Register a company –Venture care|Nidhi Company Online, Nidhi Company Registration Process

EANING:
Nidhi Company means a company which has been incorporated as a public company with the object of-Culvang the habit of thri and savings amongst its members and receiving deposits from, and lending to, its members only, for their mutual benefit.

OBJECT TO INCORPORATE NIDHI COMPANY:
Nidhi Company is incorporated with following objecves:
• To smulate savings among its member
• To lend Loans and receive money as deposits for the purpose from only its members.
• Since Nidhis come under NBFCs, the RBI is empowered to issue direcons to them in maers relang to their deposit acceptance acvies. However, since Nidhis deal with their shareholdermembers only, RBI has exempted such nofied firms from the provisions of the RBI Act and other direcons applicable to NBFCs.

APPLICABILITY:
The Central Government made ‘Nidhi Rules, 2014’ for the purpose of carrying out the objecves of ‘Nidhi’ companies. These rules shall be applicable to
• Every company which had been declared as a Nidhi or Mutual Benefits under Secon 620A(1)of Companies Act, 1956;
• Every company funconing on the lines of a Nidhi company or Mutual benefit society but has either not applied for or has applied for and is awaing noficaon to be a Nidhi or Mutual Benefit Society under Secon 620A(1)of Companies Act, 1956;
• Every company incorporated as a Nidhi pursuant to the provisions of Secon 406of the Companies Act, 2013.

PRE-REGISTRATION REQUIREMENTS FOR REGISTERING A NIDHI COMPANY :
Minimum Three Directors:
Minimum three Directors are required to incorporate Nidhi Company. All this three director has to act as members of the company.

Minimum Seven Members:
Nidhi Company can be started with seven members. Out of which 3 are also to be appointed as directors.

Minimum Capital Requirement:
Nidhi Company as Public Limited Company Should have Capital of Rs.5,00,000/- Like Public Limited Company.

No Preference Shares shall be issued.
Object of the Company
The objecve of such a firm would be to imbibe in the members a habit of thri and saving and the services would only be restricted to its members;.
The name of the company must have word as Nidhi Limited at the end.

PROCEDURE FOR INCORPORATION OF NIDHI COMPANY :
Get Digital Signature Cerficate (DSC) of all seven members.
Get Director Idenficaon number (DIN) of three Directors by using DSC.
Suggest at least Six Company name. We will do search for name availability.
Apply to ROC for name approval with adding word Nidhi Limited. Once name is approved by ROC File Incorporaon document with ROC like MOA AOA Consent of
Director, Affidavit and declaraon from directors etc.
Once Incorporaon form is approved by ROC, ROC shall issue Cerficate of Incorporaon with PAN and TAN No.

Requirement to Apply for DSC:
All 7 members should have DSC
• Pan Card Self Aested
• Residenal Proof Self Aested
• Dully fill and sign DSC applicaon form.

Requirement to Apply for DIN:
(Minimum Three Directors are required for Incorporaon of Nidhi Company)
• Photograph of the Applicant – To be Self-aested.
• PA N – To be Self-aested Mobile No. Email id.
• Educaonal Qualificaon
• Occupaon
• Proof of residence of applicant
• Address proofs like passport, elecon (voter identy) card, raon card, driving licence, electricity bill, telephone bill or bank account statement shall be aached and should be in the name of applicant ( shall not be later than 2 months).
• DSC of Individual.

Requirement to Apply for Name Availability:
• Six Proposed name with significance of Name
• Authorized Capital- Minimum 5 Lacs
• Jurisdicon of Registrar of Companies.
• Main Object to be pursued by Company

Requirement to Apply for Incorporaon of Nidhi Company:
• Registered office address of Company.
• Recent Address proof with NOC from Owner.
• Consent from all Directors
• Affidavit and declaraon from all directors and subscribers.

TIME PERIOD:
Time Required for Incorporaon of Nidhi Company Shall be 20-30 days, depending on government approval.

