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An Overview of Nidhi Company Registration in Ahmedabad

A Nidhi company is categorised as an NBFC and registered under Section 406 of the Companies Act, 2013. It is a particular form of entity that was incorporated in accordance with Section 20A of the Companies Act of 1956. A Nidhi Company in Ahmedabad is required to abide by a set of rules. This type of company is created largely to create a saving habit among its members. As a result, savings contributions from the members serve as a significant funding source for the Nidhi Company. Along with the ability to save money, it offers its members a few more advantages they can share. These organisations use the deposits they collect for their shareholders or members. To expand its business, the company gives loans or advances and uses the money to buy stocks, bonds, debentures, and other securities issued by the Government. The Ministry of Corporate Affairs oversees the regulation of Nidhi Companies (MCA). Yet, the RBI keeps an eye on all its financial transactions (Reserve Bank of India).

A Nidhi Company must be incorporated as a public limited company and adhere to the guidelines established by the Ministry of Corporate Affairs in order to be registered in India. During one year of incorporation, the Nidhi firm must have a minimum of 200 members, and its main goal must be to encourage its members to practise frugal living.

Advantages of a Nidhi Company Registration in Ahmedabad

Here are the benefits of Nidhi Company Registration in Ahmedabad-

  • Promotes the savings habit:A Nidhi firm is primarily established to encourage the members to practise thrift and saving. It offers a platform for people to combine their resources and consistently save money. The organisation encourages members to save more money by offering enticing interest rates on deposits. This encourages people to save and invest their money sensibly, which can eventually result in financial security.
  • Access to affordable credit:In comparison to conventional banks and other financial institutions, Nidhi Companies offer loans to their members at reduced interest rates. Those who might not otherwise have access to finance can now do so with ease. Also, the loans are frequently given without any form of security, making it simpler for members to get credit.
  • Limited Liability: Members of a Nidhi company are only held liable for the amount of their shareholding, according to the Nidhi firm's limited liability policy. Members are not held personally accountable for the debts or losses of the firm as a result. Members are shielded from any financial dangers related to business operations thanks to this.
  • Low regulatory compliance standards: Nidhi businesses are subject to lower regulatory compliance standards than other NBFC categories. This lessens the administrative burden and makes it simpler for people to launch and manage a Nidhi business. Some sections of the Companies Act of 2013 and the rules made thereunder must be followed by the company.
  • Simple to incorporate: Setting up a Nidhi firm is extremely simple and doesn't cost much money. This makes it a desirable choice for anyone seeking to launch a little financial services company. Within a year of its incorporation, the business must have a minimum of 200 members in order to be incorporated as a public limited company.
  • Self-Sustaining Business Model: Nidhi businesses use a self-sustaining business model, which means they don't require outside investment to function. The company receives deposits from its members as its main source of funding and lends money to them at fair interest rates. This increases the company's financial stability and reduces its reliance on market factors.

Checklist for Nidhi Company Registration in Ahmedabad

The comprehensive Checklist for Nidhi Company Registration in Ahmedabad is provided below:

The following member/director Documents:

  • A PAN Card copy.
  • Passport size of the photo.
  • Copy of voter identification card or Aadhaar card.

Proof of registered address

  • Copy of a lease for office space signed in the company's name (If rented property).
  • Copy of the registered office's water/electricity bill.
  • NOC from the landlord or property owner stating that he has no issues with the location of the company's registered office being on his property.
  • Declarations and affidavits from the proposed Nidhi Company's first directors in the format required.
  • Form DIR-2 for all the proposed Directors.
  • Articles of Association and the Memorandum of Agreement.

Note: No Nidhi firm shall have any other aim specified in its Memorandum of Association other than the object of inculcating the habit of thrift and saving among its members, receiving deposits from them, lending only to its members, and working for their mutual advantage.

Requirements for Nidhi Company Registration in Ahmedabad

Following are the requirements for Nidhi Company Registration in Ahmedabad:

Minimum number of members

To begin the registration procedure, the firm must have a minimum of 7 members.


The minimum number of directors for the firm is three, and at least one of them needs to be an Indian citizen. A DSC and a DIN, or Director Identification Number, are requirements for all directors (Digital Signature Certificate).

Name reservation

The proposed name for the Nidhi Company must be distinctive and distinct from the names of any other businesses. You must do this by making a reservation with the Ministry of Corporate Affairs (MCA).

Registered office

The business needs to have a location in India. You must present evidence of the registered office's address, such as a lease or an electricity bill.

Minimum capital requirement

The firm must have at least Rs. 5 lakhs in paid-up capital.


The articles of association (AOA) and memorandum of association (MOA) must be submitted to the MCA, and the firm must be incorporated as a public limited company.


Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) must be received by the business from the Income Tax Administration.

Procedure for Nidhi Company Registration in Ahmedabad

In accordance with Section 406 of the Companies Act of 2013, a "Nidhi" is a business that was formed with the intention of instilling financial responsibility in all of its participants. Additionally, it offers its members lending options for their mutual advantage. It abides by each and every regulation established by the Central Government for the control of this class of companies.

Following is the step by step procedure for Nidhi Company Registration in Ahmedabad:

Step 1: Acquire Director Identification Numbers (DIN) and Digital Signature Certificates (DSC)

The Ministry of Corporate Affairs must issue Digital Signature Certificates (DSC) and Director Identification Numbers (DIN) to the potential directors of the Nidhi firm (MCA). All Indian company directors are required to meet this qualification.

Step 2: Get MCA approval for the name.

The Ministry of Corporate Affairs (MCA) must then approve the proposed Nidhi Company's name before moving forward. The suggested name must be original and distinct from any other company's name.

Step 3: Draft the MOA and AOA

The Companies Act of 2013's standards must be followed while creating the Nidhi Company's Memorandum of Association (MOA) and Articles of Association (AOA). Although the AOA outlines the guidelines for the management and functioning of the organisation, the MOA outlines the goals and purview of the company.

Step 4: Submit an Incorporation Application to the ROC

The application for incorporation of the Nidhi Company must then be submitted to the Registrar of Companies (ROC) with all required supporting paper works, including the MOA, AOA, and PAN cards for the proposed directors as address and identification evidence and proof of identity.

Step 5: Pay Stamp Duty and Registration Fees

The Nidhi Company must be incorporated by paying the necessary registration fees and stamp duty. Depending on the company's authorised capital, the fees could change.

Step 6: Get an incorporation certificate

The ROC will issue a Certificate of Incorporation (COI) for the Nidhi firm after validating the supporting paper works and approving the application. The COI demonstrates the company's legitimacy.

Step 7: Get PAN and TAN

The Income Tax Agency must issue the Nidhi firm with a Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN).

Step 8: Create a Bank Account and Make a Deposit

The minimum paid-up capital requirement of Rs. 5 lakhs must be deposited into the Nidhi company's new bank account.

Step 9: Start the process

The Nidhi firm can begin operations and accept deposits from its members as soon as the bank account is opened and the paid-up capital is deposited.

Laws Applicable to Nidhi Companies in India

The Nidhi Regulations of 2014 and the 2013 Companies Act govern Nidhi companies in India. In addition to this, the Reserve Bank of India (RBI) occasionally releases rules and instructions to control how Nidhi firms operate. The following are some of the principal laws and rules that apply to Nidhi businesses in India:

Companies Act of 2013

The Companies Act of 2013 comprises provisions pertaining to the establishment, administration, and control of Indian corporations, including Nidhi corporations. The Act details, among other things, the conditions for the incorporation of a Nidhi company, the qualifications for directors, the guidelines for shareholder meetings, and the obligations of the board of directors.

Nidhi Rules, 2014

To govern how Nidhi enterprises operate, the Ministry of Corporate Affairs created the Nidhi Rules, 2014. These regulations outline, among other things, the minimal requirements for a Nidhi company Registration, the Nidhi company's permitted activities, the eligibility requirements for members, the regulations governing borrowing and lending, and the reporting and compliance requirements.

Regulations of the Reserve Bank of India (RBI)

The RBI established policies and directives to control how Nidhi firms operate in India. These regulations cover a number of topics, including accepting deposits from Nidhi firms, keeping reserve funds, investing money, operating branches, and submitting various reports to the RBI.

The Income Tax Act of 1961

The Income Tax Act of 1961 controls how Nidhi firms are taxed in India. The Act outlines the tax rates that apply to Nidhi corporations, the relevant exemptions and deductions, the requirement to file tax returns, and the manner in which taxes must be paid.

Indian Stamp Act, 1899

The Indian Stamp Act, 1899, governs the payment of stamp duty on numerous papers, including the MOA, AOA, and share certificates, for Nidhi corporations in India.

Frequently Asked Questions

After a Nidhi Company has file the application for (NDH-4) to obtain Nidhi Company License, the Government must either reject or approve it within 45 days from the date of filing the application.

No, a Nidhi Company in Ahmedabad cannot issue preference shares as per Nidhi Rules, 2014.

No, a Nidhi Company cannot acquire another company by purchase of securities, unless a special resolution to the effect has been pass in GM of its shareholders of the Nidhi Company & a prior approval regarding the same has been allowed by the Regional Director which has jurisdiction over the Nidhi Company.

A body corporate, a minor, and a trust cannot become a member of a Nidhi Company.

Yes, it is mandatory for Nidhi Companies to appoint an auditor under the Companies Act, 2013.

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