Nidhi Companies are unique business entities in India established to encourage savings and thrift among members. These companies can borrow from and lend to their members, making them an excellent platform for fostering savings, particularly for women from middle-class and economically weaker sections. Contributions to Nidhi Companies are exclusively from members or stakeholders, ensuring a regulated and legal framework for financial transactions. They play a significant role in reducing the circulation of black money by providing an official channel for lending and borrowing.
At Camwel Solutions LLP, we simplify Nidhi Company registration, handling all formalities, documentation, and filings with the Ministry of Corporate Affairs (MCA) as per legal requirements, ensuring a seamless process.
Eligibility for Nidhi Company
Registration
To register a Nidhi Company in India, the following criteria must be met:
Minimum Shareholders and
Directors: A Nidhi Company requires at least 7 shareholders and 3 directors at
the time of incorporation.
Resident Directors:
All directors must be Indian residents.
Minimum Capital
Requirement: The company must have a minimum paid-up equity share capital of
₹10 lakhs.
Unique
Name: The company’s name should include the word "Nidhi Limited" and not
resemble any existing business or trademark.
Restrictions on
Business Activities: Nidhi Companies cannot engage in chit funds, hire purchase
financing, leasing, or insurance businesses.
Compliance with
MCA Guidelines: The company must adhere to the provisions under Section 406 of
the Companies Act, 2013 and the Nidhi Rules, 2014.
At Camwel Solutions LLP, we ensure a smooth registration process by verifying eligibility, preparing documentation, and assisting with compliance under all applicable regulations.
A Nidhi Company, recognized under Section 406 of the Companies Act, 2013, operates in the non-banking financial sector in India. It facilitates borrowing and lending among its members and is also referred to as Permanent Funds, Benefit Funds, Mutual Benefit Funds, or Mutual Benefit Companies.
Here’s a streamlined process for registering a Nidhi Company in India:
Obtain Digital Signature Certificate (DSC): The first step involves obtaining a DSC for the proposed directors to digitally sign forms and documents.
Apply for Director Identification Number (DIN) : Directors must obtain their unique DIN from the Ministry of Corporate Affairs (MCA).
Business Name Approval : Submit an application to reserve a unique and compliant name for the company, including "Nidhi Limited.
Draft the Memorandum and Articles of Association : Prepare the Memorandum of Association (MOA) and Articles of Association (AOA) specifying the company's objectives and operational framework.
Filing Incorporation Documents : File the e-Memorandum of Association (eMoA) and e-Articles of Association (eAoA) along with other required incorporation forms through the MCA portal.
Incorporation Certificate : Once approved, the MCA issues a Certificate of Incorporation, marking the establishment of the Nidhi Company.
| Passport / Driver’s License / Election ID / Ration Card / Aadhaar ID |
| Identity proof of members. |
| Address proof of the company |
| Rental Agreement |
| Residential proof and address proof of the proposed directors and members |
| Memorandum of Association. |
| Director Identification Number |
| AOA, i.e., Article of Association |
1. How many people are required to register a Nidhi Company?
A minimum of 3 directors and 7 shareholders are required to register a Nidhi company in India.
2. What are the requirements to be a Director?
The Director needs to be over 18 years of age and must be a natural person.
3. Is an office required to start a Nidhi Company?
An address in India where the registered office of the Company will be situated is required. The premises can be commercial/industrial/residential where communication from the MCA will be received.
4. Do I have to be present in person to incorporate a Nidhi Company?
No, you don’t have to be present at our office or appear at any office for the registration of a Nidhi Company.
5. What is a Digital Signature Certificate?
A Digital Signature establishes the identity of the sender or signee electronically while filing documents through the Internet. The Ministry of Corporate Affairs (MCA) mandates that the Directors sign some of the application documents using their Digital Signature.
6. What are the documents required for Nidhi Company registration?
Identity proof and address proof are mandatory for all the proposed Directors of the Nidhi Company. PAN Card is mandatory for Indian Nationals. In addition, the landlord of the registered office premises must provide a No Objection Certificate for having the registered office in his/her premises and must submit his/her identity proof and address proof.
7. What is DIN?
Director Identification Number is a unique identification number assigned to all existing and proposed Directors of a Company. It is mandatory for all present or proposed Directors to have a Director Identification Number. Director Identification Number never expires and a person can have only one Director Identification Number.
8. Who regulates the Nidhi Companies?
The Ministry of Corporate Affairs regulates Nidhi Company and is also accountable for Nidhi Company Registration.