Nidhi Company Registration Services by StartBizzIndia

Embark on Your Expansion Journey: Effortlessly Establish Your Nidhi Company in India with StartBizzIndia!

Join hands with India’s premier Nidhi Company Registration service provider and swiftly register your Nidhi Company. Our seasoned experts will guide you through the entire process, ensuring a seamless experience.

Online Nidhi Company Registration in India

StartBizzIndia.com offers streamlined Nidhi Company registration services in India, catering to the specific needs of aspiring entrepreneurs. Nidhi Companies, a unique category of NBFCs, operate under the regulatory framework of Section 406 of the Companies Act, 2013, and the Companies (Nidhi Companies) Rules, 2014. These companies are established with the aim of promoting savings and fostering a culture of thriftiness among their members.

As specialized financial entities, Nidhi Companies are authorized to accept deposits exclusively from their shareholders and extend loans to them. The Reserve Bank of India (RBI) oversees all financial transactions to ensure compliance with regulatory standards, while the Ministry of Corporate Affairs governs their operations.

At StartBizzIndia.com, we understand the intricacies involved in Nidhi Company registration and offer comprehensive support to simplify the process for you. Our seasoned professionals are dedicated to assisting you at every stage, from documentation to registration, ensuring a hassle-free experience. Partner with StartBizzIndia.com today for a smooth and efficient Nidhi Company registration journey in India.

Benefits of Nidhi Company Registration

1. Affordable Capital Requirement: Nidhi Company registration adheres to the Nidhi Rules of 2014, requiring a minimum capital investment of just Rs. 10 lakhs, making it accessible for entrepreneurs.
2. Promotes Saving Culture: Nidhi Companies foster a culture of savings and thriftiness among members, encouraging financial discipline and responsible money management.
3. Member-Controlled Governance: Operating autonomously without external interference from trusts or committees, Nidhi Companies ensure that members have direct control over Nidhi funds, ensuring transparency and trust.
4. Competitive Borrowing Rates: Members can avail loans at attractive interest rates, often lower than traditional banks, with simplified processes and fewer obligations.
5. Continuity in Operations: Nidhi Companies guarantee uninterrupted services, even during member transitions due to retirement, insanity, insolvency, or demise, providing stability and reliability to members.

Requirements for Nidhi Company Registration in India

To successfully register a Nidhi Company in India, it is essential to meet the following key requirements:

1. Membership Threshold: The Nidhi Company must enlist a minimum of 200 members or shareholders within its first year of operation.
2. Net Owned Funds (NOF): The company’s Net Owned Funds (NOF) should exceed Rs. 10 lakhs, ensuring financial stability and robustness.
3. NOF-to-Deposit Ratio: The NOF-to-deposit ratio must be maintained at a minimum of 1:20, reflecting a healthy financial position.
4. Unencumbered Term Deposits: The company should hold unencumbered term deposits amounting to at least 10% of the total outstanding deposits, safeguarding member interests.
5. Interest Rates: Nidhi Companies are permitted to offer interest rates up to 12.5% on Fixed Deposits (FDs) and Recurring Deposits (RDs), and up to 6% on savings accounts.
6. Deposit Limits: Nidhi Companies can accept deposits up to 20 times the invested amount, providing flexibility in fund accumulation.
7. Regulatory Compliance: Annual compliance is mandatory, including the filing of Annual Returns, Income Tax Returns, and Financial Statements to maintain regulatory adherence and transparency.

Documents Required for Nidhi Company Registration in India

Here’s a comprehensive list of essential documents needed for the registration of a Nidhi Company in India:

Basic Checklist:

1. Three Directors: A minimum of three directors is required for a Nidhi corporation, with at least one being an Indian Citizen and Resident.
2. Seven Promoters: The company must have at least seven promoters, who may also serve as directors if applicable.
3. Unique Name: The proposed name for the company must be unique and not similar to any existing companies or trademarks in India. It must include the words “Nidhi Limited” at the time of incorporation.
4. Paid-Up Capital: A minimum paid-up equity share capital of Rs. 5 lakhs is mandatory for registration.
5. Registered Office: The company must have a physical address for its registered office, along with necessary licenses for the location.

Documents for Registered Office:

• Copy of the latest bank statement (within the last three months) or utility bills like telephone, mobile, energy, or gas bills (within the last two months).
• Copies of property tax receipts.
• Notarized rental/lease agreement.
• Scanned copy of sale deed/property deed.
• No objection certificate from the property owner.

Documents for Indian Directors or Promoters:

• PAN Card of all shareholders and directors.
• Recent passport-sized photograph of the shareholder/director (in jpeg/pdf format).
• ID proof such as Voter ID Card, Passport, or Driving Licence.
• Proof of address such as Bank Statement, recent Electricity/Telephone/Mobile Bill.

Note: Digital signatures are mandatory for all prospective directors and promoters. RegisterKaro support manager will assist in the incorporation application process and provide a link for video eKYC verification, where the applicant records a brief video and enters an OTP for authentication.

Documents for NRI Directors or Promoters:

ID Proof:

• Passport/PAN Card, verified by the Indian embassy.

Address Proof:

• If the permanent address is in India:
  • Bank Statement/Latest Electricity/Telephone/Mobile Bill: certified by a competent CA/CS or CMA (Practising).
• If the current address is abroad and the country is a member of the Hague Convention (HC):
  • Notarized by a Public Notary and apostilled by the appropriate government of the respective country.
• If the country is outside the Hague Convention (HC):
  • Notarized by a Notary (Public) of that country, with the Notary’s certificate certified by a Diplomatic or Consular Officer.

