Nidhi Company
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Caption

A Nidhi company enjoys better credibility when compared to Mutual Benefit Organizations. Register your Nidhi company with the help of GST Suvidha Centers.

Nidhi Company

‘Nidhi’ means treasure or to finance or fund. The main objective of the company is to build the habit of saving among its members. It is just like a public limited company and needs a minimum of seven members and three directors to register it. It is also known as ‘Mutual benefit companies’ this terminology is mainly used in the banking sector. They borrow money from their members and pay interest on such borrowing and lend to its members on specified interest rates. It works as a community among a group of people, the company took money from one person and gave it to another member, and it circulates the money among the other members of the company. They are incorporated to build a money reserve, receive deposits and lend money to its members.

This structure is different from the other business forms in the sense that any person who is a member of Nidhi company can make deposits or borrow loans whenever the need arises. Any person can become part of the company and take the benefit of its activity only by taking part in the shares of the company. Anyone can start this business for the mutual interests of the members of the company.

What Do You Get In Nidhi Company

 1 RUN Application Form
 3 Director Identification Number
 7 Digital Signature
 Memorandum Of Association
 Article of Association
 PAN Card Of Company
 TAN Number Of Company
 Certificate Of Incorporation
 Board Resolution To Open Bank Account
 GST Registration
 Share Certificate
 Up to 5 Lakhs Authorized Capital

Applicability

The Central Government made ‘Nidhi Rules, 2014’ to carry out the objectives of ‘Nidhi’ companies. These rules shall apply to:

 Every company which had been declared as a Nidhi or Mutual Benefits under Section 620A(1)of Companies Act, 1956;

 Every company functioning on the lines of a Nidhi company or Mutual benefit society but has either not applied for or has applied for and is awaiting notification to be a Nidhi or Mutual Benefit Society under Section 620A(1)of Companies Act, 1956;

 Every company incorporated as a Nidhi according to the provisions of Section 406of the Companies Act, 2013.

Requirements for Nidhi Company

 A Nidhi company to be incorporated under this Act shall be a Public Company.
 It shall have a minimum paid-up equity share capital of Rs.5,00,000/-.
 No preference shares shall be issued.
 If preference shares had already been issued by a Nidhi Company before the commencement of this Act, such preference shares are to be redeemed following the terms of issue of such shares.
 The object of the company shall be cultivating the habit of thrift and savings amongst its members, receiving deposits from and lending to its members only for their mutual benefits.
 It shall have the words ‘Nidhi Limited’ as part of its name.

Documents Required For Nidhi Company Registration

 Pan Card : Pan Card is required for all the Directors and Shareholders of the company.

 ID Proof : Driving License, Voter Id Card or Passport. Anyone Id Proof is required for all the Directors and Shareholders of the company.

 Bank Statement : The latest Bank Statement not older than 2 months is required for all the Directors and Shareholders of the company.

 Passport Size Photo : A passport size photograph is required for all the Directors and Shareholders of the company.

 Registered Office Proof : Latest Utility bill not older than 2 months, Rent agreement in case of rented property Registry Proof or House Tax Receipt in case of owned property and No Objection Certificate (NOC) from the owner.

Penalty

 If a company contravenes any of the provisions of the rules the company and every officer of the company who is in default shall be punishable with fine which may extend to Rs.5,000/- and where the contravention is a continuing one, with a further fine which may extend to Rs.500/- for every day after the first during which the contravention continues.

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