Nidhi Company is one of the types of NBFCs registered in India. Nidhi Company is also called as Nidhi Banks or Mutual Benefit Finance Company, registered with the main objective to cultivate the habit of savings amongst its members. Nidhi Company is indulged in activities of Borrowing and Lending of funds.

Nidhi Company can be formed with ease as there are no eligibility criteria for the minimum qualification of directors. Unlike NBFCs, this category of NBFC needs no approval from RBI to operate. Here we are going to discuss about Nidhi company registration online procedure Nidhi Company is registered under the Companies Act 2013 and is regulated by Nidhi Rules. As per these rules, Nidhi Company is not allowed to make transactions with anyone other than its registered members and the permissible district of work.

Following are the simplified steps to Register Nidhi Company in India:

• Arrange the KYC of all the directors and subscribers before registering the company.
• Apply for DSC of the directors and subscribers required for e-signing the application form
• The proposed company shall reserve the name for its company. Nidhi Company shall end the name of its company through the words “Nidhi Limited”. Name can be applied online on MCA through web service RUN
• Once the name is approved and ROC issues the name approval letter, an applicant can proceed further to apply for company incorporation
• The applicant shall download SPICe forms available on MCA and fill the complete form by attaching the documents and affixing the DSC at the end. The form should not exceed the maximum size of 6 MB.
• Once the application is filed, ROC upon proper verification shall approve the application. If the documents or information found incomplete, ROC can also put the application on resubmission which as to re-applied by doing necessary corrections
• Once all the information provided are accurate, ROC will issue COI and thereafter it can operate its activities

• Id Proof and Address proof of all directors
• Id Proof and Address proof of all subscribers
• PAN and Aadhar of directors
• Address proof of premise used as a registered office
• Passport size photograph of subscribers and directors

Following points you should know before you start your own Nidhi Company:

• Nidhi Company is regulated by two regulators in India such as Companies Act 2013 and Nidhi Rules 2014.
• Nidhi Company is one of the NBFCs is outside the scope of RBI, thus there is no interference on operations of Nidhi Company by RBI
• Nidhi Company can be engaged only in borrowing or lending of funds and no other activities such as vehicle financing or micro-financing business in India.
• Nidhi Company shall be incorporated with a minimum of 7 members and 3 directors
• Nidhi Company has to exceed its members up to 200 after 12 months of its incorporation
• Nidhi Company is permitted to give credit against security such as gold, property, FDs, etc.
• Nidhi Company can be registered with a minimum capital of INR 5 Lakhs.
• Nidhi Company shall maintain a ratio of the net owned fund to deposit of  more than 1:20

In case, you need assistance in Nidhi Company registration online, feel free to contact us. Our team will ease the entire process for you.