NIDHI Company

Get Started – From Rs. 56,000/- (incl. Govt. Fees)

*Prices are higher in Madhya Pradesh, Kerala and Punjab

Nidhi Company means a company which has been incorporated under The Companies Act, 2013, as a Nidhi with the object of

• Cultivating the habit of thrift and savings amongst its members
• Receiving deposits from, and lending to, its members only, for their mutual benefits.

Nidhi companies are allowed to take deposit from its members and lend to its members only. Initially the Company will be registered only as a public limited company with the above mentioned objectives. Within a period of one year from the commencement, the company should fulfill certain criteria to attain the status of Nidhi. Since Nidhis deal only with their shareholders, RBI has exempted the notified Nidhi’s from the core provisions of the RBI Act and other directions applicable to NBFCs.

General Restrictions:

Nidhi Companies are prohibited from

• Carrying on the business of chit fund, hire purchase finance, leasing finance, insurance or Acquisition of Securities issued by anybody corporate.
• Issue any preference shares, debentures or any other debt instrument by any name or in any form whatsoever.
• Open any Current Account with its members.
• Acquire another company by purchase of securities or control the composition of the Board of Directors of any other company in any manner whatsoever.
• Carry on any business other than the business of borrowing or lending in its own name.
• Accept Deposits from or lend to any person, other than its members.
• Pledge any of the assets lodged by its members as security.
• Take Deposits from or lend money to anybody corporate.
• Issue or cause to be issued any advertisement in any form for soliciting deposit
• Pay any brokerage or incentive for mobilizing deposits from members or for deployment of funds or the granting loans.
• A minor shall not be admitted as a member of Nidhi

Requirements for Incorporation of NIDHIS::

• Should be a Public Limited Company with minimum paid up capital of Rs. 5 lakhs.
• The object of the company shall be cultivating the habit of thrift and savings amongst its members, receiving deposits from and lending to its members only for their mutual benefits.
• It shall have the words ‘Nidhi Limited’ as part of its name.

Requirements After Incorporation of NIDHIS:

Every Nidhi company, post incorporation and within a period of one year from the commencement, should meet the following criteria to attain the status of Nidhi.

• Minimum number of members should be 200.
• Net owned funds shall be Rs.10,00,000/- or more.
• Ratio of net owned funds to deposit shall be not more than 1:20.
• Unencumbered term deposits of not less than 10% of the outstanding deposits.

Net owned funds’ means the aggregate of paid up equity share capital and free reserved as reduced by the accumulated and intangible assets appearing in the last audited balance sheet).

If the Nidhi Company satisfies the above conditions required for operating as a Nidhi Company, the company shall within 90 days from the close of the first financial year after its incorporation and where applicable, the second financial year, file a return of statutory compliances in Form NDH-1 duly certified by a practicing Chartered Accountant along with the requisite fees.

In case at the end one year from commencement the Nidhi Company is not able to meet the above requirement, the Company may within 30 days from the close of the first financial year, apply to the Regional Director in Form NDH-2 for extension of time.

If even after the second financial year the Nidhi Company is not able to meet the requirements for a Nidhi Company, then the Nidhi Company shall not accept any further deposits from the commencement of the second financial year till it complies with the provisions for operating as a Nidhi Company and be liable for penal consequences.

Startup Process Time:

AuditNeeds can incorporate a Nidhi Company in any part of India in 20 to 25 working days, subject to ROC processing time and timely submission of relevant documents by the Client.

Inclusion:

• DIN for 3 Directors.
• Digital Signature.
• Name Approval
• Drafting of MoA & AoA.
• Preparation of other documents and declarations required for incorporation.
• ROC and Government registration fees for DIN, DSC and Incorporation.
• Government Stamp duty fees.
• Company PAN card & TAN card

Minimum Requirement for NIDHI Company:

• Minimum 7 Shareholders
• Minimum 3 Directors
• Minimum Rs. 5 Lakh Share Capital

Documents Required for NIDHI Company:

• Copy of PAN card of all directors.
• Copy of Voter’s ID / Passport / Driver’s License / Aadhar Card of all directors. (Any 2)
• Passport sized photograph of all directors.
• Copy of latest bank statement / telephone or mobile bill / electricity bill in the name of all directors (Should not be older than 40 days).
• Copy of Rental agreement of office address.
• Copy of latest electricity bill and tax receipt in the name of landlord of office address.