Nidhi Company Registration in Jaipur

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Basic Package @ Rs 18000/-*

7 Digital Signature Certificates

3 Director Identification Numbers

1 Name Approval Application under SPICe+

Company Incorporation using SPICe+

Stamp duty on authorised capital of 5 Lakh

MOA & AOA

PAN & TAN

SSI/MSME Registration

GST Registration

1st Month GST Return

ESI and PF Registration

INC 20A Commencement of Business Certificate

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Moderate Package @ Rs 24000/-*

7 Digital Signature Certificates

3 Director Identification Numbers

1 Name Approval Application under SPICe+

Company Incorporation using SPICe+

Stamp Duty on authorised capital of 5 Lakh

MOA & AOA

PAN & TAN

SSI/MSME Registration

GST Registration

3 Months GST Return

ESI and PF Registration

INC 20A Commencement of Business Certificate

ISO 9001:2015 (QMS)

Sign Up

Advanced Package @ Rs 33000/-*

7 Digital Signature Certificates

3 Director Identification Numbers

1 Name Approval Application under SPICe+

Company Incorporation using SPICe+

Stamp Duty on authorised capital of 5 Lakh

MOA & AOA

PAN & TAN

SSI/MSME Registration

GST Registration

6 Months GST Return

ESI and PF Registration

INC 20A Commencement of Business Certificate

ISO 9001:2015 (QMS)

1 Trademark Application (After MSME Registration)

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Nidhi company is a type of NBFC, Incorporated as a Public Limited Company and should have NIDHI LIMITED as a suffix of the Name. Nidhi Companies are different from NBFC and Public Limited Company incorporated with a sole object of borrowing and lending money to its members for mutual benefits.

Nidhi Company does require the license from Reserve Bank of India (RBI) to operate; and not regulated by RBI as compared to NBFC but need to follow some guidelines issued by RBI time to time for accepting deposits.

Generally group of person operate a Nidhi Company to promote the habit of saving and helping the group member.

Alonika.in is the right option to begin the journey. Get NIDHI Company registered by Professionals like Chartered Accountants and Company Secretaries. Just contact us for NIDHI Company Registration and stay focused towards the dreams of success.

Documents Required for Section 8 Company Registration

  1. PAN Card and AADHAR Card of all the proposed Members and Directors. Passport in case Foreign Citizen.
  2. Bank Statement of Proposed Members and Directors not older than 2 months
  3. Latest Passport Size Photographs of Members and Directors
  4. Contact details of all the proposed Members and Directors
  5. Proposed Name for Company
  6. Business Object
  7. Education Qualification of Proposed Directors and Members
  8. Occupation of Proposed Directors and Members
  9. Shareholding Ratio
  10. Address details of registered place of business (Electricity Bill / Rent deed / Copy of registry / Consent and NOC of Owner)

Benefits of NIDHI COMPANY

Ease of incorporation:- It is easier to commence business in the NBFC sector as a Nidhi Company. A Nidhi company requires a paid-up equity share capital of 5 lakhs to begin with while an NBFC requires a net worth of 2 crores. Therefore it is easy to set up a Nidhi Company.

Ease of doing business:- A Nidhi Company elects 3 out of the minimum seven members as directors. Due to the small size of such companies and also their management is fairly easy.

Easier to obtain loans:- The members can get loans at lower rates as compared to the market and at the same time involve themselves with less formalities. The members can get higher returns on their savings as well.

Less paperwork and compliance:- The RBI gives exemptions to them on matters relating to yearly compliance and tax assessments. It gets registered in a short span of time ranging from a few days to a maximum of a few weeks. It is the only form of a loan company that does not require a license from the RBI.

Basic Preliminary formalities:- It can be started with a minimum of 7 members and a minimum paid up share capital of Rs. 5 lakh which needs to be extended to Minimum of 200 members and capital of Rs. 10 lakh within 1 year of incorporation. Further, the capital can be invested within six months of registration. It also does not require a license from the RBI as mentioned above and also there is no maximum cap limit on number of members.

No outsider interference:- When compared with other financial institutions or other companies of similar nature, Nidhi companies fare better. These companies are both owned as well as managed by their members. Hence, these are effectively managed. They have little to no interference from the RBI and absolutely no intervention from outsiders.

Community growth:- Since the lending and borrowing occurs within the members of the company, this promotes the community by adding to the wealth of its members as well as funding their business development, personal needs etc.

Low risk of non-payment of loans:- Since these societies function on trust, the risk of defaulting by the members is very low. Additionally, there is a collateral attached to the loaned amount hence the loans are secured. A member can take loans on the basis of the amount deposited in the company. This is the concept of Net owned funds and we discuss this point below as well as under the Guidelines – After incorporation.

