The Nidhi companies in India are established among their members to cultivate the habit of thrift and saving. Nidhi companies may borrow and lend to members of their organizations. The funds contributed to a company in Nidhi are therefore exclusively from its members (shareholders). Nidhi companies are therefore mainly used for a group of persons to cultivate a savings habit. In southern India, Nidhi companies are very common. In comparison to NBFC, it is not mandatory for a Nidhi business to receive an RBI permit, and thus easy to integrate it. Initially have a public limited partnership which would have the last term of its name, "Nidhi Limited." Second, a separate application for the grant of Nidhi company status is submitted before the ROC within one year of its incorporation, when the number of shareholders is 200. The company can not announce that the company requests deposits from the general public to keep its credits to and from its members its activities.
The object of the company shall be receiving deposits from and lending to its members only for their mutual benefits.
The Applicants are required to file name availability in RUN facility of MCA portal. Every Company proposed to be incorporated as a “Nidhi” shall have the last words ‘Nidhi Limited’ as part of its name. Now, one doesn’t require digital signature of applicant for name availability.
It will take 15-20 days to get the incorporation certificate of Nidhi Company once all the documents have been filed and registration fee and stamp duty paid. Incorporation certification is a proof that all the formalities regarding the incorporation have been complied with.
The proposed Directors who may also be the Promoters/Applicants of Nidhi Company have to obtain Class 2 DSC.
After the name approval, File form SPICe 32 with following attachments for incorporation of Nidhi Company.