Nidhi Company

1. Conditions for incorporation –

i. A Nidhi should be a ‘public company’.

ii. It should have a minimum paid up equity share capital of INR 5 Lakhs.

iii. On incorporation, Nidhi shall not issue preference shares. If the preference shares are already issued prior to incorporation, then, such shares should be redeemed in accordance with the terms of the issue of such shares.

iv. The object of Nidhi should be cultivating the habit of thrift and savings amongst the members and receiving deposits from and lending to its members for mutual benefits.

v. Nidhi shall have the last words as ‘Nidhi Limited’ as part of its name.

2. Documents for Registration –

• MOA – Memorandum of Association
• AOA – Article of Association
• DIN of directors
• Property documents / rent agreement / lease agreement
• NOC of owner / landlord
• PAN of members
• Address proof of members
• Identity proof

3. What we Provide:

• 3 Digital Signature Certificates
• 3 Director Identification Numbers
• 1 Name Approval Application under RUN
• Stamp duty on INR 5 Lakh Authorized Capital
• Company Incorporation using SPICe
• MOA & AOA
• PAN
• TAN
• MSME
• GST Registration

A Nidhi company is a type of company in India that is registered under the Companies Act, 2013. Nidhi companies are specifically designed to promote thrift and savings among its members. They are also allowed to lend money to their members.

Here are some of the key features of a Nidhi company:

• Purpose: The primary purpose of a Nidhi company is to promote thrift and savings among its members.
• Members: Nidhi companies can only have members. These members must be individuals or Hindu undivided families (HUFs).
• Deposits: Nidhi companies can accept deposits from their members. However, the maximum amount of deposit that a member can make is ₹2 lakh.
• Loans: Nidhi companies can lend money to their members. However, the maximum amount of loan that a member can take is ₹2 lakh.
• Regulation: Nidhi companies are regulated by the Ministry of Corporate Affairs (MCA).

Here are some of the benefits of forming a Nidhi company:

• Limited liability: The liability of the members of a Nidhi company is limited to the amount of capital that they have contributed to the company.
• Tax benefits: Nidhi companies can benefit from certain tax breaks.
• Ease of formation: Nidhi companies are relatively easy to form and maintain.

Here are some of the challenges of forming a Nidhi company:

• Compliance: Nidhi companies are subject to a number of regulatory requirements. This can be time-consuming and complex.
• Competition: The Nidhi industry is quite competitive. This can make it difficult to attract members and grow the business.

If you are considering forming a Nidhi company, you should carefully consider the benefits and challenges before making a decision. You should also consult with a lawyer to ensure that you comply with all of the relevant regulations.

Here are some of the key differences between a Nidhi company and a public limited company (PLC):

• Purpose: The primary purpose of a Nidhi company is to promote thrift and savings among its members, while the primary purpose of a PLC is to generate profits for its shareholders.
• Members: Nidhi companies can only have members, while PLCs can have both members and shareholders.
• Deposits: Nidhi companies can accept deposits from their members, while PLCs cannot.
• Loans: Nidhi companies can lend money to their members, while PLCs cannot.
• Regulation: Nidhi companies are regulated by the Ministry of Corporate Affairs (MCA), while PLCs are regulated by the Securities and Exchange Board of India (SEBI).