Nidhi Company Registration - Expert Support, Easy Online Setup in India
What is a Nidhi Company?
A Nidhi Company is a type of NBFC (Non-Banking Financial Company) engaged in borrowing and lending money exclusively among its members. The Nidhi Company meaning lies in fostering a habit of savings and thrift among its members, with a focus on community-based financial inclusion. Unlike other NBFCs, a Nidhi Co does not require a license from the Reserve Bank of India (RBI), making its incorporation process more straightforward.
Key Features of a Nidhi Company:
- Membership-Based Structure: Transactions, including deposits and loans, are restricted to members only.
- No RBI License Required: Nidhi Companies operate without the need for RBI licensing.
- Encourages Savings: It promotes saving habits and offers loans to members at competitive rates.
- Less External Regulation: While regulated by the Ministry of Corporate Affairs (MCA), it is exempt from RBI’s strict regulations.
Advantages of Incorporating a Nidhi Company
- Easy and Economical Setup: Requires a lower initial capital and has a simpler registration process compared to other financial entities.
- Limited Liability: Members’ liability is limited to their shareholding.
- Financial Inclusion: Provides easy access to funds for its members.
- Secured Loans at Low Interest Rates: Loans are available to members at reasonable terms.
- Savings Culture: Builds a culture of savings within the community.
Eligibility Criteria for Nidhi Registration
- Minimum 7 Members: At least 7 members, including a minimum of 3 directors.
- Minimum Capital Requirement: Requires Rs. 10 lakhs in paid-up equity share capital.
- Membership-Based Lending and Borrowing: Transactions restricted to members only.
- Registered Office Address: Must have a registered office in India.
Documents Required for Nidhi Company Registration
For Directors/Shareholders:
- PAN Card (mandatory for Indian nationals).
- Identity Proof (Aadhar Card, Voter ID, Passport, or Driving License).
- Address Proof (Utility Bill, Bank Statement, etc.).
- Passport-sized photographs.
For the Company:
- Proposed name of the company.
- MOA (Memorandum of Association) and AOA (Articles of Association) outlining objectives and rules.
- Proof of registered office address (e.g., rent agreement, electricity bill).
- NOC from the property owner, if applicable.
Procedure to Register a Nidhi Company in India
- Obtain DSC (Digital Signature Certificate).
- Apply for DIN (Director Identification Number).
- Name Approval: Secure approval for the company’s name.
- Draft MOA and AOA: Outline the company's objectives and operational framework.
- Incorporation and Compliance Filing: Submit the incorporation application along with necessary compliance forms.
Post-Incorporation Compliance for Nidhi Companies
- Minimum Membership Requirement: Must have at least 200 members within the first year.
- Net Owned Funds (NOF): Maintain a deposit-to-NOF ratio of 1:20.
- Lending Restrictions: Loans capped at Rs. 2 lakhs (unsecured) and Rs. 15 lakhs (secured).
- Annual Returns and Filings: File returns and financial statements with MCA; accounts must be audited annually.
- No Advertisements: Membership acquisition is strictly word-of-mouth and cannot be advertised.
Why Choose YKG Global for Nidhi Company Registration?
- Expert Consultation: Our team of Nidhi Registration experts provides tailored guidance for your business needs.
- Transparent Pricing: Competitive pricing with no hidden charges ensures value for money.
- Fast and Smooth Process: Our streamlined approach ensures your Nidhi Co registration is completed within 10-15 working days.
- Experienced Support: Benefit from years of expertise and a deep understanding of Nidhi Company registration regulations.
At YKG Global, we make Nidhi Company registration hassle-free and efficient. Our dedicated team of professionals ensures a smooth setup process so you can focus on fostering financial inclusion and savings within your community.
Contact us today to begin your Nidhi Company journey!.
