A Nidhi Company can be referred to as a bank where the only beneficiaries of the loans and the deposits are the members of the company themselves. It is mutual benefits society that as a form of a company. It has almost all the features of private limited companies and to that end, the way you start a Nidhi company in India is the same as a private limited company.
What are the requirements for a company to be a Nidhi company?
For a company to be a Nidhi company, it should have the following requirements:
- This form of a company should have at least 3 directors.
- There should be at least 7 shareholder5s of this form of the company when it is being registered.
- There should be at least 5 lakhs of equity capital.
- It should have a net worth of at least 10 lakhs rupees.
- It should only have an object in its habit of thrift and savings amongst its members. The receiving and granting loan are the activities that are to among only the members.
What are the documents that are required for the Nidhi company formation?
The documents that are required prior to beginning the registration process are as follows:
- You would fist need a self-attested copy of the pan card.
- Four photographs.
- Self-attested copy of identity proof which can be anything in the following:
- Voter Id card
- Driving License
- Self-attested copy of the address proof of the directors. These can be anything in the following:
- Bank statement
- Utility bills like electricity bills, Water bills, etc.
- Address proof of the company’s location: you require any of the following for this purpose:
- Utility Bill like the electricity bill or any other bill in the name of the company
- Rent agreement
- A No objection certificate from the owner for doing business and registering the company.
Also Read: Secretarial Compliance and Annual Compliance for a Nidhi Company
The registration process for a Nidhi company
The registration process for a Nidhi company is as follows:
- First, an application is made for the DSC ad the DIN: Before becoming the director of a Nidhi company, it is necessary that you acquire a Directors Identification Number. Similar is the case with the digital signature. For it is important that you get your hands on a digital signature as well. This is done through apply for the digital signature certificate.
- Then, you need to choose a name for the company. For this purpose, you need to apply a RUN application which refers to as “reserve unique Number”. The motive of this application if to apply for the name of the company.
- Drafting the MoA and the AOA: Now, the Articles of Association and the Memorandum of Association are to be drafted. This is done by the professionals themselves.
- Once all these have been filed, the Application is filed for company incorporation either online or offline. This file is then passed to the Registrar of Companies “ROC”
If all the steps have been followed through within the right way, your company would be registered. To that end, you would be awarded a Certificate of Incorporation.