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Online Nidhi Company Registration services in India

A Nidhi Company is a peculiar form of Non-Banking Financial Company that got incorporated under Section 406 of the Companies Act 2013. It emerged as a platform to cultivate the habit of thrift and savings among the members. Any company that wants to commence the Nidhi business must avail of the benefits of Nidhi Company registration services in India.

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Such a company functions internally and performs the activities of lending and borrowing funds within its members only. Thereby Nidhi Companies get acknowledged by several other names such as Mutual Benefit Funds, Permanent Fund, Mutual Benefit Company, and Benefit Funds. If you are also seeking to establish a Nidhi Company, then you must endure the Nidhi company registration process. This blog will act as a guide on how to register a Nidhi Company and provide its eligibility criteria and fee structure.

Advantages of Registering a Nidhi Company in India :

Here is the list of benefits that a company can avail from Nidhi Company registration:

  • Ease of formation: The registration process of a Nidhi Company is quite simple in contrast to NBFC registration. Applicants just have to provide some documents along with the application form; thereon, the company gets registered within 15 to 25 working days.
  • Cost-effective registration: An entrepreneur requires a considerable sum of capital while setting a company. However, it is not the case with a Nidhi Company wherein the minimum capital requirement is about Rs 5, 00, 000 and the Nidhi Company registration fees lay in between Rs 15,000 to Rs 19,999/- only.
  • Less compliance: Unlike other NBFCs, a Nidhi Company is not regulated by RBI and operates under the Nidhi Rules, 2004. RBI has exempted Nidhi Companies from stringent rules and compliance.
  • Invest less get more: Generally, the Net Owned Fund (NOF) ratio of a Nidhi Company is 1:20. It implies that by investing one rupee, one can raise a deposit of twenty rupees.

Eligibility Criteria for Registration of Nidhi Company :

As per Companies act, 2013, a Nidhi aspirant must fulfill these requirements:

  • Any company which is eager to serve online Nidhi Company registration services must have a minimum paid-up equity share capital of INR 5 lakh.
  • To start a Nidhi Company, one need to have a minimum of seven members and three members amongst them must be the directors.
  • Also, it’s essential to add ‘Nidhi Limited’ in the suffix of the Nidhi Company’s name.
  • Lastly, the company needs to assure that their sole objective to establish a Nidhi Company is to promote savings and thrift. Other than that, if the company carries any business of chit funds, leasing finance, hire-purchase finance, insurance or securities, then it may have to bear massive repercussions.

Encoding the Process of Nidhi Company Registration Online :

Follow this step by step procedure to do online Nidhi Company registration:

Step1: Obtain Digital Signature Certificate (DSC)

The first step that the proposed company’s directors need to undertake is to acquire Digital Signatures.

Step2: Apply for Company’s Name Approval

The next step is to apply for the name approval of your Nidhi Company as per RUN service. It enables an applicant to propose two names to the MCA. Ensure that the proposed name doesn’t resemble an already existent registered company.

Step3: Online Filing of the SPICe Form

After obtaining the name approval, the applicant has to file the SPICe form. In the form, the company has to provide all the information of shareholders along with filing MOA and AOA.

Step4: Incorporation of the company

It will take about 12 to 25 days for the completion of the Nidhi Company registration process. Subsequently, a Company Identification Number (CIN) will be issued to the newly formed Nidhi Company. The certificate will render as a valid proof of the company’s registration with the Ministry of Corporate Affairs.

Final Thoughts:

Nidhi Company is undeniably a beneficial business model that can be formed with a limited capital invested. The best way to register a Nidhi Company is to consult a reputed legal advisory that can help you to ease the process of Nidhi Company registration and streamline the procedure to attain name approval. 

You can also check my related blog:  Nidhi Company Registration Online Procedure