Nidhi Company Registration

Nidhi Company Registration

Nidhi Company registration in India refers to a type of non-banking financial institution (NBFC) that facilitates borrowing and lending of money exclusively among its members or shareholders.

  • Member-exclusive transactions – It borrows and lends only between its members or shareholders.
  • No external dealings – It cannot accept deposits or provide loans to individuals who are not members.
  • Minimum membership requirement – The company must have at least 200 members within one year of registration.
  • Minimum capital requirement – Nidhi companies must have a minimum paid-up equity capital of ₹10 lakhs.

Overview of Nidhi Company Registration

A Nidhi company is a type of non-banking financial company (NBFC) recognized under Section 406 of the Companies Act, 2013, and governed by the Nidhi Rules, 2014. These companies focus on borrowing and lending money exclusively among their members, not the general public. To register a Nidhi company, at least seven members are required.

Regulated by the Ministry of Corporate Affairs (MCA), Nidhi companies are considered mutual benefit funds and cannot engage in activities beyond lending and borrowing among members. They are exempt from RBI registration but must comply with specific MCA regulations.

Registration Process

  1. Choose a Nidhi Company Name that complies with legal and regulatory requirements.
  2. Draft the Memorandum & Articles of Association (MOA & AOA) outlining the objectives, rules, and regulations for the company.
  3. Submit Documents including identity proof and address proof of directors, and registered office address.
  4. File the Application with the Registrar of Companies (RoC) for obtaining the Certificate of Incorporation.
  5. Obtain Certificate of Registration once approval is granted.
  6. Apply for PAN & TAN for tax purposes.

Documents Required for Nidhi Company Registration

The list of Documents required for a Nidhi Company registration in India are as follows:

  • Directors Identification Number, i.e., DIN and Digital Signature i.e. DSC
  • Passport sized Photographs of the proposed directors and members
  • Memorandum of Association of the company (MOA)
  • Articles of Association of the company (AOA)
  • Registered place of business proof such as lease or rent agreement
  • No Objection Certificate (NOC) provided by the landlord
  • Ownership proof of place of business in case the premises are owned
  • PAN number
  • Address Proof: Bank Statement, Residence Card, or any other Government issued identity proof having the address
  • Residential Proof: Telephone Bill, Mobile Bill, Electricity Bill and Bank Statement
  • Passport
  • Registered Office Proof

Tax Advantages

  • Income Tax Exemptions on earnings for mutual benefit.
  • Tax Deductions for member contributions.

Why Choose TaxMyles for Nidhi Company Registration?

Choosing the right partner for Nidhi Company registration is vital. TaxMyles is the preferred choice for entrepreneurs due to:

  • Expertise & Experience – Our team has a proven track record in successfully registering Nidhi Companies.
  • Comprehensive Services – We handle everything from obtaining Digital Signatures to filing documents and securing approvals.
  • Prompt Support – Our team is always ready to assist you quickly, ensuring a smooth and timely registration process.