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Nidhi Company Registration

Nidhi Company Registration is the process of establishing a non-banking financial company in India, known as a "Nidhi Company." These companies aim to encourage thrift and savings among members, primarily by accepting deposits from them for mutual benefits. Governed by the Ministry of Corporate Affairs and Nidhi Rules, they focus on fostering a savings and lending culture within a community.

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Steps for Nidhi Company Registration

  • Minimum Requirements - Ensure seven members and three directors, all individuals.
  • DSC and DIN - Obtain Digital Signature Certificates and Director Identification Numbers for directors.
  • Name Approval - Apply for name availability adhering to naming conventions.
  • MoA and AoA - Draft Memorandum of Association and Articles of Association.
  • License Application (Form NDH-4) - File Form NDH-4 for a license with the Registrar of Companies (RoC).
  • RoC Scrutiny and Incorporation (Form INC-32) - After RoC scrutiny, file Form INC-32 (SPICe) for incorporation.
  • PAN, TAN Application, and Commencement - Apply for PAN and TAN, and commence operations after successful incorporation.

Documents Required

  • PAN and Aadhaar copies for directors and members.
  • Passport-sized photos of directors and members.
  • Proof of residence (utility bills or bank statements).
  • Registered office proof: utility bill or rental agreement with NOC.
  • Declarations and affidavits by directors and subscribers.
  • MoA and AoA signed by all subscribers.
  • Declaration of no conviction or disqualification by directors.
  • License application (Form NDH-4) for RoC.
  • Declaration of deposits from initial members.
  • Additional documents as required by MCA or RoC.

Our Process to Work

Taxperts Associates streamline Nidhi Company registration with a comprehensive process, ensuring compliance and efficient incorporation.

  • Consultation - Reach out to Taxperts Associates for Nidhi Company Registration guidance
  • Documentation Check - Submit PAN, Aadhaar, photos, and other required details for directors and members.
  • DSC and DIN - Obtain Digital Signature Certificates (DSC) and Director Identification Numbers (DIN) for directors.
  • Name Approval - Apply for name approval through the MCA portal, ensuring compliance.
  • MoA and AoA - Draft Memorandum of Association (MoA) and Articles of Association (AoA).
  • License Application (Form NDH-4) - File Form NDH-4 for a license with RoC, including necessary documents.
  • Incorporation (Form INC-32) - File Form INC-32 (SPICe) for incorporation, providing details of directors, subscribers, and the license obtained.
  • PAN, TAN Application, and Commencement - Apply for PAN and TAN, and commence operations post-successful incorporation.

Benefits

  • Promotes Savings Culture - Nidhi Companies encourage thrift and savings among members.
  • Community Financial Cooperation - Operates for the mutual benefit of members, fostering financial cooperation.
  • Limited Liability Protection - Members enjoy limited liability protection for personal assets.
  • Simplified Compliance - Benefits from simplified regulatory requirements, making it accessible for smaller communities.
  • Localized Banking Services - Provides basic banking services at the local level, contributing to community development.
  • Financial Inclusion - Enhances financial inclusion by serving the financial needs of small and medium-income groups.

Frequently Asked Questions

A Nidhi Company is a type of non-banking financial company (NBFC) in India that operates for the mutual benefit of its members, encouraging savings and thrift.

The primary objective is to cultivate the habit of savings and thrift among its members and to accept deposits from them for mutual benefit.

Nidhi Companies focus on providing financial services within a specific community or group, operating for the mutual benefit of their members, and have simplified regulatory requirements compared to other NBFCs.

A Nidhi Company must have a minimum of seven members (individuals) and three directors. All directors and members must be individuals.

No, a Nidhi Company can only accept deposits from its members, and it is prohibited from dealing with non-members.

There is no specific minimum capital requirement for Nidhi Company registration.

No, a Nidhi Company cannot be converted into any other type of company.

A Nidhi Company is restricted in the utilization of funds and is primarily focused on lending to its members for their mutual benefit.

No, Nidhi Companies are exempted from obtaining RBI approval for core banking activities.

Post-registration tasks include opening a bank account, obtaining PAN and TAN, and initiating operations related to thrift and savings.

At Taxperts Associates, our seasoned tax consultants bring unparalleled expertise to guide you through intricate tax landscapes. With a commitment to precision and personalized service, we empower clients to navigate financial complexities with confidence

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