Online Nidhi Company Registration in India

Description

A Nidhi Company is a type of Non-Banking Financial Company (NBFC) governed by the Companies Act, 2013. Its primary purpose is to promote savings among its members and provide loans to them at lower interest rates compared to traditional banks. Unlike other NBFCs, Nidhi companies are restricted to dealing with their members only and do not require a Reserve Bank of India (RBI) license to operate. This makes them a popular choice for people looking to form mutual benefit societies.

With advancements in technology and digital infrastructure, registering a Nidhi Company has become a streamlined process. Entrepreneurs can now apply for Nidhi Company registration online, making the entire process more efficient and accessible.

What is a Nidhi Company?
A Nidhi Company operates as a mutual benefit society, helping its members save money and access funds in times of need. It accepts deposits from members and provides loans to them based on mutually agreed-upon terms. Nidhi companies primarily cater to small financial needs and are not allowed to engage in external financial services such as chit funds, insurance, or hire-purchase activities.

Benefits of Registering a Nidhi Company
Limited Liability Protection: The shareholders and directors of a Nidhi Company enjoy limited liability, meaning their personal assets are protected from the company's debts or losses.

No RBI Licensing Requirement: Unlike other NBFCs, Nidhi companies do not require an RBI license to operate, as they are exempt from certain regulations. This reduces compliance burdens and simplifies the registration process.

Encouragement of Savings: Nidhi companies encourage a habit of thrift and savings among their members by providing safe and regulated means of depositing money and taking loans.

Low Interest on Loans: The interest rates on loans provided by Nidhi companies are generally lower than those offered by traditional banks, making it an attractive option for members.

Fewer Compliance Requirements: Compared to other types of companies, Nidhi companies have fewer compliance obligations and regulatory filings.

Eligibility Criteria for Nidhi Company Registration
To register a Nidhi Company, the following criteria must be met:

Minimum 7 Shareholders: The company must have at least seven shareholders at the time of registration.
Minimum 3 Directors: At least three directors are required, who can also be shareholders.
Minimum Capital Requirement: The company must have a paid-up equity share capital of at least ₹5 lakhs.
No Preference Shares: Nidhi companies are not allowed to issue preference shares.
Steps for Online Nidhi Company Registration
The registration process for a Nidhi Company can be completed online through the Ministry of Corporate Affairs (MCA) portal. The steps include:

Obtain Digital Signature Certificate (DSC): All directors must obtain a DSC, which is required for filing forms online.

Apply for Director Identification Number (DIN): Each director must have a DIN, which can be applied for during the registration process.

Name Approval: The company name must be unique and follow MCA naming guidelines. You can apply for name approval through the RUN (Reserve Unique Name) service.

Drafting of Documents: Prepare essential documents, including the Memorandum of Association (MOA) and Articles of Association (AOA), which outline the company’s objectives and rules of operation.

File Incorporation Forms: Complete and submit the incorporation form (SPICe+) with the necessary documents, including ID proofs, address proofs, and director details.

Receive Certificate of Incorporation: Once the Registrar of Companies (ROC) approves the application, a Certificate of Incorporation is issued, officially establishing the Nidhi Company.

Post-Incorporation Compliance: After incorporation, the company must adhere to certain requirements, including filing for PAN and TAN, opening a bank account, and ensuring that it has at least 200 members within one year of registration.

Post-Registration Compliance
Once registered, a Nidhi Company must comply with several post-registration requirements, such as:

Maintaining a minimum of 200 members within the first year.
Filing statutory forms like NDH-1, NDH-2, and NDH-3 regularly.
Ensuring the Net Owned Funds (NOF) to deposits ratio remains 1:20.For more information visit https://www.registerkaro.in/