Nidhi Company

Know the Checklist of Documents Required for Nidhi Company Registration

calendar28 Nov, 2020
timeReading Time: 4 Minutes
Documents required for Nidhi Company Registration

Nidhi is the shortened form of the term National Initiative for Developing and Harnessing Innovations. Nidhi Company is often recognized as a type of NBFC or a financial institution that engaged with the activity of lending and depositing money to its members. In this blog we will explore each and every detail regarding Documents required for Nidhi Company Registration.

What is Nidhi Company?

This category of the companies come under the Companies Act, 2013 and is controlled as per the Reserve Bank’s guidelines. All the transactions in Nidhi Company occur in between the members only. These companies rejoice in several exemptions from the core provisions of the Reserve Bank. This is one of the differentiating factors that separate the Nidhi companies from other Non-Banking Financial Companies. Ministry of Corporate Affairs (MCA) has laid down the foundation of Nidhi Companies. MCA does not regulate every aspect of these companies. Instead, they only intervene in the matter of relating to their deposit acceptance activities.

Nidhi means a business entity that has been incorporated with an aim to develop the habit of saving and procure funds amongst the members for their mutual benefits. These companies are also recognized as Benefits funds, Mutual benefit, permanent fund, and Mutual benefits fund companies.

What are the Benefits Incorporating Nidhi Company in India?

Benefits Incorporating Nidhi Company in India

Documents Required for Nidhi Company Registration

Given below is a list of documents one requires for Nidhi company registration:

No Objection Certificate (NOC) (signed by the landlord/owner)

 No Objection Certificate (NOC) is commonly regarded as a legal document, issued by an institute, an organization, or a person to say that they have no objection whatsoever against the details mentioned in the documents. NOC finds its applicability in trade, employment, immigration, litigation, and many other areas to nullify any objection raised by the concerned party in the process. 

Digital Signature (DSC)

Digital Signature is popularly known as a digital key to authenticate the identity of the holder, granted by the certifying agency. Digital Signature typically carries basic information of the individual such as name, email id, country, and APNIC account name. 

Director Identification Number (DIN) of Directors

Director Identification Number, aka DIN, is an eight-digit identification number allotted to the proposed or active director of the company. DIN is granted by the Ministry of Corporate Affairs MCA after filing a required application. One has to visit the MCA official portal and explore the services section in order to download the DIR-3 form. Thereafter applicant needs to fill this form and attach the requested documents. The attached documents are required to be verified by the company’s official via DSC. 

Memorandum of Association of the Company (MoA)

The Memorandum of Association (MOA) of the organization talks about the constitution and the scope of the powers of the entity. Simply put, the Memorandum of Association is a foundation on which the organization is built. It is regarded as a public document in view of Section 399 of the Companies Act, 2013[1] . It contains all the information in relation to the rights and power of the company. In the light of Section 4 of the Companies Act, 2013, companies should prepare the MOA as per table A-E in schedule I of the Act. This is one of the most crucial Documents required for Nidhi Company Registration.

Articles of Association of the company (AoA)

Every organization requires a string of norms to handle its internal matters. The Articles of Association of the company (AoA) reflects the internal regulations of the company. AOA generally encloses the legal obligations of the company. Before you submit this extremely important document, make sure it contains all the necessary information about the company. It can be amended by passing a special resolution. 

PAN card

This is essential for the filing of the past transaction of the company. PAN Card is also imperative for the taxation process of the organization. 

Residential Proof

1. Mobile Bill

2. Electricity Bill

3. Telephone Bill

4. Bank Statement

Address Proof

1. Bank Statement

2. Residence Card

3. Driving License

4. Any other identity proof indicating the address. 

Passport

Passports are mandatory for entities whose director is not from the Indian Territory. Apparently, a passport is not compulsory for directors who are Indian nationals. 

Registered Office Proof

The applicant can submit a sale deed or the rent copy of the premises as proof for the registered office. 

Passport-sized photographs

Applicant needs to submit a few passport-sized photographs with an application for Nidhi company registration.

The list for Documents required for Nidhi Company Registration ends here. It’s essential to keep in mind that the Nidhi company registration application can be filled on the online channel. After submitting the requested fees, the portal will accept the form and sent it for verification for approval. 

Forms to be filled

INC 9 – this form must be filed by all the subscribers. 

DIR 2 – this form must be filed by the company’s directors. 

Conclusion

That’s the complete checklist for the documents required for Nidhi Company registration. If you have some uncertainty regarding the documentation part then head over to the message section and drop the query for the same.

Read our article: Here’s Why NIDHI Company Cannot Operate Like NBFC

Pankaj Tyagi

Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.

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