Nidhi Company

WHAT IS NIDHI COMPANY ?

1. A Nidhi Company is a specific type of company operating in the Indian non-banking finance sector, regulated under section 406 of the Companies Act, 2013.
2. These companies primarily engage in the practice of borrowing and lending money exclusively among their members.
3. Nidhi Companies are permitted to accept deposits from their members and subsequently lend these funds to their members for their mutual benefit.

What is a Nidhi Company, and why should I consider registering one in India?
A Nidhi Company is a type of non-banking financial institution (NBFC) in India that primarily deals with lending and borrowing among its members. It is regulated by the Ministry of Corporate Affairs (MCA) and is governed by the Companies Act. Nidhi Companies are typically formed for the purpose of cultivating thrift and savings habits among its members.

Can I register a Nidhi Company on my own, or do I need a consultant's assistance?
While it is possible to register a Nidhi Company on your own, it is highly recommended to seek the assistance of a professional consultant who is well-versed in company registration procedures and legal compliance. This will help ensure that you adhere to all regulatory requirements and avoid potential pitfalls.

What are the key steps involved in registering a Nidhi Company in India?
The registration process for a Nidhi Company typically involves the following steps:

1. Obtaining Digital Signature Certificates (DSCs) for the directors and subscribers.
2. Applying for Director Identification Numbers (DINs) for the directors.
3. Reservation of a suitable company name.
4. Drafting the Memorandum of Association (MOA) and Articles of Association (AOA).
5. Filing the incorporation application with the Registrar of Companies (ROC).
6. Obtaining the Certificate of Incorporation from the ROC.

What are the minimum requirements for starting a Nidhi Company in terms of capital and members?
As of my last knowledge update, the minimum requirements for starting a Nidhi Company include:

1. Minimum paid-up equity share capital of Rs. 5 lakhs.
2. At least 7 members.
3. No Minimum Net Owned Funds (NOF) requirement.
4. Each member must contribute a minimum of Rs. 1,000 to become a member.
5. Please verify these requirements with the latest regulations, as they may have changed.

What are the compliance and regulatory obligations for Nidhi Companies after registration?
Nidhi Companies must adhere to various compliance and regulatory obligations, including but not limited to:

1. Maintaining a minimum number of 200 members within a year.
2. Accepting deposits and lending only to members.
3. Complying with limits on lending rates and borrowing rates.
4. Filing annual financial statements and other required documents with the ROC.
5. Holding annual general meetings and maintaining proper records.

How long does it typically take to register a Nidhi Company in India?
The timeline for Nidhi Company registration can vary depending on factors like the efficiency of government processing and the completeness of your application. Generally, it can take 20-40 days or more from the date of application to receive the Certificate of Incorporation.

What are the ongoing costs associated with maintaining a Nidhi Company?
The ongoing costs of maintaining a Nidhi Company include expenses related to compliance, annual audits, ROC filing fees, and other operational expenses. These costs can vary depending on the size and operations of your Nidhi Company.

DOCUMENTS REQUIRED

1. Id proof of all the designated directors and shareholders (Aadhaar Card/ Voter identity card)
2. PAN card of all the directors
3. Address proof of all the directors/shareholders
4. Passport size photographs of all the directors
5. Copy of Rent agreement (If rented property)

Starting a Nidhi Company involves several steps and processes. Here's a professional outline of the steps generally followed to register a Nidhi Company: