NIDHI Company Registration - All You Need to Know

Contact our Nidhi company consultant for expert assistance and register your NIDHI company with JR Compliance - India's leading compliance service provider.

What is NIDHI Company Registration? 

National Initiative For Developing and Harnessing Innovations (NIDHI) is a financial institution or NBFC that involves deposits and money lending to its members. Moreover, NIDHI company is registered under the Companies Act, 2013, and is governed according to the guidelines of the Reserve Bank of India (RBI)

However, as NIDHI company deals with its shareholders only, RBI has exempted notify NIDHI company from core RBI Acts, and other directions apply on NBFC. 

In simpler words, NIDHI is the company that is incorporated with the motive of cultivating the habit of thrift, saving among its members, receiving deposits from members, and lending money to its members for their mutual benefit.

Who regulates the NIDHI company?

The Ministry of Corporate Affairs regulates the NIDHI company or Nidhi company registration. Though the Company Act provisions regulate NIDHI companies, they are exempted from specific Act provisions applicable to other companies.

Is NIDHI company a Non-Banking Financial Company (NBFC)?

NBFC included NIDHI company in its definition, which works fundamentally in the unorganized money market. But, on the contrary, since 1997, NBFCs are majorly regulated by RBI. 

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Benefits of NIDHI Company Registration

Formation of a NIDHI company is easy because you have to fulfill a few requirements. Some of the conditions you are required to satisfy are, 

  • For NIDHI online company registration, you must at least have seven members. Out of seven, three must be appointed as directors.
  • Effortless registration process.
  • Easy and hassle-free documentation.

Moreover, from earlier mentioned points, it is clear that the NIDHI company/ Nidhi finance company formation is easy and less complex.

Net-owned funding signifies a transaction where the owner invests money in a business to increase the funds for the same. As mentioned earlier, the net owned funding ratio of a NIDHI company is 1:20, so, for instance, if you would invest Re. 1 in a business, you could raise the fund of Rs. 20 from the same. 

Thus, this feature of NIDHI company/ Nidhi finance company makes it cost-effective for new business owners, helps diversify the business, and grows the business with more capital.

By its nature, NIDHI company/ Nidhi finance company is a kind of NBFC, which RBI regulates. However, RBI has provided its exemption from stringent compliances. Thus, NIDHI company follows the NIDHI Rule, 2014, which guides the activities and working of a company. 

As per NIDHI Rules, 2014, NIDHI companies/ Nidhi finance company can accept deposits and give loans to their members, reducing the risk of non-payment of loans compared to other financial businesses. 

Thus, it is the safest passageway to provide loans to its members at low-interest rates, increasing member savings.

Applicability of NIDHI Rules (Rule 2)

  • Under sub-section (1) of Section 620A, Companies Act,1956, companies declared as NIDHI or Mutual Benefit Society.
  • The company incorporated as a NIDHI company pursuant under the provisions of Section 406 of the Act.
  • A company is functioning on the lines of NIDHI company or Mutual Benefit Society. However, either does not has applied for registration as a NIDHI company or Mutual Benefit Society or has applied for registration or is waiting for a notification to be a NIDHI or Mutual Benefit Company under Companies Act, 1956 and sub-section (1) Section 620A. 

Pre-Requisites For NIDHI Incorporation | Pre-Requisites For NIDHI Online Company Registration

Should have at least 7 members and 3 directors.

Minimum capital requirements for NIDHI incorporation is Rs 5 lakh.

NIDHI company is not authorized to issue preference shares.

Should encourage saving habits through deposit and lending money to its members.

Director Identification Number (DIN) of directors.

Documents Required For NIDHI Company Registration

  • Passport size photographs. 
  • Digital signature certificate (DSC).
  • NOC signed by owner or landlord.
  • Director Identification Number (DIN).
  • Memorandum of Association (MOA) and Article of Association (AOA).
  • Address proof and residence proof.
  • Passport, in case the company includes foreign directors. 
  • PAN Card for the company’s financial transaction and taxation process.

Our Nidhi online company registration consultants will invest their sustain efforts in providing high-standard services to our clients. Thus, we will ensure a smooth procedure.

To make the process of Nidhi online company registration unchallenging, our finest NIDHI online company registration consultant will educate you concerning registration process without any hassle and challenge. Above all, we guarantee to avoid any inaccuracy in Nidhi online company registration/ Nidhi finance company registration.

NIDHI Company Registration Process | Nidhi Finance Online Company Registration Process

To commence the NIDHI company registration process, first, procure the Digital Signature Certificate and Director Identification Number. 

