Nidhi Company

Company

A Company is the most acknowledged and accepted form of Business Structure worldwide. Not only it attracts investors but also encourages the entrepreneurs to represent their business in a form which is common and familiar to all. Further, it provides other benefits too such as that of having a perpetual succession and limited liability. Since a company has a separate legal identity from that of its promoters, it is capable of holding funds and properties and to sue and be sued in its own name. It is also eligible to borrow funds in different forms such as loans, debentures, etc.

Nidhi Company

Brief Idea :

A Nidhi company is a Non-Banking Financial Company (NBFC) incorporated with the object of cultivating the habit of thrift and savings amongst its members, receiving deposits from and lending to, its members only, for their mutual benefit. Like every other NBFC, Nidhi companies also comes under the purview of Reserve Bank of India, however, considering the fact that these companies deals only with their shareholders, they have been exempted from the core rules generally applicable to other NBFCs.

Minimum Requirements :

  • Directors - 3
  • Members - 7
  • Share Capital - ₹ 5 Lakhs Only

Also, within a period of one year of its incorporation:

  • Members - 200
  • Net Owned Fund (NOF)- ₹ 10 Lakhs
  • Unencumbered Term Deposit- 10% of Outstanding Deposits
  • Ratio of NOF to Deposits- not more than 1:20
  • Other Rules applicable on Nidhi Company can be found here.

Documents :

  • PAN Card of all Directors and Members (Self attested)
  • Identity Proof of all Directors and Members - Aadhar Card or DL or Voter ID or Passport (Self attested)
  • 1 Passport size photo of all Directors and Members
  • Address Proof of all Directors and Members- Bank Statement/ Electricity Bill/ Telephone Bill/ Mobile Bill (Self attested and not older than 2 months)
  • Proof of Office address (Conveyance/ Lease Deed/ Rent Agreement along with rent receipts/ Tax paid Receipt/ NOC)
  • Copy of Government issued Utility Bill of Office address (Not older than 2 months)

Time :

20 to 30 working days subject to ROC processing time

Procedure :

  • Name Reservation
  • Preparation of Digital Signature Certificate
  • Application for Director Identification Number (DIN)
  • Application for Incorporation
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