Nidhi Company belongs to the non-banking Indian finance sector and is distinguished under the Companies Act,2013. Its core business structure is borrowing and lending money among its members. 

What is a Nidhi Company?

' Nidhi' stands for National Initiative for Developing and Harnessing Innovations. Where "Nidhi” means finance or fund. Nidhi Company is incorporated to extend savings and also source finances among members only. It's allowed to take/lend loans from/to members.

They're regulated by the Ministry of Corporate Affairs, Section “406” of Companies Act 2013 and corporations Nidhi Companies Rules, 2014 govern Nidhi companies.

Documents Required for Nidhi Company Registration

• Address Proof
  1. Bank Statement
  2. Driving License
  3. Residence Card
  4. Any other Government-issued identity proof having the address
     • Passport-sized photographs
     • Digital Signature (DSC)
     • Director Identification Number (DIN) of directors
     • Memorandum of Association of the company (MoA)
     • Articles of Association of the company (AoA)
     • PAN card: This is necessary for the filing of the financial transactions made by the company. PAN card is also necessary for the taxation process of the company

Documents Required for Registered Office

1. Mobile Bill
2. Telephone Bill
3. Electricity Bill
4. Bank Statement
5. Proof of office address – Rental Agreement
6. NOC from the owner of the property
7. Photocopy of Property or Sale Deed printed in English (if the property is owned

Nidhi Company (PLC): Process of Registration

Step 1: Apply for DSC: To obtain Digital Signature Certificate following documents are required.

Step 2: Apply for DIN: After acquiring the Digital Signature Certificate (DSC), the next step is to apply for the Director Identification Number (DIN) of the proposed Director in SPICe Form along with the name and the address proof of the director.

Step 3: Name Approval Application: The next step and a very important step while incorporating a Nidhi Company is to decide on the name of the Company.

Step 4: Documents Required: MOA & AOA requires to be submitted at the ROC

Step 5: Filing Forms with MCA: All these documents will be attached with SPICe Form, SPICe-MOA and SPICe-AOA along with the DSC of the Director, and will be uploaded to the MCA site for approval.

Step 6: Issue of certificate of Incorporation: On further verification, the Registrar of Companies (ROC) will issue a Certificate of Incorporation and we can commence our business.

How can we help you?

As it could be easily formulated because of the less documentation and Limited Liability. If you too are wondering to set up a Nidhi Company, then the Online Legal India™ expert team can take care through the documentation process. We have a highly qualified CA/CS and 10+ years of experienced lawyers who would assist you with the Nidhi Company registration process We have budgeted services for those who are willing to venture into a company, business or any other kind of organization. 

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