{"id":11218,"date":"2020-06-22T13:59:38","date_gmt":"2020-06-22T08:29:38","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=11218"},"modified":"2022-11-16T13:59:04","modified_gmt":"2022-11-16T08:29:04","slug":"know-about-nidhi-company-registration-procedure-in-india","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/know-about-nidhi-company-registration-procedure-in-india\/","title":{"rendered":"All you need to Know about Nidhi Company Registration Procedure in India"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Before moving to the <strong><em>Nidhi\nCompany registration procedure in India<\/em><\/strong>, let&#8217;s have a glimpse on the\nbasics of Nidhi Company.<\/p>\n\n\n\n<p>A Nidhi Company is a type of  the non-banking finance company. The governance of laws and procedures of Nidhi Company is as per the <strong><em>Nidhi Companies Rules, 2014<\/em><\/strong>, along with <strong><em>Section 406 of the <\/em><\/strong><em><strong>Companies Act of 2013<\/strong><sup><a class=\"text-primary\" href=\"https:\/\/www.mca.gov.in\/content\/mca\/global\/en\/acts-rules\/companies-act\/companies-act-2013.html\"><strong>[1]<\/strong><\/a><\/sup><\/em>. Nidhi Companies are permitted to accept deposits from members and confer money to its members only. <\/p>\n\n\n\n<p>The contribution of funds with\nregard to a Nidhi Company gets raised only from shareholders or members of the\nNidhi Company, and its usage is only restricted among the Nidhi Company\nshareholders. All the matters concerning their activities of lending and\naccepting needs to follow the directions issued by the authorized body, Reserve\nBank of India. On the other side, Reserve Bank of India provides exemptions to\nnotified Nidhi Companies from the core provisions in accordance with the RBI\nAct and several directions applicable to Non-banking Financial Companies\nconsidering the point that the conduct of the business of Nidhi Companies is\nlimited to their members\/shareholders only.<\/p>\n\n\n\n<p>Also known as <strong><em>Nidhi Bank<\/em><\/strong>, Nidhi Companies aims to foster the habit of savings among the members associated with the Nidhi Companies. By following the <a href=\"https:\/\/corpbiz.io\/nidhi-company-registration\"><strong>Nidhi Company registration<\/strong><\/a> procedure in India, you can fulfill your desire for commencing a <strong><em>loan or finance business in India.<\/em><\/strong><\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/know-about-nidhi-company-registration-procedure-in-india\/#Prerequisites_for_Nidhi_Company_Registration_Procedure_in_India\" >Prerequisites for Nidhi Company Registration\nProcedure in India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/know-about-nidhi-company-registration-procedure-in-india\/#Post-Registration_Essentials_for_Nidhi_Company_Incorporation_in_India\" >Post-Registration Essentials for Nidhi Company Incorporation in India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/know-about-nidhi-company-registration-procedure-in-india\/#Documents_Required_for_Nidhi_Company_Registration_Procedure_in_India\" >Documents Required for Nidhi Company Registration Procedure in India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/know-about-nidhi-company-registration-procedure-in-india\/#Nidhi_Company_Registration_Procedure_in_India\" >Nidhi Company Registration Procedure in India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/know-about-nidhi-company-registration-procedure-in-india\/#The_Final_Words\" >The Final Words<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Prerequisites_for_Nidhi_Company_Registration_Procedure_in_India\"><\/span>Prerequisites for Nidhi Company Registration\nProcedure in India<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>The prerequisites for Nidhi\nCompany Registration Procedure in India are as follows-<\/em><\/strong><\/p>\n\n\n\n<ul><li>There\nmust be at least <strong><em>seven members<\/em><\/strong>, along with <strong><em>three directors<\/em><\/strong>.<\/li><li>Not\nauthorized and permitted to issue preference shares<\/li><li>The\n<strong><em>minimum\ncapital requirement<\/em><\/strong> for springing up the Nidhi Company is <strong><em>Rs 5\nlakh. <\/em><\/strong><\/li><li>DIN\nfor directors <\/li><li>The\nmission behind the initiation of Nidhi Company should be the development of\nsaving habits among the consumers by receiving deposits from the members and\nextending support by providing money to members only for mutual benefits of\nthem.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Post-Registration_Essentials_for_Nidhi_Company_Incorporation_in_India\"><\/span>Post-Registration Essentials for Nidhi Company Incorporation in India<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>The\npost-registration conditions for Nidhi Company are-<\/em><\/strong><\/p>\n\n\n\n<ul><li>Net Owned Funds needs to be beyond the figure of <strong><em>Rs 10 lakhs.<\/em><\/strong> Net Owned Funds comprise two factors- Free Reserves and Paid-up Share Capital.&nbsp; <\/li><li>By the first year-end, <strong><em>minimum members or shareholders of Nidhi Company<\/em><\/strong> should be <strong><em>200.<\/em><\/strong> In order to adhere to the legal requirements, a Nidhi Company should bring at least 200 members on board. If the total number of members falls below 200 anytime after this point, it will leave the company or an entity at default. There is a provision for applying for the time in the time limit of 30 days of financial year closure with Regional Director actively working with the Ministry of Corporate Affairs in <strong><em>Form NDH-02<\/em><\/strong> in case you are unable to reach 200 members limit. <\/li><li>Also, there is a condition that a Nidhi Company must not admit a minor, trust, or a body corporate as a member. <\/li><li>The ratio of Net Owned Funds or <strong><em>NOF to Deposits<\/em><\/strong> must be <strong><em>1:20<\/em><\/strong> or even more.<\/li><li>Unencumbered term deposits need to more than 10% of outstanding deposits. <\/li><\/ul>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/amendment-rules-2020-of-nidhi-company-registration\/\">Nidhi Company Registration: Amendment Rules 2020<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Documents_Required_for_Nidhi_Company_Registration_Procedure_in_India\"><\/span>Documents Required for Nidhi Company Registration Procedure in India<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>There\nis a requirement of following documents for Nidhi Company Registration in India<\/em>&#8211;\n<\/strong><\/p>\n\n\n\n<ul><li>Aadhaar Card copy<\/li><li>Copy of PAN Card<\/li><li>Passport-sized photos of every associated director<\/li><li>Telephone Bill\/Electricity Bill\/Bank Statement Bill<\/li><li>Address proof of members along with directors (Voter ID, Ration Card, along with Utility Bill (Water Bill and Mobile Bill)<\/li><li>A requirement is also for the address proof of the company. You must ensure that proof of address is not older than two months.<\/li><li>Rent Agreement Copy of premises of the office executed on the company name (if the property is a rented one)<\/li><li>No-objection Certificate (NOC) from the owner\/landlord that he is free from all types of grouses for utilizing his premises as the company registered office <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Nidhi_Company_Registration_Procedure_in_India\"><\/span>Nidhi Company Registration Procedure in India <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" width=\"540\" height=\"340\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/06\/image-138.png\" alt=\"Nidhi Company Registration Procedure\" class=\"wp-image-11219\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/06\/image-138.png 540w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/06\/image-138-300x189.png 300w\" sizes=\"(max-width: 540px) 100vw, 540px\" \/><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\">DSC and DIN<\/h3>\n\n\n\n<p>In the first\nstep, directors of the Nidhi Company needs to apply for DSC (Expanded as\nDigital Signature Certificate) and DIN (Expanded as Director&#8217;s Identification\nNumber). DSC is a digital signature that is useful for processes concerning\nE-Filing. The Ministry of Corporate Affairs (MCA) is after the issuance of the <strong><em>Director&#8217;s\nIdentification Number<\/em><\/strong>. Those Directors who are having DSC and DIN can\ngo-ahead for skipping this step.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Approval of Name<\/h3>\n\n\n\n<p>In the second\nstep, you have to go for choosing as well as suggesting three distinct names to\nthe MCA (Ministry of Corporate Affairs) for your Nidhi Company registration.\nMCA is going to give its nod to only one name out of the three available\noptions. Also, there is a condition that the proposed names should not match\nthe previously registered companies&#8217; names, and they need to be unique on their\nown. The <strong><em>validity period for the approved name<\/em><\/strong> is just <strong><em>20\ndays<\/em><\/strong>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Filing of E-Form SPICe-32<\/h3>\n\n\n\n<p><strong><em>After\nthe name gets approved, filing e-form SPICe 32 along with the attachments\nmentioned below to pace up the Nidhi Company registration procedure in India.<\/em><\/strong><\/p>\n\n\n\n<ul><li>Articles of Association<\/li><li>Subscribers PAN Card<\/li><li>Memorandum of Association<\/li><li>First Directors Address Proof<\/li><li>Identity Proof of First Directors<\/li><li>No-Objection Certificate of Registered Office Owner<\/li><li>Latest Utility Bill of Registered Office (Gas\/Electricity\/Telephone)<\/li><li>Registered Office Address Proof (Sales Deed or Rent Agreement)<\/li><li>Form DIR-2 in which First Director give their Consent and Declaration<\/li><li>In Form INC-9, Subscribers along with First Directors goes for Self Declaration<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Certificate of Incorporation (CIN)<\/h3>\n\n\n\n<p>Once filing of\ndocuments gets over and stamp duty along with registration fees paid, acquiring\nthe Incorporation Certificate of Nidhi Company will require around <strong><em>15 to\n20 days.<\/em><\/strong> The Incorporation Certificate certifies that a company has\nbeen formed, and also it states the CIN (Company Identification Number).<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">TAN, PAN, and Bank Account<\/h3>\n\n\n\n<p>At last, you should apply for TAN as well as PAN. In the <strong><em>time limit of 7 working days<\/em><\/strong>, the <strong><em>PAN and TAN<\/em><\/strong> would get received as usual. After that, you should proceed ahead for submission of the AOA, MOA, Certificate of Incorporation, and PAN to the Bank in order to get a Bank Account opened. <\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" width=\"507\" height=\"271\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/06\/image-139.png\" alt=\"Apply DSC and DIN\" class=\"wp-image-11220\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/06\/image-139.png 507w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/06\/image-139-300x160.png 300w\" sizes=\"(max-width: 507px) 100vw, 507px\" \/><\/figure><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_Final_Words\"><\/span>The Final Words <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Through this insightful write-up on <strong><em>Nidhi Company registration procedure in India<\/em><\/strong>, we have attempted to make you aware of the essentials of the Nidhi Company Registration as well as steps to follow for Nidhi Company incorporation in India. Since Nidhi Companies promote savings, it has become the sector in demand. Even though Nidhi Company registration procedure in India is not as easy as ABC to follow, support from our professionals at <strong><em>Corpbiz<\/em><\/strong>, would simplify the things for you. <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/benefits-of-nidhi-company-registration-in-india\/\">\nGuide on Benefits of Nidhi Company Registration in India\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Before moving to the Nidhi Company registration procedure in India, let&#8217;s have a glimpse on the basics of Nidhi Company. A Nidhi Company is a type of the non-banking finance company. The governance of laws and procedures of Nidhi Company is as per the Nidhi Companies Rules, 2014, along with Section 406 of the Companies [&hellip;]<\/p>\n","protected":false},"author":19,"featured_media":11223,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[31],"tags":[686],"acf":{"service_id":"9"},"authorName":"Margesh Rai","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2024\/03\/Margesh.png","authorDescription":"With 10+ years of creative writing experience and 500+ blogs and thought leadership articles to his credit, Margesh Rai has left a significant impact in the field of content marketing. A published author and poet, Margesh Rai has experience writing for 20+ segments, such as Legal, Fintech, SAAS, Dairy, Real Estate, Hospitality, Recruitment, Sustainability, etc.","postViews":5361,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/11218"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/19"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=11218"}],"version-history":[{"count":13,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/11218\/revisions"}],"predecessor-version":[{"id":50733,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/11218\/revisions\/50733"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/11223"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=11218"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=11218"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=11218"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}