Nidhi Company Registration Online

Nidhi Company Registration Online in India is regulated by the Ministry of Corporate Affairs and falls under Section 406 of the Companies Act, 2013. The RBI monitors all financial transactions of Nidhi companies. The main objective of Nidhi company incorporation is to provide financial assistance to its core members through lending money. Members or shareholders are encouraged to save and invest money in the company. The invested deposits are utilized for granting advances or loans and acquiring government-issued stocks, debentures, bonds, securities, and more.

Registering for Nidhi Company of Savings is a wise option if savings is a priority for the members. Register your Nidhi Company online with Filing Buddy and take advantage of saving money and lead a careful business and life.

• Starting a Nidhi company or registering for Nidhi in India is a simple process with less complexity than other finance-related businesses such as NBFCs.
• Nidhi companies promote saving habits among their members or shareholders and facilitate borrowing and lending among them through a mutual benefit society.
• As a member, one can borrow money at a lower interest rate than banks offer, making it advantageous in times of need.
• The borrowing and lending procedures within Nidhi companies are fixed and less complicated than those of banks or informal settings.
• Nidhi finance registration companies provide banking services to rural and remote areas of India that may need access to financing from nationalized banks or NBFCs.

• A minimum of 200 members must be enrolled within one year from the date of its incorporation.
• The company must have an equity share capital of Rs. 10 lakhs or more for Nidhi Limited company registration. The entire equity share capital amount must be paid up, and the Net Owned Funds (NOF) should increase to Rs. 20 lakhs within one year of registration.
• At least 10% of outstanding deposits must have unencumbered term deposits.
• The Net Owned Funds (NOF) to deposits ratio must be 1:20, where 10% of the total deposits should be in a fixed deposit account of any national bank.
• This ratio considers free reserves and equity share capital but excludes accrued losses and intangible assets.

• Nidhi Companies are not allowed to advertise or solicit deposits.
• Nidhi Companies cannot use preference share capital or debentures to raise funds for themselves.
• Nidhi Companies cannot offer any brokerage or incentives for granting loans or mobilizing deposits. However, they can employ individuals with a fixed monthly salary.
• Nidhi Companies can only open a branch or subsidiary once they achieve a profit for three consecutive years.
• Nidhi Companies cannot accept deposits from non-members.
• Members of the Nidhi Company cannot open a current account under the Nidhi Scheme.
• Nidhi Companies cannot engage in hire purchase finance.
• Cannot acquire or insure securities from corporations.
• Engaging in acting as an NBFC in loans or advances.
• Cannot acquire stocks, bonds, shares, securities, debentures, or other marketable securities issued by any local authority or government.

NDH 1

Within 90 days after the end of the First financial year, a Nidhi Company is required to submit a list of its members to the Ministry of Corporate Affairs.

NDH 2

If a Nidhi Company cannot add 200 members in its first financial year, it can request an extension from the Ministry of Corporate Affairs using the NDH 2 form.

NDH 3

A Nidhi Company must file a half-yearly return using the NDH 3 form and other required forms.

Annual Returns with ROC

A Nidhi Company must file an annual return with the Ministry of Corporate Affairs using Form MGT-7.

Profit, Loss, and Balance Sheet

A Nidhi Company must submit its financial statements and related documents using Form AOC-4.

Income Tax Returns

A Nidhi Company must file its annual tax returns for the previous financial year by October 31st like other companies.

The required documents for the registration process of a Nidhi company are:

From Directors and Shareholders:

1. Photographs of Directors and Members.
2. PAN Card of Members.
3. Copy of Rental Agreement or EB Card Copy of the Registered Office.
4. Digital Signature Certificate of Directors.
5. ID proof of Members, such as Aadhar Card or Voter ID.
6. Address Proof of Directors.
7. Director Identification Number or DIN of Directors.

For Registered Office:

1. Rent Agreement, Sale Deed, or Lease Deed.
2. Address Proof of the Registered Office.
3. No-Objection Certificate (NOC) signed by the owner of the property.

Documents needed to be drafted by CA or CS:

1. AOA (Article of Association) of the Company
2. MOA (Memorandum of Association) of the Company

Incorporating a Nidhi company in India involves the following step-by-step process:

1. For company directors, apply for DSC (Digital Signature Certificate) and DIN (Director Identification Number).
2. Choose a unique name and get Name Approval.
3. Draft and file the MoA (Memorandum of Association) & AoA (Articles of Association) with the Registrar of Companies (ROC) along with the subscription statement. These documents must contain the main objective of forming a Nidhi company as a charity.
4. Obtain the Certificate of Incorporation (CIN), PAN, and TAN which typically takes 15-25 days. This certificate declares that a Nidhi company has been created and holds the company's identification number.
5. Open a bank account by submitting the company's MoA, AoA, Certificate of Incorporation, and PAN to the bank. It is advisable to seek professional advice and assistance to complete complex forms and ensure they are filed correctly within the time frame.