Nidhi Company

Why Nidhi Company?

Nidhi can easily provide loans and raise funds as it accepts deposits from its members.
Nidhi works under the principle of Mutual Benefit.
After the registration, Nidhi doesn’t ask to associate with any external management.
Securing the status of Limited Liability, Nidhi is independent to its directors and members.
Nidhi obeys the demands of NBFC’s, as it works with a similar principle.

Nidhi Company ask for?

• To integrate into Nidhi Company, it is compulsory to have a minimum of 7 members of which 3 of them should be the designated members.
• Within 1 year of launch, the company should promote its strength to a minimum of 200 members.
• It is very basic to have a minimum share capital of RS.5 lakh.
• Also, within 1 year, the Net Owned Funds (NOF) must be increased to Rs 10 lakhs.
• In India, under the Companies Act 2013 it is mandatory to register first in a Limited Company.
• Accepting and contributing money in form of loans and advances among their members to generate the mode of investment is a necessary part to mention in the Memorandum of Association.

Documents to register a Nidhi Company

To Be Submitted By All Directors

1. DIN-Directors Identification Number
2. PAN number of the shareholders as well the Directors
3. Residential Proof of the shareholders and directors
4. Passport-Sized photo
5. Identity Proof – Aadhar Card/Voters ID/Driving license
6. Rent agreement or lease agreement of the Registered office
7. If the office is owned, then ownership information or the registered office address must be provided
8. NOC if required
9. MOA
10. AOA
11. MCA form

3 Step Registration

1. Acquiring (DSC) Digital Signature Certificate and Director Identification Number (DIN) of the applicants.
2. Applying MCA for Name Reservation
3. Documentation process and approval from ROC.

Within 15 days a certificate will be issued by the registrar.

Nidhi Company is not allowed for:

1. Chit fund business, hire purchase finance, Acquisition/insurance of securities issued by any corporate
2. Accept and lend money to non-members
3. Open current accounts with its members.
4. To lend and accept money from corporate
5. Mortgage asset submitted by the members as security
6. Making advertisements requesting investment
7. Collection and redistribution and granting loans and funds by paying for intermediary and encouragement

Recent Updates

17th March: Stringent compliance norms for Nidhi Companies
To protect the interest of investors, the Ministry has advised them to verify a Nidhi Company status before pumping in money. They can verify it from the notification in the official gazette.

21st March: Time-frame for filing Form NDH-4
To enhance transparency and investor-friendliness, Nidhi companies are now instructed to follow the time frame for applying in Form NDH-4. In case of non-compliance, a Nidhi Company will not be allowed to file Form No SH-7 and Form PAS-3