Nidhi Company Registration in Mumbai

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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)

Sign Up

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Nidhi Company Registration Services in Mumbai

At Alonika.in, we provide expert assistance registering your Nidhi Company. Our team of professionals offers comprehensive guidance through Nidhi Company Registration Services in Mumbai. We help you set up and operate a compliant and efficient company.

A Nidhi Company is a non-banking financial company (NBFC) in India, governed by Section 406 of the Companies Act, 2013, and regulated under the Nidhi Rules, 2014. It is registered as a public limited company with the primary aim of encouraging savings among its members while providing them with financial assistance through loans. They can only take deposits from and lend to members, implying that cash contributed to a Nidhi business comes from its members (shareholders) and is only for them. It acts as a mutual benefit society, fostering a culture of saving.

Benefits of Starting a Nidhi Company

Here’s why you should consider establishing it:

1. Simplified Regulatory Framework

They are governed by the Ministry of Corporate Affairs (MCA) and regulated under the Companies Act, 2013, but with fewer compliance requirements than other financial institutions. Such an arrangement makes establishing and maintaining it more manageable while ensuring a safe and transparent operating framework.

2. Low Initial Capital Requirement

Unlike other companies, it has a relatively low capital requirement, making it an affordable option for small investors and entrepreneurs. You can start your business with as little as Rs. 10 lakh in initial capital.

3. Promotes Savings and Investments

They encourage savings among community members, which leads to enhanced financial discipline. Members can pool resources and provide financial assistance to one another, making it a sustainable source of funds for personal and business needs.

4. Access to Affordable Loans

One of the key advantages is that it provides easy access to affordable loans for its members. These loans typically come at lower interest rates than banks and other financial institutions, making them an attractive option for individuals needing financial assistance.

5. Mutual Benefit Principle

It operates on the principle of mutual benefit. The goal is to lend to members at fair rates to improve the community’s finances. This system fosters trust and collaboration among its members.

6. Limited Liability

Under the Companies Act, it provides its promoters and shareholders with limited liability protection. Protecting personal assets ensures a safer investment if the company encounters financial difficulties.

7. Tax Benefits

It is eligible for certain tax exemptions and advantages under Section 80G of the Income Tax Act, which can enhance its financial position. The tax benefits can be advantageous for the growth and profitability of the company.

Documents Required for Nidhi Company Registration in Mumbai

  • Every proposed director must obtain a Director Identification Number (DIN) from the Ministry of Corporate Affairs (MCA).
  • PAN card for all proposed directors and the company itself.
  • Recent utility bills, such as electricity or water bills, or bank statements for all directors and members. These must not be older than two months.
  • Passport-sized photographs of all proposed directors and members must be submitted.
  • Government-issued identification proof of all directors and members, such as Aadhar Card, Passport, or Driver’s License.
  • Documentary proof of the registered office, such as a rental agreement/lease deed or ownership proof. This should indicate the registered office address of the Nidhi company.
  • If you own the business premises, you must provide proof of ownership, such as a property deed or land documents.
  • A No Objection Certificate (NOC) from the landlord is required if the office is rented.
  • A legal document that outlines the objectives, activities, and scope of operations.
  • A document specifies the rules and regulations for internal governance.

These documents are required to apply for registration under India’s Ministry of Corporate Affairs (MCA).

Nidhi Company Registration Process with Alonika.in

The first step is obtaining the Director Identification Number (DIN) and a Digital Signature Certificate (DSC) for all the proposed directors of the Company. We assist you in applying for DIN and DSC. The directors can skip this step if they possess a valid DIN and DSC.

The next step involves drafting the Memorandum of Association (MoA) and Articles of Association (AoA). These documents outline your company’s operations’ objectives, rules, and regulations. We help you prepare these legal documents in compliance with the Ministry of Corporate Affairs (MCA) guidelines.

Once the MoA and AoA are ready, we assist in selecting and submitting three preferred names for your Nidhi Company to the MCA for approval. The MCA will review the options and approve one name. This name will be valid for 20 days, during which you must finalize your registration. Our team ensures your name is unique and meets the legal criteria.

After receiving the name approval, we file your application with the Registrar of Companies (ROC). This includes submitting the MoA, AoA, and a subscription statement as part of the process. To prevent delays, our team ensures the accurate submission of all required documents.

The ROC will process your application and issue the Certificate of Incorporation (CIN) within 15-20 days post submission. This certificate officially recognizes your company, and you can begin operations under its legal identity.

After receiving the Certificate of Incorporation, we help you apply for the Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN). These are essential for tax and compliance purposes. Additionally, we assist you in opening a dedicated Nidhi bank account using your MoA, AoA, Certificate of Incorporation, and PAN.

Why Choose Us for Nidhi Company Registration Services in Mumbai?

Expert Legal and Financial Guidance

Our team has years of experience in registration services and can help you. We ensure it complies with all legal and regulatory requirements, making the process smooth and stress-free.

Fast and Efficient Processing

We ensure the quick registration of your Nidhi Company. From obtaining necessary approvals to filing documents with the ROC, we work efficiently to get your company up and running without unnecessary delays.

End-to-End Services

We offer comprehensive solutions to cover every aspect of your company setup. We handle everything for you. You can rely on us for everything from start to finish.

Affordable and Transparent Pricing

We believe in providing value for money. Our services are priced affordably, with no hidden fees or surprise charges. You’ll always know what you’re paying for upfront.

Compliance and Legal Assurance

Our legal team ensures it meets all the compliance requirements of the Ministry of Corporate Affairs (MCA) and other regulatory bodies. We care for your legal formalities so that you can focus on your business goals.

Dedicated Support and Consultation

We offer personalized support to guide you at every step. We provide professional advice and assistance if you need help choosing a name or understanding your legal responsibilities.

Partner with Alonika.in for Seamless Company Setup!

We simplify the process of Nidhi Company Registration Services in Mumbai. With our expert guidance, affordable pricing, and commitment to compliance, you can confidently take the first step toward building your business. Please allow us to manage all the legalities so you can concentrate on expanding your business.

Contact us today and join the growing community of successful Nidhi companies!

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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