{"id":3818,"date":"2021-08-26T10:59:49","date_gmt":"2021-08-26T10:59:49","guid":{"rendered":"https:\/\/www.caindelhiindia.com\/blog\/?p=3818"},"modified":"2021-08-26T11:46:44","modified_gmt":"2021-08-26T11:46:44","slug":"all-about-on-nidhi-company","status":"publish","type":"post","link":"https:\/\/www.caindelhiindia.com\/blog\/all-about-on-nidhi-company\/","title":{"rendered":"All About on Nidhi Company"},"content":{"rendered":"<figure id=\"attachment_3819\" aria-describedby=\"caption-attachment-3819\" style=\"width: 980px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/08\/All-About-on-Nidhi-Company.1.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-3819\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/08\/All-About-on-Nidhi-Company.1.jpg\" alt=\"All About on Nidhi Company\" width=\"980\" height=\"487\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/08\/All-About-on-Nidhi-Company.1.jpg 644w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/08\/All-About-on-Nidhi-Company.1-300x149.jpg 300w\" sizes=\"(max-width: 980px) 100vw, 980px\" \/><\/a><figcaption id=\"caption-attachment-3819\" class=\"wp-caption-text\"><span style=\"color: #ffffff;\">All About on Nidhi Company<\/span><\/figcaption><\/figure>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69dd0216c52b8\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69dd0216c52b8\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.caindelhiindia.com\/blog\/all-about-on-nidhi-company\/#All_About_on_Nidhi_Company\" title=\"All About on Nidhi Company\">All About on Nidhi Company<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.caindelhiindia.com\/blog\/all-about-on-nidhi-company\/#ADVANTAGES_OF_REGISTRATION_OF_NIDHI_COMPANY\" title=\"ADVANTAGES OF REGISTRATION OF NIDHI COMPANY\">ADVANTAGES OF REGISTRATION OF NIDHI COMPANY<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.caindelhiindia.com\/blog\/all-about-on-nidhi-company\/#PREREQUISITES_OF_NIDHI_COMPANY\" title=\"PREREQUISITES OF NIDHI COMPANY\">PREREQUISITES OF NIDHI COMPANY<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.caindelhiindia.com\/blog\/all-about-on-nidhi-company\/#DOCUMENTATION_REQUIRMENTS_OF_NIDHI_COMPANY\" title=\"DOCUMENTATION REQUIRMENTS OF NIDHI COMPANY\">DOCUMENTATION REQUIRMENTS OF NIDHI COMPANY<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.caindelhiindia.com\/blog\/all-about-on-nidhi-company\/#REGISTRATION_PROCESS_OF_NIDHI_COMPANY\" title=\"REGISTRATION PROCESS OF NIDHI COMPANY\">REGISTRATION PROCESS OF NIDHI COMPANY<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.caindelhiindia.com\/blog\/all-about-on-nidhi-company\/#STEP-BY-STEP_PROCESS_OF_NIDHI_COMPANY\" title=\"STEP-BY-STEP PROCESS OF NIDHI COMPANY\">STEP-BY-STEP PROCESS OF NIDHI COMPANY<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.caindelhiindia.com\/blog\/all-about-on-nidhi-company\/#RESTRICTIONS_ON_NIDHI_COMPANIES\" title=\"RESTRICTIONS ON NIDHI COMPANIES\">RESTRICTIONS ON NIDHI COMPANIES<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.caindelhiindia.com\/blog\/all-about-on-nidhi-company\/#RESTRCITION_ON_MEMBERSHIP_OF_NIDHI_COMPANY\" title=\"RESTRCITION ON MEMBERSHIP OF NIDHI COMPANY\">RESTRCITION ON MEMBERSHIP OF NIDHI COMPANY<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.caindelhiindia.com\/blog\/all-about-on-nidhi-company\/#POST_REGISTRATION_REQUIREMENTS_OF_NIDHI_COMPANY\" title=\"POST REGISTRATION REQUIREMENTS OF NIDHI COMPANY\">POST REGISTRATION REQUIREMENTS OF NIDHI COMPANY<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"All_About_on_Nidhi_Company\"><\/span><span style=\"color: #000080;\">All About on Nidhi Company<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"color: #000080;\"><strong>BRIEF INTRODUCTION<\/strong><\/span><\/p>\n<p>It is a company incorporated in order to cultivate a habit of saving between its members or shareholders. In the\u00a0Indian financial sector, Nidhi Company is seen as a mutual benefit society and they are allowed to solely take up deposits from their members and lend money to their members only.