Next, for name approval, you are required to file an MCA application. For this, the name of the company should be unique and must not violate intellectual property rights. 

After filling the application, submit the required documents to the Registrar of Companies, through INC Form 32, including MOA, AOA, and mention the fundamental objective of establishing the NIDHI company. 

After reviewing the documents, the company can obtain the certificate of incorporation. 

As you obtain the certificate of incorporation, you are required to apply to obtain PAN and TAN.

At last, open a bank account on the business’s behalf for money transactions. 

Our Role in Nidhi Company Registration Process| Nidhi Finance Online Company Registration

Our Nidhi company consultant will provide you with complete support in the process of registration.

Our NIDHI company registration consultant will provide you with assistance in documentation.

Our Nidhi company consultants will ivest our sustain efforts in findig the most appropriate name of the company.

Our Nidhi company consultant will assist you in keeping track of your application.

Our Nidhi company consultant will provide you with the most satisfactory solution to your concern regarding Nidhi company registration process.

Ministry under which NIDHI registration done

Conclusion

As it seems, Nidhi online company registration seems to be a wise decision because it provides various advantages such as increase funds, less regulations, and low risk of non-payment of loans, which is why, it is considered important to register a Nidhi company.  

However, obtaining the same could not be as easy as it seems because it requires proper knowledge regarding documents required for Nidhi company registration/ Nidhi finance company and filling in the relevant details in the application of Nidhi finance company. If not, it could result in the rejection of an application. 

Consequently, JR Compliance, Delhi's leading compliance service provider possess experience of 8+ years, has Nidhi company consultants who guarantee to provide you prompt assistance from the first to last step of Nidhi finance company registration. We are positive that we are the best NIDHI compliance consultants considering that we are perfectly aware of Nidhi company compliances, Nidhi company rules, Nidhi companies are regulated by, Nidhi bank registration process, Nidhi company registration process and Nidhi Finance Company - you have reached the best.

Hence, for expert and professional services, contact our NIDHI company registration consultant immediately for Nidhi online company registration/ Nidhi finance company.

Have Questions? We have got answers!

Who regulates the NIDHI company?

Ministry of Corporate Affairs has the authority to regulate the NIDHI company, including it is accountable for NIDHI company incorporation.

What are the requirements to fulfil to become a member of a NIDHI online company registration?
  • The member of NIDHI company must be of 18 years.
  • A minor, body corporate, or trust can not be a membe rof NIDHI company.
Can NIDHI company performs its activities outside the State?

NO, a NIDHI company is not authorized to perform its activities outside the State.

Can a NIDHI company advertise their activities?

No, a NIDHI company is not authorized to advertise its activities.

Do I need an office to operate a NIDHI online company registration?

To operate a NIDHI company, a residential address is enough, there is no requirements of an office space.

Can a NIDHI company issue unsecured loans?

No, a NIDHI company can not issue unsecured loans. Yet, it is authorized to issue secured loans.


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The information provided on this website is with the sole intention to give information, not a professional opinion. Moreover, our website might include copyrighted material that may or may not have been specifically authorized by the owner, however, used for the purpose of providing information. That constitutes a “fair means” under Section 52 of the Copyright Act, 1957.


Intellectual Property: This site is our proprietary intellectual property. All the graphics, media, editorial content, and website design (altogether, “content”) used are the intellectual property of JR Compliance which are protected by Trademark, Copyright, and other applicable intellectual property laws.

Any content or mark might be copied, reproduced, republished, and displayed publicly for any profit-oriented purpose whatsoever, require our prior written permission, otherwise, an offender may have to face legal consequences. 



Disclaimer: All to whom it may concern, JR Compliance is not liable for any direct, indirect, incidental, special, or consequential damages from the use of any information contained on our website, or from any action/ decision taken as a result of using the site.

The information provided on this website is with the sole intention to give information, not a professional opinion. Moreover, our website might include copyrighted material that may or may not have been specifically authorized by the owner, however, used for the purpose of providing information. That constitutes a “fair means” under Section 52 of the Copyright Act, 1957.


Intellectual Property: This site is our proprietary intellectual property. All the graphics, media, editorial content, and website design (altogether, “content”) used are the intellectual property of JR Compliance which are protected by Trademark, Copyright, and other applicable intellectual property laws.

Any content or mark might be copied, reproduced, republished, and displayed publicly for any profit-oriented purpose whatsoever, require our prior written permission, otherwise, an offender may have to face legal consequences. 


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