Nidhi Company registration

Nidhi Company registration in Angamaly | Aluva| Ernakulam

Nidhi Companies

Nidhi company is a company which carries on the business of  receiving and lending deposits from/to its members for their mutual benefit.  Nidhi is Co-operative form of corporate entity which promotes habit of thrift and savings amongst its members.

Law applicable to nidhi companies

·         Companie Act, 2013

·         Nidhis Rules, 2014

Benefits of Nidhi companies

·         Nidhi company can provide loan at minimum interest and minimum documentation.

·         The deposits of Nidhi company is very save because it is compulsorily abide by the Nidhi Rules.

Restrictions on Nidhi Company

  • They are not allowed to start the business of chit funds, Insurance, Hire Purchase Finance, Leasing Finance and acquisition of shares issued by companies.
  • Nidhi Company cannot issue securities such as preference shares, debentures etc.
  • They are prohibited from opening any current account with its members.
  • It cannot enter into partnership for doing lending and borrowing business.
  • It is not allowed to acquire any other company.

Post incorporation requirements:

1. It must not have less than two hundred members (Shareholders)
2. Must have Net Owned Funds (NOF) of ten lakh rupees or more
3. Must have unencumbered term deposits of not less than ten per cent of the outstanding deposits

4. Must have a ratio of Net Owned Funds to deposits of not more than 1:20

Registration of nidhi company.

·         It must have a minimum paid up equity share capital of Rs.5,00,000/-;

·         It should have at least 3 directors and 7 members.

·         The name must have Nidhi Limited

 Documents required for registration of Nidhi companies

  1. Digital Signature Certificate of all the Directors.
  2. Copy of a PAN Card.
  3. Copy of Identity Proof (i.e. Voters ID Card, Driving License, Aadhar Card).
  4. 2 Passport size photograph.
  5. Registered Office Address Proof (Electricity Bill, Telephone Bill).
  6. If the registered address is a rented premise then rent agreement with rent receipt.