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Nidhi Company Registration

Nidhi Company Registration

Market Price : Rs. 40,000

Offer Price : Rs. 28,000

Discount : Rs. 12,000 (30%)

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What is a Nidhi  Company ?

A Nidhi Company is a type of non-banking financial company (NBFC) recognized under Section 406 of the Companies Act, 2013. Its primary objective is to borrow and lend money among its members to promote the habit of saving and thrift. It is a mutual benefit society that caters to its members only.

Salient Features of a Nidhi  Company

  • Mutual Benefit Society: Operates solely for the benefit of its members.

  • No External Involvement: Cannot accept deposits from or lend money to any person other than its members.

  • Regulated by MCA: Governed by the Ministry of Corporate Affairs (MCA) and specific rules under the Companies Act, 2013.

  • Limited Liability: Members’ liability is limited to the extent of their shareholding.

  • No RBI Approval Needed: Does not require a license from the Reserve Bank of India (RBI).

  • Restrictions on Activities: Prohibited from engaging in activities like chit funds, leasing finance, hire purchase finance, and acquiring securities or insurance.

  • Minimum Members: Must have a minimum of 200 members within one year of incorporation.

  • Net Owned Funds: Required to have a minimum of ₹10 lakhs as net owned funds.

  • Ratio of Net Owned Funds to Deposits: Should not exceed 1:20.

    Advantages of Nidhi  Company.

  • Enhanced Bargaining Power: Collective marketing and procurement give producers better bargaining power, leading to better prices and reduced costs.

  • Access to Credit and Resources: Easier access to credit, grants, and subsidies from various government schemes and financial institutions.

  • Economies of Scale: Bulk procurement of inputs and collective sale of produce can lead to economies of scale, reducing costs and increasing profitability.

  • Professional Management: Professional management can be hired to ensure efficient operations and strategic growth of the company.

  • Legal Recognition: Producer Companies enjoy a distinct legal identity, limited liability, and perpetual succession, ensuring stability and continuity.

  • Encourages Savings: Promotes the habit of saving among its members.

  • Limited Liability: Members’ liability is limited to their shareholding.

  • Separate Legal Entity: The company has a distinct legal identity separate from its members.

  • Easy Access to Funds: Facilitates easy access to funds for members at reasonable rates.

  • Simplified Regulations: Lesser stringent regulatory requirements compared to other types of NBFCs.

  • Mutual Benefit: Operates for the mutual benefit of its members, ensuring fair practices.

Procedure of Registration of Nidhi Company

  • Obtain Digital Signature Certificate (DSC): The proposed directors must obtain DSCs.

  • Obtain Director Identification Number (DIN): Apply for DIN for the proposed directors.

  • Name Approval: Submit an application for name approval through the Ministry of Corporate Affairs (MCA) portal.

  • Prepare Documents: Draft necessary documents, including the Memorandum of Association (MOA) and Articles of Association (AOA).

  • File Incorporation Form: Submit the incorporation form (SPICe form) along with the required documents to the Registrar of Companies (ROC).

  • Certificate of Incorporation: Upon verification and approval, the ROC issues a Certificate of Incorporation.

  • Commencement of Business: File Form INC-20A (Declaration for the commencement of business).

  • Apply for Nidhi Status: Within one year, apply for Nidhi status by submitting Form NDH-4 along with the necessary documents showing compliance with the Nidhi Rules, 2014..

Documents Required for Registration of Nidhi  Company

  • Identity Proof of Directors and Members: PAN card, passport, driving license, or Aadhaar card.

  • Address Proof of Directors and Members: Bank statement, electricity bill, or telephone bill.

  • Proof of Registered Office Address: Utility bill, rent agreement, or property ownership document along with a No Objection Certificate (NOC) from the owner.

  • Memorandum of Association (MOA) and Articles of Association (AOA).

  • Affidavit by the directors on Form INC-9.

  • Declaration by each subscriber to the MOA on Form INC-15.

  • **Declaration by a professional certifying compliance with the requirements.

Corporate Verdict: Your Partner in Nidhi Company  Registration

Corporate Verdict is a team of experienced professionals dedicated to assisting entrepreneurs in establishing Nidhi Companies effectively and affordably. We understand the complexities of the registration process and ensure a seamless experience for our clients. Our services include:

  1. Expert Consultation: Providing detailed guidance on the feasibility and benefits of forming an Nidhi Company.

  2. Documentation Assistance: Assisting in the preparation and filing of necessary documents.

  3. Compliance Support: Ensuring your Nidhi Company meets all regulatory requirements.

  4. Affordable Services: Offering cost-effective solutions without compromising on quality.

By choosing Corporate Verdict, you can rest assured that your Nidhi Company registration will be handled efficiently, allowing you to focus on growing your business.

For more information or to start the registration process, visit our website or contact our team today!

Have any Questions?

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