<\/p>\n<p>RBI regulates the matters of a Nidhi Company\u00a0with regard\u00a0to its deposit acceptance activities. Even though it is an NBFC, the same has been exempted from various core provisions of the RBI Act, 2013, since the main motive of such companies is to work for the welfare of its members. So, let\u2019s perceive\u00a0the full\u00a0concept of Nidhi Company Registration Process.<\/p>\n<p>If\u00a0you&#8217;re\u00a0looking\u00a0to incorporate\u00a0your own Nidhi Company,\u00a0you have to\u00a0contact RJA. We&#8217;ve\u00a0a team\u00a0of pros\u00a0who are competent enough to help you with the elite services. Our team\u2019s members not only help, but also educate and guide you in respect of every matter related to Nidhi company registration.<\/p>\n<p><span style=\"color: #000080;\"><strong>ESSENTIAL\u00a0CHARACTERISTICS OF REGISTRATION OF NIDHI COMPANY<\/strong><\/span><\/p>\n<p>Whenever you\u00a0founded\u00a0a Nidhi company,\u00a0you need to\u00a0know that Nidhi company registration comes with its own features. Let\u2019s take\u00a0a glance\u00a0at\u00a0the subsequent\u00a0features of the Nidhi company registration-<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Nidhi Company registration is provided under the Section 406 of\u00a0the Companies\u00a0Act, 2013 and the same is regulated by Nidhi Rules, 2014.<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Nidhi company registrations take place similar to that of public\u00a0limited company.<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 During the operation of the Nidhi companies,\u00a0banking concern\u00a0of India can give directions\u00a0to those\u00a0Nidhi companies. Even so,\u00a0there&#8217;s\u00a0no requirement of the approval from the RBI for the registration of Nidhi companies.<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The primary objective of Nidhi Company is to borrow and lend money to its shareholders and members only.<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 It must be kept in mind, that if\u00a0you&#8217;ve got\u00a0incorporated a Nidhi company, then\u00a0the corporate\u00a0must have\u00a0a minimum of\u00a0200 members within a year of incorporation.<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 After the registration of the Nidhi Company, \u201cNidhi limited\u201d\u00a0should\u00a0be suffixed to\u00a0the corporate\u00a0name<\/p>\n<h3><span class=\"ez-toc-section\" id=\"ADVANTAGES_OF_REGISTRATION_OF_NIDHI_COMPANY\"><\/span><span style=\"color: #000080;\">ADVANTAGES OF REGISTRATION OF NIDHI COMPANY<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Whenever\u00a0you&#8217;re\u00a0thinking of\u00a0setting up\u00a0a Nidhi company,\u00a0there&#8217;s\u00a0a list\u00a0of advantages\u00a0that you simply\u00a0avail\u00a0the benefits\u00a0of, upon\u00a0looking\u00a0the registration-<\/p>\n<p><span style=\"color: #000080;\"><strong>1.\u00a0\u00a0\u00a0\u00a0\u00a0 Individual Legal Identity<\/strong><\/span><\/p>\n<p>As per the Companies Act, 2013, Nidhi company registration offers certain benefits, and one of the main one is separate legal identity. Thus, it makes the Nidhi Company independent of its promoters and directors and hence can own property and incur debts in its own name.<\/p>\n<p><span style=\"color: #000080;\"><strong>2.\u00a0\u00a0\u00a0\u00a0\u00a0 Constant existence of the Nidhi Company<\/strong><\/span><\/p>\n<p>We all know that Nidhi companies have separate legal identity, and thus, their functioning\u00a0is not hampered due to unannounced withdrawal or unfortunate death of its shareholders. Thus, they are going concern and can be dissolved only by the order of law.<\/p>\n<p><span style=\"color: #000080;\"><strong>3.\u00a0\u00a0\u00a0\u00a0\u00a0 Swift management<\/strong><\/span><\/p>\n<p>As compared to other\u00a0types of\u00a0business entities in India, incorporating a Nidhi company is much easier. If\u00a0you would like\u00a0to introduce any change inside the management of the Nidhi Company\u2019s management\u00a0you simply\u00a0have to\u00a0fill and submit\u00a0some\u00a0forms with the MCA.<\/p>\n<p><span style=\"color: #000080;\"><strong>4.\u00a0\u00a0\u00a0\u00a0\u00a0 Trustworthiness\u00a0within the\u00a0market<\/strong><\/span><\/p>\n<p>In terms of credibility\u00a0within the\u00a0market, Nidhi companies are considered to be most trusted one. MCA ensures and monitors the registration of the Nidhi Company.