We help to incorporate a Limited Company with “NIDHI” as its name. Further, the company can seek Nidhi License after it has 200 shareholders and a paid-up capital of more than ten lacs. We will assist you through the entire process of registration.
We are a professional consulting firm specialising in company registration, taxation, accounting, payroll, compliance, and intellectual property rights (IPR) services to assist new and existing businesses in India. We provide our professional services at a reasonable fee, explaining the eligibility, process, and documents required for setting up and maintaining a business. We also prepare and file necessary applications with relevant government agencies such as the Registrar of Companies (ROC) and the Income Tax Department. We do not directly provide government documents or represent ourselves as a government agency.
A Nidhi company is effectively a Non-banking Financial Company or NBFC which accepts monetary deposits from its members and lends them money against tangible collaterals like gold, property mortgage, etc. Rule 3(1)(da) of the Nidhi Rules, 2014, drafted in pursuance of Sections 406 and 469 of the Companies Act, 2013, defines a Nidhi Company, as a company which has been incorporated with the primary object of cultivating the habit of thrift and savings amongst its members, receiving deposits from, and lending to its members for their mutual benefits. While the company itself is regulated by the Ministry of Corporate Affairs, its deposit taking activities are regulated by the Reserve Bank of India.
A Nidhi company is registered as a Public Limited Company and hence the minimum requirements to set it up is almost similar to that of a Public Limited Company, especially regarding the number of shareholders, directors, and name of the company. The only difference here relates to the primary business activity of the Nidhi company, which is fixed to accepting deposits and lending money to its members only. Given below is an elaborate list that must be checked before Nidhi Company registration in India.
At least 7 shareholdersAt least 3 directorsA unique name that ends with the words “Nidhi Limited”A registered business addressMinimum paid up equity share capital of Rs.5 lakhsA Memorandum of Association containing the object of the Nidhi company as accepting deposits and lending money to its members for their mutual benefits.For NIDHI Company formation, you must first incorporate your business as a public limited company and then apply for obtaining the NIDHI Company license within the prescribed time period under the NIDHI Rules, 2014. The detailed stepwise procedure for Nidhi Company registration has been mentioned below.
You must produce certain prescribed legal documents in order to apply for the NIDHI Company Registration. A detailed list of every single one of these documents has been given below. You must make sure you have all of the required documents before even starting the process of NIDHI company registration, and if you don’t, you must make arrangements for the missing documents as soon as possible.
A NIDHI Limited Company’s name needs to be distinctive and one that conveys its brand and business objective aptly. Additionally, a set of conditions that must be met while naming a NIDHI company have been laid out in the Companies Act, the Company (Incorporation) Rules, the Trademark Act, and the Names and Emblems. The name of a NIDHI Company cannot be same as or similar to the name of an already-existing company, LLP, an applied or a registered trademark. Read our article
Once you’ve decided on a legit name for the NIDHI company, you must reserve it with the Registrar of Companies in order to stop other companies from using it without your permission or stealing it. All you have to do is avail of our name approval and reservation services, after which we shall check the eligibility of the names you have suggested and submit an application to reserve it, either in the RUN (Reserve Unique Name) or PART A of the SPICe+ application.
After approving the name of a Nidhi Limited Company, you can proceed with its incorporation. To apply for the incorporation of a NIDHI company, you are required to fill out the online SPICe+ application available on the official website of MCA. The application is divided into two parts- PART A for the name reservation and PART B for NIDHI company incorporation. The application is filled out and signed by any one director of the company, and submitted to the ROC along with the prescribed set of documents attached with it.
The ROC, after receiving the application for NIDHI Company incorporation, verifies all the details and documents furnished in it. Only after the ROC is satisfied with the authenticity of such details and documents, he shall register the NIDHI Limited Company, and issue a Certificate of Incorporation to the NIDHI company as a conclusive proof of its registration. Additionally, the ROC also allots a Corporate Identification Number as the unique identity of the NIDHI company.
Post-incorporation, a company must file an application for obtaining the NIDHI Company license after fulfilling a set of conditions regarding its number of members , net funds, term deposits, etc, as prescribed in the Companies Act, 2013. Check out the detailed list of such conditions here. The application must be filed in form NDH 4 to the Central Government within 4 months from the date of incorporation of the NIDHI Limited Company or within such extension period as permitted by the Regional Director. After being satisfied that the NIDHI company has fulfilled all the prescribed conditions, the Government shall grant it the NIDHI Company license to NIDHI company and notify the same in the official gazette.
A NIDHI company can obtain the NIDHI Company license only after getting incorporated as a NIDHI Limited Company in India. To register a NIDHI Limited Company, the applicant must file the all-inclusive SPICe+ application along with the prescribed documents attached with it in digital format. The list of all such documents required to incorporate a Public Limited company looking forward to obtain the NIDHI Company license has been mentioned in the table below.
Voter IDDriving LicensePassportAadhar CardElectricity BillTelephone BillGas BillWater billMBank Statement not older than 2 monthsElectricity BillTelephone BillWater billGas Bill not older than 2 monthsQuestionnaire For Company RegistrationConsent of Directors in Form DIR-2Specimen Signature of DirectorsSigned Subscriber Sheet
