Online Nidhi Company Registration
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Nidhi Company Registration - Fees, Online Procedure, Documents Required
Updated on Feb 11, 2024 10:39:28 AM
Nidhi companies offer a compelling alternative for individuals seeking substantial growth opportunities for their savings compared to traditional banks. Governed by the Companies Act, 2013, Nidhi companies provide an effective avenue for saving money with significant potential for financial expansion. Discover the advantages, procedure, prerequisites, and costs associated with registering a Nidhi company.
What is Nidhi Company?
A Nidhi Company operates as a Non-Banking Financial Company (NBFC), primarily engaging in lending and borrowing activities among its members. The core objective is to promote a savings culture among its members while adhering to principles of mutual benefit, overseen by the Ministry of Corporate Affairs.
Unlike traditional banks, Nidhi Companies do not require licensing from the Reserve Bank of India (RBI), making their formation straightforward and hassle-free. Commonly referred to as Mutual Benefit Finance Companies, they are registered as public limited companies and must incorporate “Nidhi Limited” as the concluding words of their name.
Nidhi Company registration Process
Registration of a Nidhi company is conducted entirely online, necessitating the mandatory acquisition of a Digital Signature Certificate (DSC). Both directors and subscribers to the company’s memorandum must procure a DSC from accredited agencies. The DSC application process is streamlined and can be completed within 24 hours, involving straightforward document verification, video authentication, and phone confirmation.
To apply for the name of a Nidhi Company, one can utilize the SPICe RUN form, which is integrated into the SPICe+ form. During the name application process, it is necessary to specify the industrial activity code and the object clause of the company.
Post name approval, details with respect to registration of the company has to be drafted in the SPICe+ form. It is a simplified proforma for incorporating a company electronically. The details in the form are as follows:
Details of the company
Details of members and subscribers
Application for Director Identification Number (DIN)
Application for PAN and TAN
Declaration by directors and subscribers
Declaration & certification by professional
SPICe e-MoA and e-AoA are the linked forms which have to be drafted at the time of application for company registration.
Memorandum of Association (MOA) is defined under section 2(56) of the Companies Act 2013. It is the foundation on which the company is built. It defines the constitution, powers and objects of the company.
The Articles of Association (AOA) is defined under section 2(5) of the Companies Act. It details all the rules and regulations relating to the management of the company.
Following the approval of the documents by the Ministry of Corporate Affairs, the company will receive the PAN, TAN, and Certificate of Incorporation from the respective departments. Subsequently, the company needs to open a current bank account using these documents. If assistance is required for the current bank account opening process, feel free to contact us. We are here to help you with the necessary procedures.
How much does it cost to register Nidhi Company ?
Steps | Cost (Rs.) |
---|---|
Digital Signature Certificate | ₹7,000 |
DIN Allocation | ₹1,000 |
Government Fee | ₹1,700 |
Professional Fee | ₹6,999 |
Total Cost | ₹16,699* |
Important Note: The total incorporation fees of a Nidhi Company varies from state to state. The DSC charges are for 7 members. Refer to the map for state-wise prices.
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Documents required for Nidhi Company registration
- Passport size photographs of members
- Copy of Aadhar Card or Voter ID
- Copy of PAN Card of the members
- Email address and phone number
- Proof of registered place of business
- Bank statement (not older than two months)
- No Objection Certificate from the owner of the property
Documents you’ll get after company registration
Post incorporation of Nidhi company, you’ll receive the following documents:
- Certificate of Incorporation
- Permanent Account Number (PAN) of the company
- Tax Deduction or Collection Account Number (TAN) of the company
- Articles of Association (AoA)
- Memorandum of Association (MoA)
- Director Identification Number (DIN)
- Digital Signature Certificate (DSC)
- EPF and ESIC registration documents
- Company Master data
Why Taxvilla
On average, it takes around 7-10 working days to register a private limited company in India subject to document verification by MCA.