Nidhi Company Registration

A Nidhi Company or nidhi company registration is a type of non-banking financial company (NBFC) in India that primarily deals with borrowing and lending money among its members or shareholders. It is governed by the Ministry of Corporate Affairs and follows the Nidhi Rules, 2014. If you wish to register a Nidhi Company in India, here are the general steps involved:

1. Ensure Eligibility:

   – Make sure your company meets the eligibility criteria for Nidhi Company registration. A Nidhi Company should have at least 200 members, Net Owned Funds of at least INR 10 lakhs, and unencumbered term deposits with scheduled commercial banks of not less than 10% of the outstanding deposits.

2. Incorporate a Public Limited Company:

   – Nidhi Companies are registered as public limited companies, so you need to incorporate your company as a public limited company by registering with the Registrar of Companies (ROC). This involves the following steps:

  • Name Reservation:

Reserve a unique name for your company. The name should include “Nidhi Limited” at the end.

  • Draft the Memorandum and Articles of Association:

Prepare the MOA and AOA in compliance with the Nidhi Rules and Companies Act. These documents define the company’s objectives, rules, and regulations.

  • Minimum Capital Requirement:

Ensure that your company has a minimum paid-up capital of INR 5 lakhs.

  • Get Digital Signature Certificates (DSCs):

Obtain DSCs for the proposed directors of the company. These are necessary for online filing.

  • Director Identification Number (DIN):

Each director must have a DIN. Apply for DIN for the proposed directors if they don’t have one.

  • Apply for Incorporation:

Submit the application for incorporation to the ROC. The application should include the MOA, AOA, and other necessary documents. Once approved, you’ll receive a Certificate of Incorporation.

3. File Form NDH-1:

   – Within 90 days of incorporation, you need to file Form NDH-1 with the ROC. This form includes details about your company’s subscribers, directors, and initial shareholders.

4. Create a Fixed Deposit Account:

   – Open a fixed deposit account with a scheduled bank, and deposit at least 10% of your outstanding deposits.

5. Obtain Necessary Approvals and Register with the Regional Director:

   – Apply for the necessary approvals and register your Nidhi Company with the Regional Director.

6. Compliance with Nidhi Rules:

   – Ensure that your Nidhi Company complies with the Nidhi Rules, including lending limits, reserve funds, and restrictions on the acceptance of deposits.

7. Regular Filings and Reporting:

   – Your Nidhi Company will be required to file various annual and periodic returns and reports with the ROC and other regulatory authorities. Ensure ongoing compliance with all statutory requirements.

8. Registration and Certificate Issuance:

   – If there are no oppositions or if they are resolved in your favor, your trademark will be registered. You will then receive a registration certificate.

It is highly recommended that you consult with a professional or company secretary who specializes in company registrations and compliances, as the registration process can be complex, and compliance with the Nidhi Rules is crucial. The above steps provide a general outline, but the specific requirements and procedures may vary, and professional guidance is essential to ensure a smooth and compliant registration process or nidhi company registration.