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NIDHI COMPANY REGISTRATION

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.


NIDHI COMPANY IN INDIA



1. Benifits of starting a Nidhi Company in INDIA


1. Low Rates of Interest
2. Secured Investments
3. Clear Objectives for easy donations and loans
4. Exemptions and Privileges under Companies Act, 2013
5. Least intervention of R.B.I
6. Very Easy formation
7. Cost efficient registration
8. No RBI Regulations – less compliance
9. More Certainty in Nidhi company

2. Pre-Registration Requirements for Nidhi Company


1. Minimum 7 Members.
2. Minimum 3 Directors.
3. No Minimum Capital Requirement.
4. No Preference Shares allowed to issue.
The object of the company shall be receiving deposits from and lending to its members only for their mutual benefits.

3. Post-Registration Requirements for Nidhi Company


1. Minimum 200 Members within 12 months of registration
2. A Nidhi company must add at least 200 members to comply with this requirement of law.
Further, it has to maintain this during the course of time. If the total members falls less than 200 at anytime thereafter, it will leave the company at default.

4. Post-Registration Requirements for Nidhi Company


3. Minimum Net Owned Fund (Paid Up Share Capital + Free Reserves) of 10 lakh or more.
4. Unencumbered term deposits of not less than 10% of the outstanding deposits.
5. A Nidhi Company shall not admit a body corporate, trust or minor as a member.
6. Net owned funds to Deposits should 1:20, if you have net owned funds of 10 lakh,then your total deposit limit would be ₹ 2 Crore.

5. Share Capital and Allotment requirement


Every Nidhi shall issue [fully paid up] equity shares of the nominal value of not less than ten rupees each.
No service charge shall be levied for issue of shares.
Every Nidhi shall allot to each deposit holder at least a minimum of ten equity shares or shares equivalent to one hundred rupees.
Provided that a savings account holder and a recurring deposit account holder shall hold at least one equity share of rupees ten.

6. No Nidhi shall


(a) carry on the business of chit fund, hire purchase finance, leasing finance, Insurance or Acquisition of securities issued by any body corporate.
(b) issue preference shares, debentures or any other debt instrument by any name or in any form whatsoever.
(c) open any current account with its members.
(d) accept deposits from or lend to any person, other than its members.


PROCEDURE OF REGISTRATION OF NIDHI COMPANY

Step 1 : Name Approval in ‘RUN’ facility


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.

Step 2 : Obtaining Digital Signature Certificate (DSC)


The proposed Directors who may also be the Promoters/Applicants of Nidhi Company have to obtain Class 2 DSC.


Step 4 : Approval and Certificate of incorporation

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.

Step 3 :File form SPICe 32 with Attachments


1. MOA & AOA
2. PAN Card of subscribers
3. Id Proof of First Directors
4. Address Proof of First Directors
5. Address Proof of Registered Office (Rent Agreement/Sale Deed)
6. Latest Utility Bill of Registered Office (Electricity/Telephone/Gas)
7. NOC of Owner of Registered Office
8. Consent and Declaration from 1st Director in form DIR-2




ANNUAL COMPLIANCE FOR NIDHI COMPANIES


NDH-1: Return of Statutory Compliances


Nidhi Company shall file a return of statutory compliances in Form NDH–1 within 90 days from the closure of the financial year with the Registrar duly certified by a Company Secretary in practice or a Chartered Accountant in practice or a Cost Accountant in practice.

NDH-2: Apply to the Regional Director for extension of time


If the company is not complying with the minimum member criteria, it shall within 90 days from the close of the first financial year, apply to the Regional Director in Form NDH -2 for extension of time and the Regional Director may consider the application and pass orders within 30 days of the receipt of the application.

NDH-3: Half yearly return with the Registrar


Nidhi company shall file half yearly return with the Registrar in Form NDH-3 within thirty days from the conclusion of each half year duly certified by a company secretary in practice or chartered accountant in practice or cost accountant in practice.



REQUIRED DOCUMENTS FOR NIDHI COMPANY REGISTRATION

1. Copy of PAN of Directors and Shareholders.

2. Copy of ID Proof of Directors and Shareholders. (Voter ID, AADHAR, Driving License, Passport)

3. Copy of Address Proof of Directors and Shareholders (Bank Statement/ Electricity bill/ Mobile bill/ Telephone Bill)

4. Passport size Photographs.

5. Property Ownership Documents of Registered office premises:

6. If property is owned: Electricity bill, Ownership Documents and NOC (if required)

7. If property is rented: Electricity bill , Rent Agreement and NOC