Nidhi Company has been derived from the Hindi word treasure. It is a form of the company meant for a habit of saving fund between the member of the company. Nidhi companies are the form of NBFC (Non-banking financial corporation) registered under Companies Act, 2013. It one of the cheapest and easiest form of NBFC. Nidhi company is a secured means of investment.
Nidhi Company consists of investment structure and realignment of funds within a growing group of the member who benefits from the returns at fixed duration. Nidhi company deals with borrow and lending of money. This activity can only be performed between members. Its members and membership is limited to individuals. It is basically highly localized and mostly single office institution.
Requirement before Nidhi Company Registration
- There must be minimum of 3 directors and 7 members including subscribers for incorporation. There is no educational qualification required for any of any member.
- Document Requirements to form a Nidhi Company
- DSC-Digital Signature Certificate of all the Directors.
- DIN-Director identification Number of all the Directors.
- Copy of a PAN card
- Copy of Id Proof(Aadhar Card, DL, Passport, Voter id)
- 2 Passport size photograph.
- Proof registered office address (Electricity Bill, Phone Bills, etc.)
- Proof registered rented office address (Bills and Rent Agreement with rent receipt).
- There should be minimum of Net owned funds of Rs 10 lacs or above. In some cases, there is No Minimum Capital Requirement. Earlier, it was used to be INR 5 lakh, but now you can register Nidhi Company with any amount of capital of your choice.
- Initially, DSC and DIN are obtained for filing the registration documents and form is filled.
- Verification and Approval of the Name-Reservation of the company name are done in this process.
- Prepare appropriate Memorandum of Association and Article of Association.
- Make the Application of Incorporation.
Requirement after Nidhi Company Registration
- There should not exceed of 20times from its net owned funds.
- There should be at least 200 members or shareholders within a particular time period from its commencement.
- Company should allow any new preference to share anytime.
- Another company can be acquired by purchase of securities or controls composed of the board of directors of other companies.
- RBI approval is not necessary for the Nidhi company registration.