Nidhi Company Registration in India:
A Comprehensive Guide
Looking to establish a community-focused financial institution? Nidhi Companies offer a unique opportunity to cater to the needs of your local members. This guide explores the registration process and eligibility requirements for Nidhi Companies in India.
What is a Nidhi Company?
A Nidhi Company is a non-banking financial company (NBFC) with specific regulations. It caters to a limited group of members (between 200 and with a minimum of 7 at registration) by accepting deposits and providing loans solely amongst them. Nidhi Companies cannot engage in other financial activities like investment or insurance.
Benefits of Nidhi Company Registration:
Community Focus: Cater to the financial needs of a specific group.
Simpler Regulations: Compared to other NBFCs.
Tax Benefits: Enjoy certain tax exemptions.
Eligibility Requirements:
Minimum Members: At least 7 members at the time of registration and a maximum of 200 members.
Minimum Capital: A minimum paid-up equity share capital of ₹5 lakhs.
Net Owned Funds: Net Owned Funds (NOF) of at least ₹10 lakhs within a year of registration. NOF refers to the company's owned funds after subtracting its total liabilities from its total assets.
Deposit Restrictions: Unencumbered term deposits must make up at least 10% of the total deposits.
Location: Must have a registered office within India.
Registration Process:
Director and Member Details: Gather information for all directors and the minimum of 7 members required for registration.
Company Name Selection: Choose a unique and available name with the suffix "(Nidhi) Limited Liability Company." Use the Ministry of Corporate Affairs (MCA) portal (https://www.mca.gov.in/content/mca/global/en/mca/fo-llp-services/company-llp-name-search.html) for name checks.
Document Preparation: Prepare the required documents, including:
Identity and address proofs of directors and members
PAN Cards of all directors
Proof of registered office address (with NOC if rented)
Memorandum of Association (MoA) outlining company objectives
Articles of Association (AoA) defining internal regulations
Digital Signature Certificate (DSC): Obtain a DSC for each director and member involved in the registration process.
SPICe+ eForm Filing: File the SPICe+ form electronically through the MCA portal. This form integrates company name approval, Director Identification Number (DIN) application, and Nidhi company incorporation.
Payment of Fees: Pay the government fees associated with registration online.
Certificate of Incorporation: Upon approval, you'll receive a Certificate of Incorporation, marking the official formation of your Nidhi Company.
Beyond Registration:
Nidhi Companies require ongoing compliance with specific regulations set by the Ministry of Corporate Affairs (MCA) and the Reserve Bank of India (RBI). Kanoonwise.com offers valuable resources on these regulations and best practices for Nidhi Companies. Consider consulting a professional for comprehensive legal and financial guidance.
Kanoonwise.com: Your Trusted Legal Information Partner!
This guide provides a roadmap for your Nidhi Company registration journey. Kanoonwise.com is dedicated to empowering you with legal knowledge. We encourage you to explore our website for further resources on Nidhi Company regulations, compliance requirements, and connect with legal professionals for tailored advice