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WHAT ARE THE REQUIREMENT FOR REGISTRATION OF NIDHI COMPANY IN AHMEDABAD?

Nidhi Company Registration online in Ahmedabad, ensure a minimum of 200 members within a year, a minimum paid-up capital of Rs. 5 lakhs, and a primary focus on cultivating thrift habits. Reserve a unique name with “Nidhi Limited,” appoint at least three directors with DIN, obtain DSC for directors, and submit necessary documents to the RoC via the MCA portal. Comply with Nidhi Rules and consult professionals for guidance. Visitofficialwebsite

Eligibility Criteria in nidhi company

Before initiating the registration process, it’s essential to ensure that your company meets the eligibility criteria set out in the Companies Act, 2013 for Nidhi Companies:

  • Minimum Members: A Nidhi Company must have at least 200 members within a year of its incorporation.

  • Minimum Capital Requirement: It should have a minimum paid-up equity share capital of Rs. 5 lakhs.

  • No Preference Shares: A Nidhi Company cannot issue preference shares.

  • Object Clause: The primary objective of a Nidhi Company should be cultivating the habit of thrift and savings among its members, receiving deposits from them, and lending to them for their mutual benefit. Nidhi Company Registration online in Ahmedabad

Directors and Management:

  • Directors: A Nidhi Company must have at least three directors, with a minimum of two-thirds of them being individuals. Each director should have a Director Identification Number (DIN).

  • Board Meetings: The company must hold a minimum of four board meetings in a year, with an interval of not more than 120 days between two consecutive meetings.

  • Appointment of CEO: A Nidhi Company should appoint a Chief Executive Officer (CEO) who should be a director. Nidhi Company Registration online in Ahmedabad

Registration Application:

Submit the application for the registration of your Nidhi Company with the Registrar of Companies (RoC). The application should include the following documents and information:

  • MoA and AoA
  • Names, addresses, and PAN cards of the directors
  • Address of the registered office
  • Declaration by the directors stating that the company will comply with all Nidhi Company rules
  • Statement of accounts and financial projections
  • Nidhi Company Registration online in Ahmedabad

What is a nidhi company’s registration and its process

Nidhi Company Registration online in Ahmedabad refers to the process of incorporating and establishing a Nidhi Company, a non-banking financial institution (NBFC) in India. Nidhi Companies are formed to promote the habit of thrift, savings, and financial cooperation among their members.

The process of Nidhi Company registration involves the following steps:

  1. Obtain a Digital Signature Certificate (DSC): The first step is to obtain a DSC for the proposed directors of the company. The DSC is required for the online filing of registration documents.
 

2. Apply for Director Identification Number (DIN): Each director of the Nidhi Company must apply for a DIN from the Ministry of Corporate Affairs (MCA) by submitting the required documents and forms.

3. Name Reservation: Once the DIN is obtained, the next step is to apply for name reservation through the RUN (Reserve Unique Name) facility on the MCA portal. The proposed name should comply with the naming guidelines and not be similar to any existing company or trademark.

4. Drafting of Memorandum of Association (MOA) and Articles of Association (AOA): The MOA and AOA are the constitutional documents of the Nidhi Company. These documents define the objectives, rules, and regulations, as well as the members’ and directors’ rights and responsibilities. The MOA and AOA need to be prepared per the Companies Act 2013.

5. Submission of Forms and Documents: Once the name is approved, the necessary forms and documents, including the MOA, AOA, and other required declarations, need to be filed with the Registrar of Companies (RoC). These documents should be submitted within 60 days from the date of name approval.

6. Payment of Fees: The prescribed registration fees, based on the company’s authorized share capital, should be paid to the RoC. The fee structure can be obtained from the MCA website.

7. Certificate of Incorporation: After verifying the submitted documents, if everything is in order, the RoC will issue a Certificate of Incorporation, officially recognizing the Nidhi Company as a registered entity.