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"PREREQUISITES_OF_NIDHI_COMPANY\"><\/span><span style=\"color: #000080;\"><strong>PREREQUISITES OF NIDHI COMPANY<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>To set up a Nidhi company one\u00a0needs to\u00a0accommodates\u00a0with the requirements\u00a0mentioned below:<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Nidhi company is required to be incorporated as a \u201cpublic company\u201d first, and then would be required to apply for incorporating as a Nidhi Company.<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 In order to run a Nidhi Company, a minimum paid-up equity share capital of INR 5 Lakhs is required.<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Minimum number of proposed members at the time of incorporation shall be 7 or more.<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Minimum number of proposed directors at the time of incorporation shall be 3 or more.<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 At the time of incorporation,\u00a0an organization\u00a0shall not issue any\u00a0preference shares.\u00a0However, in case of\u00a0a corporation\u00a0has issued\u00a0preference shares\u00a0before the incorporation process. Such shares are required to be redeemed as per the terms of issue.<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Primary objective of the Nidhi company\u00a0must be to foster a habit of thrift and savings among its members. Secondly,\u00a0the corporate\u00a0must receive and lend deposits to its members for mutual benefits.<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Each and every Nidhi company is required to have the last words as \u2018Nidhi Limited [1]\u2019, after the name of the company<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Company is required to have a minimum 7 members and 3 directors at the time of its incorporation.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"DOCUMENTATION_REQUIRMENTS_OF_NIDHI_COMPANY\"><\/span><span style=\"color: #000080;\"><strong>DOCUMENTATION REQUIRMENTS OF NIDHI COMPANY<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<figure id=\"attachment_3822\" aria-describedby=\"caption-attachment-3822\" style=\"width: 967px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/08\/DOCUMENTATION-REQUIRMENTS-OF-NIDHI-COMPANY..jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-3822\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/08\/DOCUMENTATION-REQUIRMENTS-OF-NIDHI-COMPANY..jpg\" alt=\"DOCUMENTATION REQUIRMENTS OF NIDHI COMPANY.\" width=\"967\" height=\"467\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/08\/DOCUMENTATION-REQUIRMENTS-OF-NIDHI-COMPANY..jpg 623w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/08\/DOCUMENTATION-REQUIRMENTS-OF-NIDHI-COMPANY.-300x145.jpg 300w\" sizes=\"(max-width: 967px) 100vw, 967px\" \/><\/a><figcaption id=\"caption-attachment-3822\" class=\"wp-caption-text\"><span style=\"color: #ffffff;\">DOCUMENTATION REQUIRMENTS OF NIDHI COMPANY.<\/span><\/figcaption><\/figure>\n<p>The Nidhi Company Registration is\u00a0an online\u00a0process\u00a0that\u00a0the applicant should have self-certified documents:<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 ID proof of shareholders and directors would be required and for the same, the applicant can produce the copy\u00a0of PAN card, in case of Indian Nationals or attested copy of Passport, in case of foreign nationals.<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Residential proof of shareholders and directors:\u00a0duplicate copy\u00a0of Aadhar card,\u00a0bank statement,\u00a0driving licence, electricity bill, or Passport. Amongst which,\u00a0a minimum of\u00a0two documents must be valid\u00a0and up to date\u00a0for about two months old.<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Proof of registered office:\u00a0you would like\u00a0to supply\u00a0a copy\u00a0of Rental Agreement or Sales Deed,\u00a0property tax\u00a0receipt, electricity bill, or a No Objection Certificate (NOC) from\u00a0the owner\u00a0to utilize the premises as a registered office.