Nidhi Company Registration

Nidhi companies are just like Public Limited Companies but having the word Nidhi before Limited. Nidhi companies are allowed to borrow from its members and lend to its members.

Therefore, the funds contributed for a Nidhi company is only from its members (shareholders).They are created primarily for the motive of cultivating the habit of thrift and savings among their members.

People desirous of carrying on the finance business cannot do so, until they are having the ppropriate license from Reserve Bank of india.

A Person cannot lend or borrow money unless it has the license of NBFC from Reserve Bank India. But getting a license of NBFC from Reserve Bank of India is a very lengthy process and it involves various regulatory requirements that needs to be fulfilled alongwith Minimum Capital requirement of 2 Crore.

But the Government has allowed Nidhi Companies to carry on the business of lending and borrowing within its members.

So, if a person wants to carry on the business of borrowing and lending within its members then he should incorporate a Nidhi Company.

Main Business of Nidhi Company

Nidhi Companies are registered as Public Limited Companies involved in taking deposits and lending money to its member. Nidhi Companies only deal with its members money. RBI has exempted Nidhi Companies from the core provisions of the RBI and other regulations applicable to a NBFC.

Advantages of Nidhi Company

The following are the advantages of Nidhi Company:

  • Easy Formation Process
  • No RBI Compliances required
  • Less Net owned fund requirement
  • Increased savings to members

Regulations Applicable

Ministry of Corporate affairs regulates all the Nidhi Companies. Further, all the Nidhi Companies must need to Comply with Companies Act 2013.

An important point to be noted is that Reserve Bank of India does not regulate Nidhi Companies.

Features of Nidhi Company

  • Public Limited Company
  • No RBI Compliances
  • Need to make at least 200 members within 1 year of its incorporation
  • It can be incorporated with 7 Members and 3 directors
  • Borrowing and lending within members is allowed.

Is there any Approval required from RBI for registration of a Nidhi Company

There is no approval required from RBI for registration of Nidhi Company. One can get Nidhi Company incorporated by making an application of the same with MCA.

Registration Process

Ministry of Corporate Affairs regulates the Nidhi Companies. For incorporating a Nidhi Company, the following process needs to be followed:

  • Reserve Company Name
  • Apply for Directors DSC
  • Prepare Draft documents and get it signed
  • Collect ID and Address Proofs
  • Prepare Relevant Forms and filing with MCA
  • Followup MCA and Approval

Time required for incorporation of Nidhi Company

The process for Nidhi company registration is not much time consuming. A Nidhi Company can be incorporated within a week time.

How Rajput Jain and Associates can Assist

We offer all kinds of Consultancy, Compliances and Registration Services in relation to Nidhi Companies. We have empanelled various experts to provide the expert advisory, Registration and Compliances services for Nidhi Companies.

The services included in Nidhi Company registration are:

  • Name Reservation
  • Preparation of Draft documents for Submission to ROC
  • Preparation of forms for Submission to ROC
  • Drafting of MOA And AOA of Nidhi Company
  • DIN Application (upto 3 Directors)
  • Issuance of COI, PAN TAN
  • DSC of all subscribers
  • Followup department and Approval
  • Advisory relating to Nidhi Company

How Do We Work?

Pick your Company Name

Pay the Registration Fees

Upload Documents

Restrictions on Nidhi Company

  • Shall not able to carry business of Chit Fund, Hire Purchase, leasing finance, insurance or acquisition of securities issued by anybody corporate;
  • Shall not issue preference shares, debentures or any other debt instrument
  • Shall not acquire another company by purchase of securities or control the composition of the Board of Directors.
  • Shall not carry on any business other than the business of borrowing or lending in its own name Shall not accept deposits from or lend to any person, other than its members
  • Shall not pledge any of the assets lodged by its members as security;
  • Shall not take deposits from or lend money to anybody corporate;
  • Shall not issue or cause to be issued any advertisement in any form for soliciting deposit:
  • Shall not pay any brokerage or incentive for mobilising deposits from members or for deployment of funds or for granting loans.
  • Shall not able to provide any current account services

Compare Packages

Rajput Jain & Associates offers the following Cost effective & Easy Company Registration Services packages for its Clients with in schedule days from Anywhere in India:

One Person Company (OPC)

  • One Director
  • One nominee
  • (Free PAN + TAN )

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Pvt. Ltd. (with Indian Promoters)

  • Two Shareholders
  • Two Directors
  • Rs. 1 Lac Capital
  • (Free PAN + TAN )

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Pvt. Ltd. (with Non-Resident Indian Promoters)

  • Two Shareholders
  • Two Directors
  • Rs. 1 Lac Capital
  • (Free PAN + TAN)

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Public Ltd. (with Indian Promoters)

  • Seven Shareholders
  • Three Directors
  • Rs. 5 Lac Capital
  • (Free PAN + TAN)

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NGO/Section 25 Company (with Indian promoters)

  • Two Shareholders
  • Two Directors
  • Rs. 1 Lac Capital
  • (Free PAN + TAN )

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Conversion of Business into Company

  • Proprietorship into Company
  • Partnership Firm into Company
  • Pvt. Ltd. into Public Ltd.
  • Unlisted Public Ltd. into Pvt. Ltd.

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