8. Post-Incorporation Compliance: Once the Nidhi Company is registered, certain post-incorporation compliance requirements need to be fulfilled, such as obtaining a Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN), opening a bank account, and complying with other applicable laws and regulations. Nidhi Company Registration online in Ahmedabad

What is the minimum requirement to the registration of a Nidhi company

A Nidhi Company is a type of Non-Banking Financial Company (NBFC) in India that primarily deals with accepting deposits and lending money to its members. To register a Nidhi Company, you must meet the following minimum requirements:

  1. Incorporation: Register the company as a public limited company under the Companies Act, 2013 with the Ministry of Corporate Affairs (MCA).
 

2. Unique name: Choose a unique name for the company that includes the word “Nidhi Limited” as part of its name.

3. Minimum capital: The company must have a minimum paid-up equity share capital of INR 5 lakhs (approximately $6,700).

4. Minimum members: A Nidhi Company must have at least seven members (shareholders) and three directors at the time of incorporation.

5. Resident directors: All directors must be Indian residents.

6. DIN (Director Identification Number): Each director must have a valid DIN.

7. DSC (Digital Signature Certificate): Obtain a DSC for each director, which is required for signing electronic documents.

8. MOA (Memorandum of Association) and AOA (Articles of Association): Draft the MOA, which outlines the company’s objectives, and the AOA, which contains the rules and regulations governing the company’s operations. Nidhi Company Registration online in Ahmedabad

Does Nidhi Company require RBI approval

It is simple to create a Nidhi corporation because it is not required to obtain the RBI’s approval. It must have “Nidhi Limited” appended to the end of its name because it was incorporated as a public corporation Nidhi Company Registration online in Ahmedabad

Registered Office:

Ensure that your company has a registered office, and its address should be within the jurisdiction of the Registrar of Companies in Ahmedabad. A verification of the registered office address is conducted by the RoC. Nidhi Company Registration online in Ahmedabad

What is the effect of the registration when a company is registered as a Nidhi company

Nidhi Company is a form of doing financial business in India. As it is regulated under the Companies Act & ROC is the governing Authority.

RBI approval is not required for Nidhi Company to do the financial business. RBI has issued master direction (Master Direction DNBR.PD.001/03.10.119/2016-17) and exempted Nidhi companies from the provisions of RBI Act, 1934. Nidhi Company Registration online in Ahmedabad

Nidhi company is like a small bank with some restrictions, Nidhi company cant open current account & can accept upto 1 lakh in saving account & also loan to members upto specified limit. 

Its working is on the concept of Mutual Benefits, it can deal with members of Nidhi only.

Things to know before registering Nidhi Company:

  1. Nidhi company is a Public Limited Company as per Companies Act.
  2. Minimum Shareholders for registration should be Seven. But it will have to increase to 200 or more within One year of incorporation.
  3. Minimum Director required for Nidhi is Three.
  4. Minimum Authorised & paidup share capital at the time of incorporation will be Rs. 5 Lakh, which will have to increase to Rs. 10 Lakh or more within one year of incorporation.
  5. Nidhi company will have word Nidhi in its Name. Earlier its was also accepting Mutual Benefit word.
 

Process of Nidhi Company Registration in brief:

  1. To apply for Name approval in SPICE+ Part A.
  2. Apply for Digital Signature for all subscribers.
  3. As name approved then file for its registration in SPICE+ Part B. Both SPICE+ A & SPICE+B both can be filed simultaneously.
  4. As Company registered then open bank account & deposit subscription money to bank.
  5. File Form INC 20A for Commencement of Business. (Within 6 months of incorporation).
  6. File NDH 4 within 60 days of expiring one year of its incorporation to get the status of Nidhi Company. Nidhi Company Registration online in Ahmedabad

What is the difference between a Nidhi Company and a co-operative society

A Nidhi Company is a type of non-banking financial company (NBFC) that is regulated by the Ministry of Corporate Affairs (MCA) in India. Nidhi Companies are primarily engaged in the business of borrowing and lending money to their members. They can also provide other financial services, such as deposit accounts, remittances, and insurance. Nidhi Company Registration online in Ahmedabad

A co-operative society is a mutual aid organization that is owned and controlled by its members for their mutual benefit. Co-operative societies can be formed for a variety of purposes, including providing financial services, agricultural services, and consumer goods. Co-operative societies are governed by state cooperative societies acts and are regulated by the Registrar of Co-operative Societies. Nidhi Company Registration online in Ahmedabad

Here are some additional things to consider when choosing between a Nidhi Company and a cooperative society:

Ownership structure: Nidhi Companies are owned by their shareholders, while co-operative societies are owned by their members.

