Incorporate Nidhi Company

Incorporate Nidhi Company

    About Service
A Nidhi companyis a kind of non-banking finance firm. Nidhi Companies can be registered under Section 406 of the Companies Act, 2013. It is governed by the centralgovernment. These companies are established with the pupose of facilitating the lending of money between the core members of the company. The company recieves funds from members and lends to the members who require it, mutually benefiting both the parties. Permanent funds, mutual benefit funds, a mutual benefit company and benefit funds fall under the ambit of Nidhi Companies. However, all lending and borrowing must be in accordance with the rules laid down in Chapter XXIV of Company Rules, 2014. The company must have 200 members within a year of its formation and all the Directors must obtain DIN, DSC at the time of registering of the company.
 Timeline: 30-40 Working days
 Package Inclusions
  • DSC
  • DIN
  • Company Name Approval
  • MOA
  • AOA
  • Format for NOC
  • PAN Application
  • TAN Application
  • Filing of Forms
  • Certificate of Incorporation
 Documents Required
  • DSC
  • DIN
  • MOA
  • AOA
  • PAN Card
  • ID Proof (Voter ID, Passport, Aadhaar Card or DL)
  • Address Proof (Bank Statement/Passbook, Electricity Bill, Telephone Bill or Mobile Bill ( None should be older than two months)
  • Passport size photograph
  • Registered Office Proof:
  • If premises are on rent: Rent Agreement + Utility bill (Electricity bill, Gas bill, Telephone Bill, Water Bill) + Signed NOC
  • If Premises are owned: Ownership Proof + Utility Bill (Electricity bill, Gas bill, Telephone Bill, Water Bill) + Signed NOC
 Process Details
  • Obtaining DSC & DIN
  • Name Approval
  • Preparation of MOA and AOA of the proposed Nidhi Company
  • Making application for incorporation of Company
  • Filing of Forms such as DIR-12 and INC-22 along with other documents to RoC
  • Filing of application for PAN & TAN
  • Once ROC is satisfied, Certificate of Incorporation is granted
 Key Advantages
  • Limited Liability- Shareholders are legally responsible for the debts of the company only to the extent of the nominal value of their share
  • Uninterrupted Existence- The business has separate legal entity and there is continuity even if any of the shareholders die
  • Better Credibility- A producer company enjoys better credibility when compared to unregistered producer organisations. Producer companies are registered and monitored by the Central Government
  • Easy to Manage- The Board of Management of a producer company can be easily changed by filing simple forms with the Registrar of Companies
  • Limited Liability- In a Producer Company, the members are not held personally responsible for the liabilities of the Producer company
  • This is a single office institution governed exclusively by its members, with no external environment
  • This is immensely helpful to people with the middle to lower financial status, by virtue of providing loans at reasonable rates, with minimum documentation and formalities
  • Secured investments are guaranteed by such a mutual benefit company, by dint of its rigid membership structure
  1. What is the minimum number of Directors required to form a Nidhi Company?
    A minimum of 3 directors to register a Nidhi Company.
  2. Is Physical presence required for incorporation of Nidhi Company?
    The entire procedure is online and you don’t have to be present at any office for incorporation.
  3. Can Foreign nationals become a director in a Nidhi Company?
    Yes, after acquiring DIN/DPIN an NRI or Foreign national can become a designated partner in Nidhi Company though atleast one designated partner must be a resident of India.
  4. Who can be a member in a Nidhi Company?
    Any individual or organization can become the member of Nidhi Company including foreigners or NRI’s.
  5. What are the post incorporation requirements?
    Once a Nidhi company is incorporated, within a period of one year from the date of commencement of its activities, it must satisfy the following conditions:
    (a)it must have atleast 200 members/shareholders
    (b)it should have a minimum of Net Owned Funds (NOF) of Rs.10 lakhs
    (c)the unencumbered term deposit must be atleast 10% of the outstanding deposits
    (d)the ratio of NOF to the deposits should not be greater than 1:20.

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