<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Signed Incorporation Documents:\u00a0a\u00a0copy of Signed Digital Signature Application documents and a soft copy of other incorporation signed documents.<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Passport Size Photographs: Also, submit 2\u00a0to three\u00a0passport size photographs of directors and shareholders.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"REGISTRATION_PROCESS_OF_NIDHI_COMPANY\"><\/span><span style=\"color: #000080;\"><strong>REGISTRATION PROCESS OF NIDHI COMPANY<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><a href=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/08\/All-About-on-Nidhi-Company.123.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-3821\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/08\/All-About-on-Nidhi-Company.123.jpg\" alt=\"All About on Nidhi Company.\" width=\"956\" height=\"476\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/08\/All-About-on-Nidhi-Company.123.jpg 639w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/08\/All-About-on-Nidhi-Company.123-300x149.jpg 300w\" sizes=\"(max-width: 956px) 100vw, 956px\" \/><\/a><\/p>\n<p>It is essential for very company to register under the Companies\u00a0Act, 2013 before establishing as a Nidhi Company in India. The applicant\u00a0needs to\u00a0make sure the\u00a0presence of a minimum\u00a0of seven\u00a0members\u00a0and three\u00a0directors\u00a0to begin\u00a0with the registration process. It usually takes around 45 days in order to complete the whole process of registration. Follow these easy steps for registration:<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The first and foremost thing that an applicant\u00a0must\u00a0do is\u00a0to use\u00a0for (DIN) Director\u00a0number\u00a0and (DSC) Digital Signature Certificate. It takes approximately 2 days for the issuance of DSC.<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Furthermore, the directors\u00a0and shareholders are required to draft the MOA and AOA of the said entity.<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Since\u00a0the whole\u00a0registration process of the Nidhi Company is online,\u00a0you have got\u00a0to submit all the documents online. Also, all the documents are required to be verified in order to check their authenticity.<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Once the DIN and DSC is obtained, the applicant is required to file an application in the Form INC-1 with the Ministry of Corporate Affairs, in order to reserve the name of proposed Nidhi Company.<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Ensure that the name of your company\u00a0is exclusive\u00a0and doesn\u2019t resemble other companies. Also, it\u00a0mustn&#8217;t\u00a0be undesirable in consideration of the Central Government.<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 It is mandatory\u00a0to feature\u00a0\u2018Nidhi Limited \u2018to the name of a Nidhi Company.<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Once you get an approval for the company\u2019s name by MOCA, it\u2019s time\u00a0to arrange\u00a0for Memorandum of Association (MOA) and Articles of Association (AOA).<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Keep in mind\u00a0the target\u00a0of your company while preparing MOA and AOA.<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 After this, file the application for incorporation of Nidhi Company.<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 After the Incorporation Certificate has issued to you; it\u2019s suitable for you\u00a0to use\u00a0for the PAN and TAN of\u00a0the corporate.<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Lastly, open a current\u00a0bank account.<\/p>\n<p>Note: A Nidhi applicant must get GST registration. All the business entities in India who exceed\u00a0the brink\u00a0limit of turnover or profits\u00a0should\u00a0oblige GST rules. If one fails\u00a0to try to\u00a0that for\u00a0evasion, then it gets considered as a criminal offence which is subject to prosecution, jail term, and penalties.