Should I dissolve my Nidhi Company because it has not gained the necessary numbers of representatives in spite of completing one full year of tenure?
The conditions laid down by the Act says that a Nidhi Company should acquire a minimum of 200 members within its first year of incorporation. However, in case the company is not able to meet the required numbers, it can apply for an extension with the necessary government authorities.
In a Nidhi Company, are members allowed to credit or debit cash to the general fund?
No, members are only allowed to deposit, borrow, or lend funds.
What are the criteria to become a representative of a Nidhi Company?
Any person can deposit, lend, or borrow money through the provisions provided by the Companies Act, 2013. Hence, they can all become members of a Nidhi Company. provided they are not a corporation or a company.
In a Nidhi Company, what should the limit for cash deposit be, for its representatives?
A Nidhi Company can accept deposits not exceeding 20 times of its net owned assets, as per the last audited statements.
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