Nidhi Companies are a unique type of Non-Banking Financial Company (NBFC) in India, primarily focused on promoting savings and thrift among their members. These companies operate under the regulatory framework of the Nidhi Rules, 2014, and the Companies Act, 2013. If you’re looking to register a Nidhi Company in India, here’s a detailed guide to the process and the legal requirements.

What is a Nidhi Company?

A Nidhi Company is a mutual benefit society that facilitates financial activities exclusively among its members. The term “Nidhi” is derived from the Sanskrit word for “treasure,” reflecting the company’s focus on fostering savings and providing financial assistance to its members.

Steps to Register a Nidhi Company

1. Obtain Digital Signature Certificate (DSC) and Director Identification Number (DIN): All directors must obtain a DSC and DIN from MCA-certified agencies. These are essential for signing e-forms and other documents electronically.
2. Name Approval: Propose three distinct names for your Nidhi Company. The names should be original and not resemble any existing company. The Ministry of Corporate Affairs (MCA) will select one name from the three options.
3. Drafting Memorandum of Association (MOA) and Articles of Association (AOA): These documents outline the company’s objectives and operational framework.
4. Filing Form SPICe+: After name approval, fill in the details for Nidhi Company registration in the SPICe+ form. This form includes details of the company, members, subscribers, and applications for DIN, PAN, and TAN.
5. Issuance of Certificate of Incorporation (CIN): Upon successful verification, the MCA will issue the Certificate of Incorporation, allowing the company to operate as a Nidhi Company.
6. Apply for PAN, TAN, and Bank Account: Obtain the Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) for the company and open a bank account.
7. Filing Form NDH-4: This form is required to declare the status of the company as a Nidhi Company and to comply with the Nidhi Rules, 2014.

Legal Requirements and Documents

To register a Nidhi Company, you will need the following documents:

1. Incorporation Documents:
   • Certificate of Incorporation
   • Memorandum of Association (MOA)
   • Articles of Association (AOA)
2. KYC Documents:
   • PAN Card of the company
   • PAN Card, Aadhaar Card, Passport, or Voter ID of directors and shareholders
   • Address proof (Electricity bill, Water bill, etc.) of the registered office
3. Financial Documents:
   • Bank account statement showing the deposit of the required capital
   • Audited financial statements of the company
4. Board Resolution: Authorizing the registration and operation of the Nidhi Company.
5. Business Plan: Detailed business plan including future projections, organizational structure, and income analysis.
6. Net Worth Certificate: From a Chartered Accountant, certifying the company’s net worth.
7. Compliance Documents: Documents evidencing compliance with Nidhi Rules, 2014, and other regulatory guidelines.

Conclusion

Registering a Nidhi Company in India involves a detailed process and adherence to legal requirements. By following the steps outlined above and ensuring compliance with regulatory guidelines, you can successfully establish a Nidhi Company and contribute to the financial inclusion of your members.