Difference between NBFC and Nidhi Company

S. No.BasisNBFCNidhi Company
1.GovernanceGoverned by Indian Banking Regulation Act, 1934Governed by Companies Act, 2013
2.Capital requirementRs. 2,00,00,000 /- MinimumRs. 5,00,000/- Minimum
3.CompliancesCompliance issued By RBI to be followedLess Compliances in comparison to NBFC
4.RestrictionsNo Such RestrictionsNidhi Company cannot do business of chit funds, hire purchase finance, lease finance, insurance or acquisition of securities issued by the Body Corporate.
5.DealingCan deal with general publicCan only deal with its Members

Frequently Asked Questions

Nidhi Company is a Company which carries on the business of accepting deposits and lending the same on demand. Nidhi Company is similar to NBFC but the only basic difference between the two is that Nidhi Companies accept deposits only from its members. The main aim of these companies is to work for the mutual benefit of its members. These companies are not entitled to carry on the business of Hire Purchase Financing, Insurance, Chit Funds and Acquisition of securities or Issue of any Debt Instruments.

Following provisions are applicable to Nidhi Companies.  
  1. As they are incorporated into the nature of Public Company so rules and regulations of Companies Act, 2013 are applicable.
  2. RBI provisions related to Interest rate payable on deposit are applicable to Nidhi Companies. But the core provisions of RBI are not applicable to Nidhi Companies as RBI has exempted the Nidhi Companies from the same.
  3. Nidhi Rules, 2014.
As to incorporate a Nidhi Company it is to be registered as a Public Limited Company. So, to incorporate a Nidhi Company it is necessary to fulfill following criteria:  
  1. It should have at least 3 Directors.
  2. It should have at least 7 Members.
  3. The main objective to be written in the MOA should be to cultivate the habit of thrift and savings among its members. And it can accept deposits and lend money only to its members and shall work for the mutual benefit of its members.
Once the Nidhi Company is incorporated it must fulfill the following requirements:  
  1. It must have at least 200 members/shareholders.
  2. Minimum Net Owned Fund should be Rs. 10 Lakhs.
  3. Unencumbered term deposit must be at least 10% of the term deposit.
  4. The ratio of Net Owned Fund to term deposit should not be less than 1:20.
The exclusive advantage which is offered by Nidhi Companies are:
  1. It is a single office institution governed exclusively by its members with no involvement of the third party.
  2. Provide loans at minimal interest rates and minimum documentation.
  3. Secured investments are guaranteed by such companies.

Yes, the Deposits with such companies are safe and secure because the Ministry of Corporate Affairs and Reserve Bank of India has framed rules and regulations to ensure the safety and security of Deposits. And the Nidhi Company compulsorily abide by the rules of Central Government.

The Nidhi Company uses the funds in lending to shareholders as per Nidhi Rules. It lends such money in the form of small loan for business and finance.

Any person who is above 18 years of age as per the standard age proof can become a member of the Nidhi Companies. The person desirous of becoming a member should have valid ID Proof and Address Proof.

A minor shall not be admitted as a member in a Nidhi company, But deposits may be accepted in the name of minor, if they are made by natural or legal guardian who is a member of the respective Nidhi.

Following are the documents required for Nidhi Company Registration:
  1. Digital Signature Certificate of all the Directors.
  2. Directors Identification of all the Directors.
  3. Copy of a PAN Card.
  4. Copy of Identity Proof (i.e. Voters ID Card, Driving License, Aadhar Card).
  5. 2 Passport size photograph.
  6. Registered Office Address Proof (Electricity Bill, Telephone Bill).
  7. If the registered address is a rented premise then rent agreement with rent receipt.

Nidhi can provide loans to its members only after the members have given/ provided some securities like gold, silver jewelry or any type of financial securities against the loan.

Nidhi Companies are not allowed to do the following business:
  1. They are not allowed to start the business of chit funds, Insurance, Hire Purchase Finance, Leasing Finance and acquisition of shares issued by companies.
  2. Nidhi Company cannot issue securities such as preference shares, debentures etc.
  3. They are prohibited from opening any current account with its members.
  4. It cannot enter into partnership for doing lending and borrowing business.
  5. It is not allowed to acquire any other company.

The principle of mutual benefit has been to pool the savings from members and lend only to members and never have dealing with Nonmembers.

Nidhi are not expected to engage themselves in the business of Chit Fund, hire purchase, insurance or in any other business including investments in shares or debentures.

Nidhi shall not issue preference shares.

Every Nidhi shall, within a period of one year from the commencement of these rules, ensure that it has not less than two hundred members;

The Director shall be a member of Nidhi. Therefore, it is mandatory for director of Nidhi Company to hold shares.

The Director of a Nidhi shall hold office for a term up to ten consecutive years on the Board of Nidhi. The Director shall be eligible for re-appointment only after the expiration of two years of ceasing to be a Director.

Every Nidhi shall allot to each deposit holder at least a minimum of ten equity shares or shares equivalent to one hundred rupees.

A Nidhi shall not accept deposits exceeding twenty times of its Net Owned Funds (NOF) as per its last audited financial statements.

A Nidhi shall not accept deposits exceeding twenty times of its Net Owned Funds (NOF) as per its last audited financial statements.

A Nidhi shall not declare dividend exceeding twenty five per cent or such higher amount as may be specifically approved by the Regional Director for reasons to be recorded in writing.

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