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"STEP-BY-STEP_PROCESS_OF_NIDHI_COMPANY\"><\/span><span style=\"color: #000080;\">STEP-BY-STEP PROCESS OF NIDHI COMPANY<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>There is\u00a0a specific\u00a0list of steps that one\u00a0has to\u00a0follow\u00a0to get\u00a0their Nidhi Company registered-<\/p>\n<p><span style=\"color: #000080;\"><strong>Step1: Obtaining Digital Signature Certificate<\/strong><\/span><\/p>\n<p>All the proposed directors of\u00a0the corporate\u00a0must\u00a0have digital signatures (DSC), there are certain agencies who issues DSCs.<\/p>\n<p><span style=\"color: #000080;\"><strong>Step2: Reservation of Name of Nidhi Company<\/strong><\/span><\/p>\n<p>There is a RUN service available,\u00a0which may\u00a0be used for applying the name of the Nidhi Company.\u00a0you may\u00a0be allowed to propose two name options to the ministry of corporate affairs (MCA). The proposed names must not resemble any of the already registered names of\u00a0the corporate.<\/p>\n<p><span style=\"color: #000080;\"><strong>Step3: Filling the Spice Form<\/strong><\/span><\/p>\n<p>Once you receive the approval of the name,\u00a0the following\u00a0step is to fill the Spice form. Under this form, the applicant would be required to filed forms\u00a0like\u00a0e-Memorandum of Association (MOA) and e-Articles of Association (AOA).\u00a0During this\u00a0step,\u00a0you would be required\u00a0to produce\u00a0all\u00a0the information\u00a0regarding the shareholders of\u00a0the corporate.<\/p>\n<p><span style=\"color: #000080;\"><strong>Step4: Incorporation of\u00a0the corporate<\/strong><\/span><\/p>\n<p>It takes nearly a month for\u00a0the entire\u00a0process of Nidhi company registration after\u00a0you&#8217;ll\u00a0receive a certificate of registration\u00a0and therefore the\u00a0Company identity number. The certificate of registration serves\u00a0the aim\u00a0of proof of registration with the Ministry of Corporate Affairs (MCA).<\/p>\n<p>If\u00a0the directors\u00a0of\u00a0the corporate\u00a0don&#8217;t\u00a0have the Director\u00a0identification number,\u00a0they&#8217;ll\u00a0get the one at this stage\u00a0in addition.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"RESTRICTIONS_ON_NIDHI_COMPANIES\"><\/span><span style=\"color: #000080;\"><strong>RESTRICTIONS ON NIDHI COMPANIES<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>There are certain restrictions on Nidhi Companies under Nidhi Rules, 2014, along with the Rule \u20186\u2019 of Nidhi Rules, 2014, a Nidhi Company shall not:<\/p>\n<p>1.\u00a0\u00a0\u00a0\u00a0\u00a0 Carry on\u00a0the business of-<br \/>\n\u2022 Chit Fund,<br \/>\n\u2022 Hire Purchase finance,<br \/>\n\u2022 Leasing Finance,<br \/>\n\u2022Insurance Business and acquisition of other companies.<\/p>\n<p>2.\u00a0\u00a0\u00a0\u00a0\u00a0 Issue\u00a0preference shares, Debentures or\u00a0the other\u00a0debt instrument\u00a0by any name or in any form whatsoever.<\/p>\n<p>3.\u00a0\u00a0\u00a0\u00a0\u00a0 Open any\u00a0current account\u00a0with its members.<\/p>\n<p>4.\u00a0\u00a0\u00a0\u00a0\u00a0 Acquire another company by Purchase of securities or control the composition of Board of Directors of any company in any manner whatsoever or enter into any arrangement for the change of its management unless\u00a0it&#8217;s\u00a0approved by a Special Resolution in its general meeting and also obtain the prior approval of Regional Director.<\/p>\n<p>5.\u00a0\u00a0\u00a0\u00a0\u00a0 Continue\u00a0any business\u00a0aside from\u00a0borrowing\/lending in its own name.<\/p>\n<p>6.\u00a0\u00a0\u00a0\u00a0\u00a0 Accept deposits from or lend to\u00a0a person,\u00a0apart from\u00a0its members.<\/p>\n<p>7.\u00a0\u00a0\u00a0\u00a0\u00a0 Pledge any of the assets that\u00a0are\u00a0lodged by its members as security,<\/p>\n<p>8.\u00a0\u00a0\u00a0\u00a0\u00a0 Taking up of deposits and lend money to anybody corporate,<\/p>\n<p>9.\u00a0\u00a0\u00a0\u00a0\u00a0 Enter into sough of Partnership Arrangement in respect of its borrowing or lending activities,<\/p>\n<p>10.\u00a0 Issue or have issued any sought of advertisement, for soliciting their deposit,<\/p>\n<p>11.\u00a0 Pay any sought of brokerage or incentive for mobilization of their deposits from members or granting of loans.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"RESTRCITION_ON_MEMBERSHIP_OF_NIDHI_COMPANY\"><\/span><span style=\"color: #000080;\">RESTRCITION ON MEMBERSHIP OF NIDHI COMPANY<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Nidhi company is not allowed to admit any body corporate or trust as its member.