Checklist for Nidhi Company Registration

Nidhi Company is a company which belongs to the non-banking financial sector. The core business of Nidhi Company is to borrow and lend money to its members. For registration of a Nidhi Company, there is no necessity to obtain a license from Reserve Bank of India. You can register a Nidhi company as a public company.

In this blog, we will briefly elaborate benefits of Nidhi Company registration along with the requirements, process and documents need for Nidhi Company registration. Let's explore the knowledge of Nidhi Company registration.

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Nidhi Company Registration

What are the benefits of Nidhi Company Registration?

There is a large number of benefits of a registered Nidhi Company and some of them are given below:

  1. In a registered Nidhi company you never find any external involvement in Management.
  2. A registered Nidhi Company is helpful for lower and Middle-class
  3. You can get the benefit of low-interest rates in case of a registered Nidhi Company.
  4. If you wish to register a Nidhi company, then you are entitled to avail benefit of secured investments.
  5. One person can get the facility of Minimum documentation and formalities in a registered Nidhi

Requirements for Nidhi Company Registration

For registration of a Nidhi Company, you have to fulfill certain requirements. List of the requirements need for Nidhi company registration is given below:

  1. There should be a minimum number of 7 shareholders in a company
  2. There must be at least 3 directors.
  3. Minimum capital of 10 lakh is required
  4. Valid documents required for Nidhi company registration.

The Process of Nidhi Company Registration

To register a Nidhi company certain steps and procedures are required to be fulfilled. Necessary steps for Nidhi company registration given below:

  1. Obtaining Digital Signature Certificate for all the members and directors -Digital Signature is a physical signature in an electronic format. Digital Signatures are used In India for online transactions such as filing an annual return, income tax E-fling, E-tenders etc. To register a Nidhi Company all the partners and directors require to obtain Digital Signature Certificate.
  2. Obtaining a Director Identification Number (DIN) For all the directors - DIN is a unique number allotted by the Central Government to any person intending to be a director or an existing director of the company. Through DIN, details of the directors are maintained in a database. For Nidhi Company registration all directors are required to obtain DIN.
  3. Application for approval of name - Person and company who needs to register for a Nidhi Company has to submit three option for the name of Nidhi Company to the Ministry of Corporate Affairs and out of three, one will be selected. The names provided should be completely unique.
  4. Submission of Memorandum of Understanding and Articles of Association - After the name approval, one has to submit Memorandum of Understanding and Articles of Association. Both Memorandum of Understanding and Articles of Association need to be filed with the Ministry of Corporate Affairs.
  5. Incorporation Certificate - Once registration application is filed, then Person and company will receive an Application reference The Incorporation certificate is received within 15-20 days. It is proof that the company has been incorporated.
  6. Apply for PAN, TAN, Bank Account - The last step is to apply for PAN and Tax deduction and Collection account number (TAN). PAN and TAN are issued within 7-10 working days. After receiving of PAN and TAN, one can submit the incorporation certificate, Memorandum of Understanding, Articles of Association and PAN with the bank to open a bank

Documents required for Nidhi Company Registration

List of the documents required for Nidhi Company registration is given below:

  1. Copy of Director's PAN card.
  2. Passport size photograph of directors
  3. Copy of aadhar card/Identity of directors
  4. Copy of rent agreement (If the property is rented one)
  5. Electricity/Water bill
  6. Copy of property Papers
  7. No objection certificate of the landlord, if any.

Conclusion

In India, Nidhi companies are created for cultivating the habit of thrift and savings amongst its members. Nidhi companies are allowed to borrow the amount from its members and lend it to them.

Enterslice is an award-winning company in a matter of providing services of Nidhi company registration. If you wish to register your company as Nidhi company or if you have any doubt regarding the registration process, then contact Enterslice or any of its consultant to get best and affordable service.