How to Register a Nidhi Company in India: A Step-by-Step Guide

Insights by CA Adda - Nidhi Company Registration Consultant in India

Nidhi companies, a special type of non-banking financial company (NBFC), play a vital role in promoting savings habits among members and providing them with easy access to credit. If you're considering establishing a Nidhi company in India, navigating the registration process can seem daunting. But worry not! This comprehensive guide by CA Adda, your one-stop shop for all things accounting and finance, will walk you through the process step-by-step.

Understanding Nidhi Company Requirements

Before diving into the registration process, ensure your company meets the following eligibility criteria:

• Minimum Members: A minimum of seven members are required to form a Nidhi company.
• Minimum Directors: At least three directors, with at least one resident director (based in India), are mandatory.
• Minimum Capital: The minimum paid-up share capital is Rs. 10 lakh.
• Business Objective: The company's objective should be restricted to accepting deposits from and lending money to its members only.

Step-by-Step Guide to Nidhi Company Registration

• Director Identification Number (DIN) and Digital Signature Certificate (DSC):

  1. All proposed directors must obtain a DIN, which acts as a unique identification number.
  2. Each director will also need a DSC for digitally signing online forms during the registration process.

• Memorandum of Association (MoA) and Articles of Association (AoA):

  1. The MoA defines the company's fundamental objectives and the scope of its operations.
  2. The AoA outlines the internal rules and regulations governing the company's functioning.
  3. Ensure these documents clearly reflect the company's purpose as a Nidhi company.

• Name Approval Process:

  • File an application with the Registrar of Companies (ROC) for approval of your chosen company name. The name should be unique and comply with Nidhi company naming guidelines (typically ending with "Nidhi Limited").

• Application for Registration:

  • Once the name is approved, submit the following documents to the ROC electronically:

    • DINs of directors
    • MoA and AoA
    • Proof of registered office address
    • KYC documents of directors and members
    • Any other documents as mandated by the ROC

• Certificate of Incorporation (CIN):

  • Upon successful registration, the ROC will issue a Certificate of Incorporation (CIN), officially recognizing your company as a Nidhi company.

Additional Considerations

• Compliance with Nidhi Rules: Ensure you understand and adhere to the Nidhi Rules, which govern various aspects of Nidhi company operations, including deposit-taking limits, lending regulations, and dividend distribution policies.
• Professional Help: Consider seeking guidance from a Chartered Accountant (CA) to ensure a smooth registration process and compliance with regulations. CA Adda can connect you with experienced CAs to assist you in incorporating your Nidhi company.

Get Started with Nidhi Company Registration Today with CA ADDA

By following this step-by-step guide and considering the additional points, you're well on your way to registering your Nidhi company in India. Remember, CA Adda is your reliable partner throughout this process. Visit our website www.CaAdda.com to learn more about our Nidhi company registration services and connect with our expert CAs.