Nidhi Company

NIDHI COMPANY

A Nidhi Company is a Non-Banking Financial Company (NBFC) that runs without Reserve Bank of India (RBI) license. It is kind of “Mutual Benefit Society” with an intent to develop the habit of savings among its members. It only receives deposits and lend funds from or to its members for their mutual benefit.

Prohibition to carry out certain activities:

business of chit fund, hire purchase finance, leasing finance, insurance
acquisition of securities issued by any body corporate
issuance of securities except equity shares
opening of current account with its members
any other business except borrowing or lending in its own name
pledge any of the assets lodged by its members as security
entering into partnership agreement in its borrowing or lending activities
public advertisement in any form for soliciting deposit
paying brokerage for mobilizing deposits, deployment of funds or granting loans

Key Points

Digital Signature Certificates required for minimum 7 members
Minimum 7 members are required at the time of incorporation
Minimum number of members to reach at 200 within 1 year of its incorporation
Minimum capital requirement is Rs. 5 lakhs
Minimum Net Owned Funds is to reach at Rs. 10 lakhs within 1 year of incorporation
Loans to members are given at lower rate of interest than the market rate
Minimum 3 directors elected among the members of the proposed company
Mandatory issuance of fully paid-up equity shares of minimum nominal value of Rs. 10 each
Allot a minimum of 10 equity shares or shares equivalent to Rs. 100 to each deposit holder
A Minor, trust or a body corporate is not allowed to become a member

Requirements

Distinctive name of the proposed company (at least 2 names for reservation)
Summary of objects of the company
Total amount of authorized and subscribed share capital
Director Identification Number (DIN) of proposed directors, if any
Communication details of directors and subscribers-

• Mobile Number;

• Email-Id

Address of proposed Registered Office and its nearest police station
Corresponding Address, if proposed registered office is not final
Proposed Bank Name

Director and Subscriber Details-

• Personal;

• Occupational;

• Educational Details

Interest of Directors-

• Details of entities where director has interest;

• Details of interest of director in such entity

Amount and number of shares subscribed by each member

Requisite Documents

Document supporting proposed name of the company, if any-
• NOC of Trademark or;

• Authorized letter of concerned entity

Proof of Office Address-
• Title Deeds; or

• Lease/ Rent Agreement and rent receipt; and

• Copy of any utility bill not older than 2 months

NOC from owner/landlord of office premises
Passport size photograph of proposed directors

Proof of Identity and Residence of subscribers and directors (whatever applicable)-
• PAN Card and;

• Passport or;

• Voter Id Card or;

• Driving License or;

• Utility Bills or;

• Aadhar Card

Note

Identity documents should be Self Attested.
We also provide making and renewal of DSC services.
Further, details and documents, if any required, can be called for during the process.
We too provide post incorporation compliances of Nidhi Company.
We also provide Annual Filings of Nidhi Company as a separate service.

Other requisite documents shall be drafted and finalized by our team for the process and will be requested for signing.
Net Owned Funds= Paid up share capital + Free Reserves – (Accumulated Losses + Intangible Assets appearing in last audited Balance Sheet
If no DIN, application shall be made for it.
We also provide services of Filing Income Tax Return and other related services for the company.

Time Duration

After receipt of all documents and information and subject to the MCA (CRC or ROC) response, approx. 5-10 days is taken for incorporation of such company.