Nidhi Company

Nidhi Company is classified as NBFC (a Non-Banking financing company) which is registered under section 406 of companies Act, 2013, In India it is created for cultivating the habit of thrift and saving among its members. The best feature of that make differences Nidhi Company from other companies is NBFCs is that it can “Give” and “Take” “loan” and “Advances” to members (shareholder) for benefits of its members. Though Nidhi Company is mainly created to create saving habits from its members.

Overview

Key Features

  • The minimum number of member must be At least 200 within 12 months of company registration.
  • Nidhi Company cannot carry any type of such transaction hire acquisition of securities issued by any corporation, purchase finance, leasing finance, insurance, and chit fund.
  • “Nidhi Company” does not fall under purview of RBI hence it does not require any special Approval or license from RBI to operate loan business.
  • It is empowered to issue debentures, preference shares or some other debt instrument in any form.
  • Nidhi Company cannot accept deposits or give advance to any outsider or external individual for corporation.
  • Nidhi Rules 2014 Act and Companies Act 2013 act as governing bodies which regulates the function and operations of “Nidhi companies” in India.
  • Nidhi companies it not entitled to “vehicle finance business or microfinance business” in India.

Compliances for Nidhi Company Registration

FormComplianceDue Date
Form NDH-1(Return of Statutory Compliance) – These forms contain all the information regarding members, deposits, loans, reserves, etc., for full financial years.
E-Form GNL-2 for the submission of the documents with the Registrar
Within the 90 days from the closure of the Financial Year, along with fees.
Form NDH-2This Form is for the extension of time and this Form is filed if:
· The Company fails to add at least 200 members within 120 days of incorporation.
· Failure to maintain the NOF to deposit ratio of 1:20.
This Form must be filed with the Regional Director within 90 days from the closure of the financial year, along with the prescribed fees.
Form NDH-3This Form is used for Half-yearly returns and it should be filed with the Registrar of Companies.This Form should be filed within 30 days from the conclusion of the half-year.
Form NDH-4This Application is for the declaration as Nidhi CompanyFor a New Nidhi Company: Within the duration of 60 days post expiration of 1 year from the date of incorporation.
For Existing Nidhi Company: Within a time of 120 days from the commencement dates as per the Rules 2022.
NDH-5This Form is the format of advertisement to be given while closing branch.A Nidhi Company in India shall not close any branch unless it:
· Publishes an advertisement in vernacular language in the place where it conducts business at least 30 days prior to such closure.
· A copy of such advertisement or notice informing such closure of the branch on the notice board of Nidhi for a period of at least 30 days from the date on which the ad was published under clauses (a) & (c) gives an intimation to the Registrar within 30 days of such closure.
AOC-4Filing of Financial StatementsWithin 30 days from the date of the Company's AGM.
MGT-7Annual return along with a list of all the members serving the CompanyWithin 60 days of the AGM.
ITR-6Income Tax ReturnBy 30th September
What is NIDHI COMPANY ?
Nidhi Company is an NBFC (Non-Banking Financial Company). Nidhi in simple terms means a company which is formed with the object of cultivating the habit of thrift and savings amongst the members and receiving deposits from and lending to the members for their mutual benefits.

Documents Checklist

Documents required for incorporation of Section 8 companies.

The main motive of establishing Nidhi Company is to encourage member to save so that they can fulfill their own financial requirement which arises them time to time. So that they become self-sufficient and can fulfill all future expenses that may come up. And other benefits of registering are mentioned below.

There are several more advantages to forming a Nidhi company. Few of them are mentioned below:

1. Documents required for Incorporating Section 8 Company is as follow:

  • PAN card self-Attested copy
  • Aadhar card self-Attested copy
  • Photograph of the proposed director

2. ID proof of proposed Directors and members (anyone):

  • Passport self-Attested copy
  • Voter’s ID self-Attested copy
  • Driving License self-Attested copy

3. Address proof of proposed members and directors (anyone):

  • Telephone bill
  • Mobile Bill
  • Bank statement
  • Electricity bill

4. Address proof for the principal place of business of the proposed company (anyone)

  • Utility bill like telephone bill, electricity bill, gas bill, water bill
  • Rent agreement with rent slip
  • Proof of ownership.

Procedure for Incorporation

  • Fill the application and Submit to our executive with proper Documents and Make payment.
  • Company Name Approval within 3 working days.
  • Making Digital Signature certificate for director 1 working days.
  • Documents preparing for incorporation within 2 days.
  • Applying for company incorporation 8 days.
  • Congratulation your Nidhi Company has been incorporated.