<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Every Nidhi shall ensure that their members shall not fall below 200\u00a0members at any point of time.<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Also, a minor shall not be admitted as a member of Nidhi, provided the said deposits\u00a0has been accepted in the\u00a0name of a minor, and the same is made by the legal heir or the guardian of the said minor.<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Ensure that a minimum of seven members be there at the time of incorporation of the Nidhi Company, and out of the said members, at least three of them must be\u00a0the directors\u00a0of\u00a0the corporate.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"POST_REGISTRATION_REQUIREMENTS_OF_NIDHI_COMPANY\"><\/span><span style=\"color: #000080;\"><strong>POST REGISTRATION REQUIREMENTS OF NIDHI COMPANY<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Here are\u00a0the wants\u00a0that one\u00a0needs to\u00a0fulfil after registration of a Nidhi Company:<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Within a year of its incorporation, a Nidhi Company shall have\u00a0a minimum of\u00a0200 Members.\u00a0together with\u00a0that,\u00a0the corporate\u00a0must have\u00a0the net\u00a0Owned Funds of Rupees 10 Lakhs or more.<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 It shall have Unencumbered Term Deposit of not exceeding to 10% of its Outstanding Deposits.<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The Net owned fund to deposits ratio should be\u00a0over\u00a02:1.<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Nidhi Company shall file Form NDH-1(Return of Statutory Compliances), certified by CA\/CS\/CMA within 90 days of closure of First\u00a0yr.<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Where the corporate\u00a0fails to meet the above requirements within one year from the date of its incorporation, the same shall apply for seeking extension from RD and the said application be made in Form NDH-2 within 30 days from the closure of the First Financial Year.<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 RD is required to provide an order, within 30 days from the date of receipt of Application for the extension<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Nidhi Company shall file Form NDH-1(Return of Statutory Compliances), certified by CA\/CS\/CMA within 90 days of closure of First\u00a0yr.<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 In case of non-compliance of Point No. 1 beyond the second financial year, the said Nidhi shall not accept\u00a0any deposits from the commencement of second\u00a0year.<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Nidhi Company shall file Form NDH-3(Half Yearly Return), certified by CA\/CS\/CMA within 30 days of conclusion\u00a0of every\u00a0half year.<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Every Director of the Nidhi are required to the member of the said Nidhi.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>All About on Nidhi Company BRIEF INTRODUCTION It is a company incorporated in order to cultivate a habit of saving between its members or shareholders. In the\u00a0Indian financial sector, Nidhi Company is seen as a mutual benefit society and they are allowed to solely take up deposits from their members and lend money to their &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[647],"tags":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/3818"}],"collection":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/comments?post=3818"}],"version-history":[{"count":5,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/3818\/revisions"}],"predecessor-version":[{"id":3826,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/3818\/revisions\/3826"}],"wp:attachment":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/media?parent=3818"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/categories?post=3818"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/tags?post=3818"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}