Documents for Foreign Nationals:

ID Proof (Passport/PAN Card) & Address Proof:

• Residing in their own country under the Hague Convention (HC):
  • Notarized by a Public Notary and apostilled by the competent authority of that country.
• Residing outside their own country and the country of residence is under the Hague Convention:
  • Option A: Notarized by a Public Notary and apostilled by the competent authority of the foreign country.
  • Option B: Attested by the Embassy of their Country of Origin in the place of residence.
• Residing in their own country under a Commonwealth Country (CW):
  • Notarized by a Public Notary.
• Residing outside their own country and the country of residence is a Commonwealth Country:
  • Option A: Notarized by the Public Notary of the foreign country.
  • Option B: Attested by the Embassy of their Country of Origin in the place of residence.
• From a country outside the Commonwealth and not a party to the Hague Apostille Convention:
  • Notarized by a Notary (Public) of that country, and the Notary’s certificate is authenticated by a Diplomatic or Consular Officer.

Additionally, all proposed Directors must submit a list of Indian Companies in which they hold 2% or more shares.

Procedure for Nidhi Company Registration in India

Here’s a simplified step-by-step guide for registering a Nidhi Company in India:

Step 1: Obtain Digital Signature Certificate (DSC) and Director Identification Number (DIN):

• Apply for DSC and DIN, essential for online filings. Our experts will assist you in acquiring these.

Step 2: Choose a Company Name and Apply for Name Reservation:

• Select a unique name for your Nidhi Company and apply for its reservation.

Step 3: Draft Memorandum of Association and Articles of Association (MOA & AOA):

• Prepare MOA & AOA outlining the company’s objectives, rules, and regulations.

Step 4: File Forms and Pay Fees:

• Upload required forms and pay the necessary fees and Stamp Duty to the Ministry of Corporate Affairs (MCA).

Step 5: Document Scrutiny by MCA:

• MCA scrutinizes the submitted documents for compliance.

Step 6: Receipt of Certificate of Incorporation (COI):

• Upon successful scrutiny, receive the Certificate of Incorporation (COI) from MCA, officially establishing your Nidhi Company.

Annual Compliance of a Nidhi Company

Ensure timely compliance with the following annual requirements for your Nidhi Company in India:

1. Form NDH-1:
   • Submit details of members, loans, deposits, etc., for the financial year using e-Form GNL-2 for Registrar submission.
2. Form NDH-2:
   • File if the company fails to achieve at least 200 members within one year of incorporation or fails to maintain the NOF to deposit ratio of 1:20.
3. Form NDH-3 (Half-Yearly Return):
   • File with the Registrar of Companies.
4. Form NDH-4:
   • Apply for declaration as Nidhi Company and provide status updates.
5. Form AOC-4:
   • File financial documents and supporting papers to the RoC.
6. ITR-6:
   • Submit Income Tax Return.
7. Form MGT-7:
   • File Annual Return.

Stay compliant with these annual requirements to ensure smooth operations and legal adherence for your Nidhi Company.

Event-Based Compliances of a Nidhi Company in India

During the incorporation process and thereafter, certain event-based compliances are essential for Nidhi Companies. Here’s a list of these requirements:

1. Transfer of Shares
2. Appointment, Resignation, or Removal of Director
3. Change in Company Name
4. Increase in Authorized Capital
5. Alteration in Company’s Objectives
6. Change in Registered Office Address
7. Appointment of Key Managerial Personnel (KMP)

Penalties for Non-Compliance

Adherence to all compliances is crucial for every Nidhi Company. Failure to comply may result in penalties:

1. Initial Non-Compliance:
   • The company and concerned officers may be fined up to Rs. 5000.
2. Repeat Offenses:
   • For each subsequent day of non-compliance, the company may face a penalty of Rs. 500/day.

Ensure timely compliance with event-based requirements to avoid penalties and maintain regulatory adherence for your Nidhi Company.

At StartBizzIndia, we offer comprehensive assistance with IndianNidhi Company, including:

• Initial consultation and assessment of registration requirements
• Name reservation and incorporation document preparation
• Guidance on compliance obligations and licensing
• Regular updates on the registration process
• Ongoing compliance support and assistance

FAQs

1. What is a Nidhi Company?
   • A Nidhi Company is a type of non-banking financial institution (NBFC) recognized under the Companies Act in India. It promotes thrift and savings among members while providing financial services like loans.
2. Who can register a Nidhi Company?
   • Any Indian citizen or legal entity, including companies or partnership firms, can register a Nidhi Company, provided they meet eligibility criteria.
3. What are the minimum requirements for Nidhi Company registration?
   • Minimum requirements include having at least seven members, three directors, a paid-up equity share capital of Rs. 5 lakhs, and a registered office address.
4. How long does Nidhi Company registration take?
   • The registration process typically takes 30-45 days, depending on document submission and processing time by the Registrar of Companies (ROC).
5. Can a Nidhi Company accept deposits from the public?
   • No, Nidhi Companies can only accept deposits from their members, not the general public.
6. Is having the word “Nidhi” in the company name mandatory?
   • Yes, it is mandatory for a Nidhi Company to include the word “Nidhi” in its name as per regulations.
7. Are Nidhi Companies regulated?
   • Yes, they are regulated by the Ministry of Corporate Affairs (MCA) and the Reserve Bank of India (RBI).
8. Can Nidhi Companies provide loans to non-members?
   • No, they can only provide loans or advances to their members.
9. Can Nidhi Companies operate in multiple states?
   • Yes, they can operate in multiple states but need at least one branch within the district of their registered office.
10. Can Nidhi Companies engage in other business activities?
    • No, they are restricted to borrowing and lending activities within their member base.

Start your Nidhi Company journey with StartBizzIndia for a smooth and efficient registration process tailored to your needs.