Nidhi company registration – Venture care | Register Nidhi Company Online

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EANING Nidhi Company means a company which has
been incorporated as a public company with the
object of-Culvang the habit of thri and savings
amongst its members and receiving deposits from,
and lending to, its members only, for their
mutual benefit.

• OBJECT TO INCORPORATE NIDHI COMPANY
• Nidhi Company is incorporated with following
  objecves
• To smulate savings among its member
• To lend Loans and receive money as deposits for
  the purpose from only its members.
• Since Nidhis come under NBFCs, the RBI is
  empowered to issue direcons to them in maers
  relang to their deposit acceptance acvies.
  However, since Nidhis deal with their
  shareholdermembers only, RBI has exempted such
  nofied firms from the provisions of the RBI Act
  and other direcons applicable to NBFCs.
• APPLICABILITY
• The Central Government made Nidhi Rules, 2014
  for the purpose of carrying out the objecves of
  Nidhi companies. These rules shall be
  applicable to
• Every company which had been declared as a Nidhi
  or Mutual Benefits under Secon 620A(1)of
  Companies Act, 1956
• Every company funconing on the lines of a Nidhi
  company or Mutual benefit society but
• has either not applied for or has applied for and
  is awaing noficaon to be a Nidhi or Mutual
  Benefit Society under Secon 620A(1)of Companies
  Act, 1956
• Every company incorporated as a Nidhi pursuant to
  the provisions of Secon 406of the Companies Act,
  2013.
• PRE-REGISTRATION REQUIREMENTS FOR REGISTERING A
  NIDHI COMPANY
• Minimum Three Directors

Minimum Seven Members Nidhi Company can be
started with seven members. Out of which 3 are
also to be appointed as directors.
Minimum Capital Requirement
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Nidhi Company as Public Limited Company Should
have Capital of Rs.5,00,000/- Like Public
Limited Company.
No Preference Shares shall be issued. Object of
the Company The objecve of such a firm would be
to imbibe in the members a habit of thri and
saving and the services would only be restricted
to its members. The name of the company must
have word as Nidhi Limited at the
end. PROCEDURE FOR INCORPORATION OF NIDHI
COMPANY Get Digital Signature Cerficate (DSC)
of all seven members. Get Director Idenficaon
number (DIN) of three Directors by using DSC.
Suggest at least Six Company name. We will do
search for name availability. Apply to ROC for
name approval with adding word Nidhi Limited.
Once name is approved by ROC File Incorporaon
document with ROC like MOA AOA Consent
of Director, Affidavit and declaraon from
directors etc. Once Incorporaon form is approved
by ROC, ROC shall issue Cerficate of Incorporaon
with PAN and TAN No.

• Requirement to Apply for DSC
• All 7 members should have DSC
• Pan Card Self Aested
• Residenal Proof Self Aested
• Dully fill and sign DSC applicaon form.
• Requirement to Apply for DIN
• (Minimum Three Directors are required for
  Incorporaon of Nidhi Company)
• Photograph of the Applicant To be Self-aested.
• PA N To be Self-aested Mobile No. Email id.
• Educaonal Qualificaon
• Occupaon

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• Proof of residence of applicant
• Address proofs like passport, elecon (voter
  identy) card, raon card, driving licence,
• electricity bill, telephone bill or bank account
  statement shall be aached and should be in the
  name of applicant ( shall not be later than 2
  months).
• DSC of Individual.
• Requirement to Apply for Name Availability
• Six Proposed name with significance of Name
• Authorized Capital- Minimum 5 Lacs
• Jurisdicon of Registrar of Companies.
• Main Object to be pursued by Company
• Requirement to Apply for Incorporaon of Nidhi
  Company
• Registered office address of Company.
• Recent Address proof with NOC from Owner.
• Consent from all Directors
• Affidavit and declaraon from all directors and
  subscribers.
• TIME PERIOD
• Time Required for Incorporaon of Nidhi Company
  Shall be 20-30 days, depending on government
  approval.

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Ratio Ratio of net owned funds to deposit shall
be not more than 120. This ratio is very easy to
understand. Suppose, if you have net owned funds
of 10 lakh, then your total deposit limit would
be INR 2 Crore. Deposit Unencumbered term
deposits of not less than 10 of the outstanding
deposits as specified in Rule 14. Members
restricon A Nidhi Company shall not admit a body
corporate or trust as a member. A minor shall not
be admied as a member of Nidhi Company. But
deposits may be accepted in the name of a minor,
if they are made by the natural or legal guardian
who is a member of Nidhi

• GENERAL RESTRICTIONS
• Rule 6 provides general restricons.
• Carry on the business of
• Chit Fund,
• Hire Purchase Finance,
• Leasing Finance,
• Insurance or Acquision of Securies issued by
  anybody corporate
• Issue
• Preference Shares,
• Debentures or
• Any Other Debt Instrument by any name or in any
  form whatsoever
• Open any Current Account with its members
  Acquire another company by
• Purchase of securies or
• Control the composion of the Board of Directors
  of any other company in any manner whatsoever or
• Enter into any arrangement for the change of its
  management, unless it has passed a special
  resoluon in its general meeng and also obtained
  the previous approval of the Regional Director
  having jurisdicon over Nidhi
• Carry on any business other than the business of
  borrowing or lending in its own name

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• Enter into any Partnership Arrangement in its
  borrowing or lending acvies
• Issue or cause to be issued any adversement in
  any form for solicing deposit
• Pay any brokerage or incenve for mobilizing
  deposits from members or for deployment of funds
  or the granng loans.
• Share capital allotment
• Every Nidhi shall allot
• To each deposit holder at least a minimum of 10
  equity shares or shares equivalent to Rs.100/-.
• To each savings account holder and a recurring
  deposit account holder at least 10 equity shares
  of Rs.10/-.
• Acceptance of deposits
• A Nidhi shall not accept deposits exceeding 20
  mes of its Net Owned Assets as per last audited
  financial statements.
• The fixed deposits shall be accepted for a
  minimum period of 6 months and a maximum period
  of 60 months.
• Recurring deposits shall be accepted for a
  minimum period of 12 months and a maximum period
  of 60 months.
• In case of recurring deposits relang to mortgage
  loans, the maximum period of recurring deposits
  shall correspond to the repayment period of such
  loans granted by Nidhi.
• The maximum balance in a savings deposit account
  at any given me qualifying for interest shall
  not exceed Rs.1,00,000/- and the interest shall
  not exceed 2 above the rate of interest payable
  to savings bank account by naonalized banks.
• Interest for fixed and recurring deposits shall
  be at a rate not exceeding the maximum rate of
  interest prescribed by RBI which the NBFC can pay
  on their public deposits.

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91 91 7271 3075