Nidhi Company Registration in India
A Nidhi Company is a unique type of Non-Banking Financial Company (NBFC) in India, governed by Section 406 of the Companies Act, 2013, and the Nidhi Rules, 2014. It is designed to promote the habit of saving and financial discipline among its members, a Nidhi Company operates exclusively for its shareholders—accepting deposits and providing loans only within this circle. It’s a simple and effective way to foster financial security and mutual benefit within a community.
Register Your
Nidhi Company
Benefits
- Low Capital Requirement
- Encourages Savings
- Member-Governed
- Affordable Borrowing
- Uninterrupted Operations
Benefits of Nidhi Company Registration
- Low Capital Requirement: As per Nidhi Rules, 2014, the minimum capital required is only ₹10 lakhs.
- Encourages Savings: Promotes the habit of saving and thrift among its members.
- Member-Governed: Free from external interference as it is not governed by trusts or committees, making it exclusively managed by its members.
- Affordable Borrowing: Members can borrow at lower interest rates compared to banks, with fewer obligations.
- Uninterrupted Operations: The company continues to function seamlessly even in the event of a member's death, insanity, insolvency, or retirement.
Documents Required for Nidhi Company Registration in India
Basic Checklist
- Three Directors: Minimum three directors, with at least one being an Indian Citizen and Resident.
- Seven Promoters: Minimum seven promoters; can overlap with directors.
- Unique Name: Must include “Nidhi Limited” and be distinct from existing companies or trademarks.
- Paid-Up Capital: Minimum ₹5 lakhs in equity share capital.
- Registered Office: Physical location required with applicable licenses.
Documents for Registered Office
- Recent bank statement or utility bills (within 2-3 months).
- Property tax receipt copies.
- Notarized rental/lease agreement.
- Scanned sale/property deed.
- No Objection Certificate (NOC) from the property owner.
- Documents for Indian Directors/Promoters
- PAN card of shareholders and directors.
- Passport-sized photograph (jpeg/pdf).
- ID proof (Voter ID/Passport/Driving Licence).
- Address proof (Bank Statement/Utility Bill).
Note: Digital Signature Certificate (DSC) is mandatory for incorporation.
Documents for NRI Directors/Promoters
- ID Proof: Passport/PAN card, verified by the Indian Embassy.
- Address Proof (India): Bank Statement/Utility Bill, certified by CA/CS/CMA.
- Abroad Address Proof:
- Hague Convention (HC): Notarized and apostilled.
- Outside HC/Commonwealth: Notarized with certificate authenticated by Diplomatic/Consular Officer.
Documents for Foreign Nationals
- ID & Address Proof: Passport/PAN card.
- Verification Based on Residence:
- Hague Convention (HC): Notarized and apostilled.
- Commonwealth (CW): Notarized by Public Notary.
- Outside HC/CW: Notarized and authenticated by Diplomatic/Consular Officer.
Additional Requirement: Declaration of interest (2%+ shares) in Indian companies.
Requirements for Nidhi Company Registration in India
- Minimum Membership: The company must have at least 200 members or shareholders by the end of its first year.
- Net Owned Funds (NOF): Must exceed ₹10 lakhs.
- NOF-to-Deposit Ratio: Should be maintained at more than 1:20.
- Unencumbered Deposits: At least 10% of the total outstanding deposits must be held as unencumbered term deposits.
- Interest Rates: Can offer up to 12.5% interest on fixed and recurring deposits and 6% on savings accounts.
- Deposit Limit: Allowed to accept deposits up to 20 times the invested amount.
- Compliance: Annual Returns, Income Tax Returns, and Financial Statements must be filed every year.
Register Your
Nidhi Company
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