A Nidhi Company is recognized under the section 406 of The Companies Act, 2013 under the Indian non-banking finance sector. The core business activity of a nidhi company is borrowing and lending money between its members. They are also known as Benefit Funds, Mutual Benefit Funds, Permanent Fund and Mutual Benefit Company.
Nidhi companies are very popular in southern states in India. unlike an NBFC a Nidhi Company is not required to obtain a license from RBI, hence it is easy to incorporate.
To start with, first incorporate a public limited company that should have “Nidhi Limited” at the end. Later within one year of its incorporation, when the number of shareholders has reached 200, then a separate application is filed before the ROC for grant of Nidhi Company Status. The Company cannot advertise asking for deposits from the public at large and shall keep its borrowing and advance activities to and from among its members.
Process of Nidhi Company Registration:
To start a Nidhi Company, we have to first incorporate a Public Limited Company by having a minimum of three Directors and seven shareholders. During incorporation process, proper care is required to be taken while drafting the Memorandum of Association (MoA).
After incorporating a Public Limited Company, the Nidhi Company must meet all of the following criterias within a period of one-year:
7 Digital Signatures
3 Director Identification Numbers
Name Approval of the Company
Certificate of Incorporation (COI)
MoA & AoA
PAN & TAN Registration
Hard Copy of Share Certificates
Assistance in Current Account Opening
Everything From the Smart Plan +
Share Allotment for up to 200 shareholders
Everything From the Relax Plan +
GST Return Filing For First 3 Months
TDS Return Filing For 1 Quarter
One Application For Trademark Registration
MYDBIZ is the market leader in Nidhi Company Registration services in India. Before we get started with the engagement, all the required information and documents are collected. An engagement manager would be assigned who will also advice you on the type of registrations to be obtained. The average time required to complete a Nidhi Company Registration is 12-15 working days depending on the government processing time and client document submission. Once the necessary registrations are obtained, an application is also submitted to the bank for current account opening.
For more information, feel free to contact us at firstname.lastname@example.org or call us at +91 9632 993 993.