Nidhi Company Registration

Nidhi Companies are non-banking financial companies. With the continuous growth of industries, various businesses require investments. Hence to facilitate these businesses with easy loans and funds, Nidhi limited companies came into existence. Nidhi limited company provides all the solutions to businesses with funds problems and reduces easy fund availability for its members. Nidhi company registration allows transactions only between its members, which includes taking deposits from its members and lending money to its members. Nidhi company does not require any license from RBI to conduct its business & has now become the perfect way to start your lending business in India. Nidhi company registration can be done as a public company and should have Nidhi Limited at the end of its name.

• Nidhi Company Registration online or Nidhi limited registration requires at least seven members out of which three should be designated, directors. However, after registration, they should acquire at least 200 members within one year.
• Nidhi company registration online requires a minimum equity share capital of Rs 5 lakh, but its net owned funds must be increased to at least Rs 10 lakhs. Nidhi Bank Registration is necessary under the Companies Act, 2013.
• Even though Nidhi company registration online is restricted, it is necessary to ensure that the objective mentioned in the memorandum of association is to cultivate the habit of frugality and savings among the members, to accept and lend to its members only for their mutual benefit.

After Nidhi bank registration or Nidhi limited registration, Nidhi Company should meet the following capacities:

• The company has at least 200 shareholders (members)
• The Nidhi should have net owned funds of Rs. 10,00,000 or more
• They are required to maintain deposits of at least 10% of outstanding deposits.
• All Nidhi companies must maintain a ratio of not more than 1:20 of net owned funds to deposits.

Nidhi company registration online can be done online as well. The following documents must be present for Nidhi Company Registration Online:

• PAN cards of all directors will need to be present for Nidhi registration.
• Aadhar cards of all directors must be present for Nidhi registration.
• A voter ID card/ Passport must be present for Nidhi registration.
• Passport-size photograph required for Nidhi registration.
• Bank statements for the last two months(latest) need for Nidhi registration.
• "In case you have a Rented Property:
  Rent agreement/lease Deed/NOC from the owner" needs to be present for Nidhi finance company registration.
• "In case you have an Owned Property:
  Electricity bill, telephone bill, Property Receipt" is required for Nidhi finance company registration.

5 simple steps for Nidhi Limited Registration:

• Preparing Digital Signature Certificate (DSC) and Director Identification Number (DIN)
• Selecting a unique name of the company
• Arranging Forms, Documents, AOA & MOA of your Company.
• Filing e-forms with MCA.
• Allocation of COI and COC.

These steps are required for Nidhi bank registration.

As per Nidhi Rules 2014, Nidhi companies are not authorized to deal with the following businesses:

• Business of Chit Fund, Lease Finance, Installment Purchase Finance, and Acquisition of Securities issued by any Company.
• Issuance of preference shares, debentures, or debt instruments in any name or form
• Opening a current account with its serving members
• Acquiring another entity through the purchase of securities or controlling the BOD composition of any other company in any way
• The conclusion of the legal regulation on the change of its management in the absence of the board of directors was approved by a special resolution and the consent of the regional director operating in the relevant jurisdiction.
• Carrying out activities that deviate from the subject of business.
• Accepting or lending deposits to non-members.
• Pledge of the member's property as security
• Accepting deposits or providing funds to anyone from the company
• Entering into any partnership arrangements for borrowing or lending activities
• Using any form of advertising to obtain a deposit
• Payment of incentives or mobilization of deposits from serving members or for the deployment of funds or provision of loans.