This content describes the meaning of the NIDHI Company along with its benefits. In addition to this, it also contains the procedure for registering a NIDHI company.
A company incorporated with the purpose of cultivating the habit and thrift of savings amongst its members is called the Nidhi Company. Further, the basic function of the Nidhi Company is to accept and lend deposits to its members only, for their mutual benefits.
Basic Requirements for Incorporating NIDHI Company
- The Nidhi Company incorporated must be a Public Company.
- It shall have the words NIDHI limited as part of its name.
- It shall not issue preference shares.
- It shall have a minimum paid up share capital of Rs 10,00,000.
- In case the preference share capital has already been issued before the commencement of the company than such shares shall be redeemed in terms of the issuance of such funds.
- The company shall borrow and lend deposits from its members only.
- It shall have minimum 200 members and minimum 3 directors.
Documents required for incorporating Nidhi Company -
- Copy of PAN card.
- Adhar card
- Address Proof (Bank statement, Mobile bill, telephone bill)
- Passport size photo
- Registered Address proof(Electricity bill etc)
- Utility Bill (GAS bill, Electricity bill)
- In case of rented property NOC by the owner.
Registration Process of Nidhi Company in India -
The following steps are included in the procedure of registering a NIDHI company
Step-1- Apply for DIN and DSC
To initialize the process of registration minimum three proposed directors are required to apply for the DSC and DIN number for Nidhi Company.
Step-2- Name approval
As soon as the DSC and DIN Number gets successfully generated, then the applicant can file an application to MCA for reservation of name of Nidhi Company in FORM INC-1.
Step-3- Drafting memorandum of association and Article of association
Further, the memorandum of association and article of association shall be drafted according to the objectives of the NIDHI Company.
Step-5- File Application for registration
After obtaining approval of name, an application of registration along with registration documents shall be filed with MCA.
Step-6- Certifcate of Incorporation
As soon as the ROC will be satisfied with the application filed and the documents submitted, a valid certificate of incorporation will be generated and e-mailed to the directors.
