Monday, 21 May 2018

Procedure and Requirements for Nidhi Company Registration


Chapter XXVI, Section 406 of The Companies Act, 2013 states that ‘Nidhi’ is a company incorporated with the object of developing the habit of savings and savings amongst its members. It also involves receiving deposits from, and lending to, its members exclusively. Its primary object is the mutual benefit of its members.


Nidhi Company is incorporated as a Public Company, hence the rules and regulations of Companies Act, 2013 are applicable, regarding Nidhi Company registration, functioning, and compliance.
Since Nidhi Companies fall under a class of NBFC, RBI provisions of interest rates payable on deposit are applicable to them. RBI governs its activities of deposit-taking and issues direction regarding the same.

What are Mandatory Requirements for Nidhi Company Registration?
Following should be adhered to for Nidhi Company Registration:
  1. Minimum of 7 shareholders
  2. Minimum of  3 Directors
  3. A Minimum Capital of Rs. 5 Lacs
  4. Minimum Net Owned Fund of Rs.10 Lacs

What is the Procedure of Nidhi Company Registration?
     1.     A Nidhi company may be incorporated with a minimum paid-up capital capped at 5 lakhs.
    2.   The company has to get the name approved by a public limited company; additionally, it needs to add word ‘Nidhi Limited’.
    3.   Next step of the Nidhi Company registration is the application of DSC (Digital Signature Certificate) for the proposed Director for which the following are required:
a.    Address Proof
b.    Aadhar card
c.    PAN card
d.   Photographs
e.    Email ID
f.     Phone Number
    4.   SPICe form (INC-32) is the next step, which covers Name Reservation, Allotment of Director Identification Number (DIN), Incorporation of New Company, Allotment of PAN and Allotment of TAN along with MoA (INC-33) and AOA (INC-34).
     5.   A Declaration with a digital signature of Professional (Chartered Accountant/ Company Secretary/ Cost Accountant/ Advocate) is required to file SPICe form (INC-32).  The Professional has to declare that all information furnished in the form is correct. The membership number and certificate number has to be mentioned.



What Documents are Required for Nidhi Company Registration?
Following documents are required for the Nidhi company registration:
    1.   Memorandum of Association & Articles of Association
    2.   Affidavit and declaration by the first subscriber(s) and director(s)
    3.   Proof of office address
   4.   Rent agreement of the premise and NOC Form the landlord if the office premise is rented.
    5.   Copies of utility bills that are not older than two months
    6.   From All Directors and Shareholders
a.    PAN Card of all directors and shareholder
b.    Latest Bank Statement/Telephone or Mobile Bill
c.    Voter's ID/Passport/Driver's License
d.   Passport-sized photograph of all directors and shareholder
e.    Scan copy of Signature (signature should same as on PAN Card)
f.     Scanned copy of Notarized Rental Agreement

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