Benefits

Benefits of Starting a Nidhi Company

The main motive of establishing Nidhi Company is to encourage member to save so that they can fulfill their own financial requirement which arises them time to time. So that they become self-sufficient and can fulfill all future expenses that may come up. And other benefits of registering are mentioned below.
There are several more advantages to forming a Nidhi company. Few of them are mentioned below:

A. Less Regulations.

RBI imposed a very few Guidelines in Nidhi companies. Nidhi companies are governed under the Nidhi rules 2014 and its activities and operations are controlled by central government.

B. Limited Liability.

In case if Nidhi Company suffers from any financial distress in course of business then the personal property of directors and members are not at risk. Liability of shareholders and Directors are limited.

C. Better Credibility

Nidhi companies enjoys the benefit of better credibility based on trust cooperative or NGOs.

D. Easy Access of Public funds

The from from Nidhi companies are Cheaper than banks and Other NBFCs companies for it’s shareholder. And the process for taking loan from this Banks And are easier and quicker.

E. Ease of fund.

For Inviting deposits from general public, Nidhi company is the cheapest wa. We just need to take them as registered member.

F. Easy Registration Process.

The process of registering a Nidhi company is very easy and simple with setupfilings you can register your Nidhi Company. You will not have to take seprate license from RBI. Simply we have to register a public limited company with MCA.

G. Simple processing

Lending and Borrowing to know person which belongs to same group of people is much less complicated than dealing with bank where loan procedure is very hassle and fixed.

H. Separate entity.

Nidhi Company can purchase assets and Lend to other, Nidhi company can be sued or sue other, It has separate legal entity.

Event-Based Compliances of a Nidhi Company

Following are some Event-Based Compliances of a Nidhi Company that should be followed when there is any change in the Nidhi Company’s structure which are non-periodical:
  • Any change in the Company's name
  • Removal of Director or Resignation/Appointment of a Director;
  • Transfer of Share;
  • Appointment of the KMP (Key Managerial Personnel);
  • Increased the authorised capital of the Company;
  • Removal of Auditor or Resignation/Appointment of an Auditor;
  • Any changes in the Company's objective;
  • Change in Registered Office Address;
  • Any other changes that are event-based.

Packages

Choose your package & proceed to pay

BASICSTANDARDPREMIUM
2 DSC 2 Years validity 2 DSC 2 Years validity3 DSC 2 Years validity
2 DIN Number for Director2 DIN Number for Director2 DIN Number for Director
Name Approval for companyName Approval for companyName Approval for company
Authorized capital of 10 LakhAuthorized capital of 10 LakhAuthorized capital of 10 Lakh
Incorporation feesIncorporation feesIncorporation fees
PAN And TAN of CompanyPAN And TAN of CompanyPAN And TAN of Company
Incorporation KITIncorporation KITIncorporation KIT
Goods And Service Tax (GST)Goods And Service Tax (GST)
Udyam RegistrationUdyam Registration
Import Export code (IEC)
ISO Certification 3 Years Validity

Process

Get the process done in 5 Easy Steps

1. Choose the package and fill the form.

2. Make Payment

3. Our Executive will get in touch with you and verify the details.

4. Filing the Application to concern department

5. Congratulations your Work is complete

FAQ's

1. What is average timing to register Nidhi Company?

Answer: On Average its takes15 working days to Register Nidhi company In India.

2. Is It necessary to use word Nidhi company in the name of company?

Answer: Yes, It’s necessary to use, However the Word “mutual benefits?” can also be used in the place of Nidhi Company.

3. What is minimum Number of members required to register Nidhi Company?

Answer: In Indhi Company Minimum 3 Directors and minimum 7 Shareholders are required for Registration of Nidhi Company in India.

4. What is Validity of Certificate of Incorporation?

Answer: A Certificate of Incorporation issued by Registrar of company and its valid till lifetime.

5. Can Nidhi Company Issue Preference share and debt securities?

Answer: Nidhi company are not allowed to issue preference share and debt securities.

6. What shall be maximum tenure of director in Nidhi Company?

Answer: A Director in Nidhi Company can hold his office Period of 10 consecutive year. After 10 years he can again be appointed has director only after two year of his resignation.

7. What should be the Main Business object of Nidhi Company?

Answer: The Main Focused primary business of Nidhi Company is to accepts deposits and lending money to their registered members. The Company should focus to increase the habit of saving among members.

8. Nidhi Company can carry any other business activity other than Lending or Borrowings?

Answer: No, Nidhi Company are not allowed to carry any other business activities other than lending Money and Borrowing Money.

10. Who Regulates Nidhi Company in India?

Answer: Ministry of Corporate Affairs by provision of Nidhi Rules 2014 Acts has regulatory authorities in India.

10. Can OPC Company Raise Funds?

Answer: An OPC Company can raise funds through venture capital and financial institutions or only after converting into Private Limited Company.

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Call us at+91-7738877316

Email us support@setupfilings.com