A Nidhi Company is a type of non-banking financial institution in India that is recognized under the Companies Act, 2013. The primary objective of a Nidhi Company is to cultivate the habit of thrift and savings among its members. It functions on the principle of mutual benefit and works for the common good of its members.
Here are the steps involved in the registration of a Nidhi Company in India:
- Incorporation of Company:
- Obtain Digital Signature Certificate (DSC) for the proposed directors of the company.
- Obtain Director Identification Number (DIN) for the proposed directors.
- Choose a unique name for the company and check its availability.
- Prepare the Memorandum of Association (MOA) and Articles of Association (AOA) for the company.
- Application for Incorporation:
- File the application for incorporation with the Registrar of Companies (ROC) along with the necessary documents, including MOA, AOA, and other required declarations.
- Pay the prescribed fees for incorporation.
- Minimum Capital Requirement:
- Ensure that the minimum paid-up capital requirement is met, the minimum paid-up equity share capital for a Nidhi Company is Rs. 5 lakhs.
- Compliance with Nidhi Rules:
- Ensure compliance with the Nidhi Rules, which specify the regulations and requirements for Nidhi Companies.
- Appointment of Directors:
- Appoint at least three directors, and ensure that they meet the eligibility criteria.
- Filing of Statutory Forms:
- File the necessary statutory forms with the ROC within the specified time frames.
- Obtaining Certificate of Incorporation:
- Once the ROC is satisfied with the documents and compliance, they will issue the Certificate of Incorporation.
- Commencement of Business:
- After obtaining the Certificate of Incorporation, the Nidhi Company must commence its business within one year.
- Other Regulatory Compliances:
- Ensure ongoing compliance with the Companies Act, Nidhi Rules, and other applicable laws.
- Membership and Operations:
- Start the process of member enrollment and carry out the operations in accordance with the Nidhi Rules.