POST-REGISTRATION REQUIREMENTS FOR A NIDHI COMPANY :
There are certain Compliances which Nidhi Company has to do aer incorporaon of Nidhi Company. Every Nidhi Company shall, within a period of one year from Incorporaon of the company, ensure that it has
Not Less than 200 Members:
Aer incorporaon, a Nidhi company must add at least 200 members to comply with this requirement of law. Further, it has to maintain this during the course of me. If the total members falls less than 200 at any me thereaer, it will leave the company at default. However, if the company is not able to reach the limit of 200 members, then you must apply for me within 30 days of closure of financial year in Form NDH-2 with Regional Director.
Net Owned Fund:
Net owned funds shall be Rs.10,00,000/- or more (‘Net owned funds’ means the aggregate of paid up equity share capital and free reserved as reduced by the accumulated and intangible assets appearing in the last audited balance sheet).
Ratio:
Ratio of net owned funds to deposit shall be not more than 1:20. This ratio is very easy to understand. Suppose, if you have net owned funds of 10 lakh, then your total deposit limit would be INR 2 Crore.
Deposit:
Unencumbered term deposits of not less than 10% of the outstanding deposits as specified in Rule 14.
Members restricon:
A Nidhi Company shall not admit a body corporate or trust as a member. A minor shall not be admied as a member of Nidhi Company. But deposits may be accepted in the name of a minor, if they are made by the natural or legal guardian who is a member of Nidhi

GENERAL RESTRICTIONS:
Rule 6 provides general restricons.
Carry on the business of
• Chit Fund,
• Hire Purchase Finance,
• Leasing Finance,
• Insurance or Acquision of Securies issued by anybody corporate;

Issue
• Preference Shares,
• Debentures or
• Any Other Debt Instrument by any name or in any form whatsoever;

Open any Current Account with its members;
Acquire another company by;
• Purchase of securies or
• Control the composion of the Board of Directors of any other company in any manner whatsoever or
• Enter into any arrangement for the change of its management, unless it has passed a special resoluon in its general meeng and also obtained the previous approval of the Regional Director having jurisdicon over Nidhi;
• Carry on any business other than the business of borrowing or lending in its own name;
• Accept Deposits from or lend to any person, other than its members;
• Pledge any of the assets lodged by its members as security;
• Take Deposits from or lend money to anybody corporate;
• Enter into any Partnership Arrangement in its borrowing or lending acvies;
• Issue or cause to be issued any adversement in any form for solicing deposit;
• Pay any brokerage or incenve for mobilizing deposits from members or for deployment of funds or the granng loans.

Share capital allotment:
Every Nidhi shall allot
• To each deposit holder at least a minimum of 10 equity shares or shares equivalent to Rs.100/-.
• To each savings account holder and a recurring deposit account holder at least 10 equity shares of Rs.10/-.

Acceptance of deposits:
• A Nidhi shall not accept deposits exceeding 20 mes of its Net Owned Assets as per last audited financial statements.
• The fixed deposits shall be accepted for a minimum period of 6 months and a maximum period of 60 months.
• Recurring deposits shall be accepted for a minimum period of 12 months and a maximum period of 60 months.
• In case of recurring deposits relang to mortgage loans, the maximum period of recurring deposits shall correspond to the repayment period of such loans granted by Nidhi.
• The maximum balance in a savings deposit account at any given me qualifying for interest shall not exceed Rs.1,00,000/- and the interest shall not exceed 2% above the rate of interest payable to savings bank account by naonalized banks.
• Interest for fixed and recurring deposits shall be at a rate not exceeding the maximum rate of interest prescribed by RBI which the NBFC can pay on their public deposits.
•
Every Nidhi shall invest and connue to keep invested, in unencumbered term deposits with a scheduled commercial bank or post office deposits in its own name an amount which shall not be less than 10% of the deposits outstanding at the close of the business on the last working day of the second preceding month.
In case of unforeseen commitments, temporary withdrawal may be permied with the prior approval of the Regional Director for the purpose of repayment to depositors, subject to such condions and me limit which may be specified by the Regional Director to ensure restoraon of the prescribed limit of 10%