Nidhi Company Registration in India
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Benefits
- Low Capital Requirement
- Encourages Savings
- Member-Governed
- Affordable Borrowing
- Uninterrupted Operations
Benefits of Nidhi Company Registration
- Low Capital Requirement: As per Nidhi Rules, 2014, the minimum capital required is only ₹10 lakhs.
- Encourages Savings: Promotes the habit of saving and thrift among its members.
- Member-Governed: Free from external interference as it is not governed by trusts or committees, making it exclusively managed by its members.
- Affordable Borrowing: Members can borrow at lower interest rates compared to banks, with fewer obligations.
- Uninterrupted Operations: The company continues to function seamlessly even in the event of a member's death, insanity, insolvency, or retirement.
Documents Required for Nidhi Company Registration in India
Basic Checklist
- Three Directors: Minimum three directors, with at least one being an Indian Citizen and Resident.
- Seven Promoters: Minimum seven promoters; can overlap with directors.
- Unique Name: Must include “Nidhi Limited” and be distinct from existing companies or trademarks.
- Paid-Up Capital: Minimum ₹5 lakhs in equity share capital.
- Registered Office: Physical location required with applicable licenses.
Documents for Registered Office
- Recent bank statement or utility bills (within 2-3 months).
- Property tax receipt copies.
- Notarized rental/lease agreement.
- Scanned sale/property deed.
- No Objection Certificate (NOC) from the property owner.
- Documents for Indian Directors/Promoters
- PAN card of shareholders and directors.
- Passport-sized photograph (jpeg/pdf).
- ID proof (Voter ID/Passport/Driving Licence).
- Address proof (Bank Statement/Utility Bill).
Note: Digital Signature Certificate (DSC) is mandatory for incorporation.
Documents for NRI Directors/Promoters
- ID Proof: Passport/PAN card, verified by the Indian Embassy.
- Address Proof (India): Bank Statement/Utility Bill, certified by CA/CS/CMA.
- Abroad Address Proof:
- Hague Convention (HC): Notarized and apostilled.
- Outside HC/Commonwealth: Notarized with certificate authenticated by Diplomatic/Consular Officer.
Documents for Foreign Nationals
- ID & Address Proof: Passport/PAN card.
- Verification Based on Residence:
- Hague Convention (HC): Notarized and apostilled.
- Commonwealth (CW): Notarized by Public Notary.
- Outside HC/CW: Notarized and authenticated by Diplomatic/Consular Officer.
Additional Requirement: Declaration of interest (2%+ shares) in Indian companies.
Requirements for Nidhi Company Registration in India
- Minimum Membership: The company must have at least 200 members or shareholders by the end of its first year.
- Net Owned Funds (NOF): Must exceed ₹10 lakhs.
- NOF-to-Deposit Ratio: Should be maintained at more than 1:20.
- Unencumbered Deposits: At least 10% of the total outstanding deposits must be held as unencumbered term deposits.
- Interest Rates: Can offer up to 12.5% interest on fixed and recurring deposits and 6% on savings accounts.
- Deposit Limit: Allowed to accept deposits up to 20 times the invested amount.
- Compliance: Annual Returns, Income Tax Returns, and Financial Statements must be filed every year.
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