Nidhi means a company which has been incorporated exclusively with the object of developing the habit of thrift and reserve funds amongst its members, receiving deposits, and lending to its members only for their mutual benefit. It is governed under Section 406 of the Companies Act, 2013.
CONDITIONS FOR INCORPORATION AS A NIDHI COMPANY
- A company shall be a Public Company and shall have a minimum paid up equity share capital of five lakh rupees.
- No Nidhi shall have any object in its Memorandum of Association other than 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.
- Every “Nidhi” shall have the last words ‘Nidhi Limited’ as part of its name.
- Nidhis can only carry the business of accepting deposits and lending money to members and cannot carry the business of manufacturing and trading of goods or services.
- Nidhis do their business only with individual Members.
- Nidhi Company can’t issue Preference shares.
- Every Nidhi shall, within a period of one year from the date of its incorporation ensure that it has-
(a) not less than two hundred members;
(b) Net Owned Funds of ten lakh rupees or more;
(c) unencumbered term deposits of not less than ten percent of the outstanding
deposits as specified in rule 14; and
(d) ratio of Net Owned Funds to deposits of not more than 1:20.
PROCESS OF INCORPORATION OF NIDHI COMPANY
1. Application of DSC
2. Submit form Spice+ with MCA
- Spice+ Part A for Name reservation
- Spice+ Part B for
- DIN (Director’s Identification Number) allotment (upto three Directors only)
- Mandatory issue of PAN
- Mandatory issue of TAN
- Mandatory issue of EPFO registration
- Mandatory issue of ESIC registration
- Mandatory issue of Profession Tax registration (Maharashtra)
- Mandatory Opening of Bank Account for the Company and
- Allotment of GSTIN (if so applied for)
3. File declaration for commencement of business
DOCUMENTS REQUIRED FOR REGISTRATION
- Copy of PAN card of Directors cum subscribers
- Copy of ID proof and address proof of Directors cum subscribers
- Declaration from all the Directors and Subscribers under Rule 4, 5, 6 and 10 of NIDHI Rules, 2014
- Proof of Address of Registered office:
- Utility bill/Rent Agreement
- NOC of the landlord or the owner of the property
- Passport size photographs
THE J&P ADVANTAGE
Our CS Team at J&P handles all kinds of incorporation with utmost due diligence. From documents compiling to final incorporation our team works with utmost care leaving no potential loopholes. Our Team provides complete assistance in the matter under consideration.