Profit distribution: Nidhi Companies distribute their profits to their shareholders in the form of dividends, while cooperative societies use their profits to benefit their members and the community.

Regulation: Nidhi Companies are regulated by the MCA, while co-operative societies are regulated by the Registrar of Co-operative Societies.

It is important to note that both Nidhi Companies and cooperative societies are subject to various regulations and restrictions. It is important to do your research and understand the regulations before investing in either type of organization. Nidhi Company Registration online in Ahmedabad

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Nidhi Company Rules Compliance:

Nidhi Companies must comply with various regulations under the Nidhi Rules, 2014. These rules include:

  • Deposits: Nidhi Companies can accept deposits only from their members.
  • Lending: They can lend only to their members.
  • Interest Rates: The interest rate charged on loans should not exceed 7.5% above the highest rate offered on deposits.
  • Reserve Fund: They are required to transfer at least 20% of their profits to a reserve fund until it reaches 10% of their outstanding deposits.
  • Fixed Deposits: Nidhi Companies are not allowed to offer fixed deposit schemes.
  • Membership: Membership of Nidhi Companies is limited to individuals and entities specified in the Nidhi Rules.

Audit and Compliances:

Conduct an annual audit of the company’s accounts and file the necessary financial statements with the RoC.

Please note that Nidhi Companies are subject to regulatory changes, and it’s essential to stay updated with the latest regulations and guidelines issued by the Ministry of Corporate Affairs (MCA), the Reserve Bank of India (RBI), and other relevant authorities. Consulting with a legal or financial advisor with expertise in Nidhi Company registrations is advisable to ensure proper compliance with all requirements. This comprehensive guide provides a general overview of the requirements for registering a Nidhi Company in Ahmedabad, but specific details may vary based on the company’s unique circumstances and the evolving regulatory landscape. Nidhi Company Registration online in Ahmedabad

how auriga accounting help you to register nidhi company

To register a Nidhi Company in Ahmedabad, you need to provide various documents and information as part of the registration process. These documents and details are necessary to ensure compliance with the Companies Act, 2013, and the Nidhi Rules, 2014. Here is a list of the essential documents and information required for registering a Nidhi Company in Ahmedabad:

  1. Digital Signature Certificates (DSCs):

    • DSCs for all proposed directors and the Chief Executive Officer (CEO). DSCs are required for filing online applications with the Registrar of Companies (RoC).
  2. Director Identification Number (DIN):

    • DIN for all the directors. DIN is obtained by filing Form DIR-3 on the Ministry of Corporate Affairs (MCA) portal.
  3. Memorandum of Association (MoA) and Articles of Association (AoA):

    • Drafted MoA and AoA for the Nidhi Company. These documents outline the company’s objectives, rules, and regulations. Ensure they comply with the Nidhi Rules and Companies Act, 2013.
  4. Proof of Registered Office Address:

    • Provide proof of the registered office address, such as a rent agreement, lease deed, or a utility bill. The registered office should be situated within the jurisdiction of the Registrar of Companies (RoC) in Ahmedabad.
  5. Board Resolution:

    • A certified copy of the board resolution declaring the intention to form a Nidhi Company and authorizing directors to file the incorporation documents.
  6. Declaration by Directors:

    • A declaration from all directors stating their intention to comply with the Nidhi Rules and Regulations, along with other legal requirements.
  7. PAN and Aadhar Card of Directors:

    • Copies of PAN and Aadhar cards of all the directors.
  8. Passport-sized Photographs:

    • Recent passport-sized photographs of all directors and the CEO.
  9. Registered Office Verification:

    • Verification of the registered office address is required. This may involve an inspection by the RoC.
  10. Subscription Money Proof:

    • Proof of the initial capital contribution by the promoters in the company’s bank account. The minimum paid-up share capital should be Rs. 5 lakhs, as mentioned in the MoA. Nidhi Company Registration online in Ahmedabad
June 22, 2024

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