Nidhi Company Registration
A Private Company is a company started with minimum 2 members and which can be maximum to 200. A Private Limited Company enjoys various Legal rights as compared to any other form of Business Entity.
Q. What is NIDHI Limited Company ?
As per section 406 of companies act 2013’ Nidhi” means a company which has been incorporated as a Nidhi with the object of cultivating the habit of thrift and savings amongst its members, receiving deposits from, and lending to, its members only, for their mutual benefits.
Q. What are the Benefits Of NIDHI Limited Company ?
- Limited RBI Regulations.
- Easy to form.
- Governed by Nidhi Rules.
- Increase the habit of savings.
Q. What are the documents required of NIDHI Limited Company ?
Here is the list of documents required for NIDHI Limited Company:
For Directors and Promoters:
- PAN Card
- ID Proof (Anyone of Aadhar Card/ Voter Card/ Driving License and Passport)
- Address Proof (Anyone of Latest Bank Statement/ Electricity Bill/ Mobile Bill and Telephone Bill)
For Registered Office:
- In case the premises are Rented
- Rent agreement (Notarized)
- Latest Electricity bill
- NOC from the Owner in the name of any Director or Proposed Company
- In case the premises are Owned by any Director or any Relative
- Latest Electricity bill
- NOC from the Owner in the name of any Director or Proposed Company.
Q. How many members and director are needed to incorporate a NIDHI limited company?
Minimum seven (7) members and three (3) Directors are needed to incorporate a NIDHI limited company. Three members out of total seven members may be the proposed directors cum promoters of the company.
Q. What is the procedure to incorporate a NIDHI Limited Company?
Procedure to incorporate a NIDHI limited company as follows:
- Apply for DSC (Digital Signature Certificate)
- Apply for DIN (Director Identification Number)
- Apply for Name (SPICE+ PART-A)
- Apply for Incorporation of the company (SPICE+ PART-B)
- Get Certificate of Incorporation.
Q. How long does it take to incorporate a NIDHI limited company?
It takes around 8-10 days to incorporate a NIDHI limited company, if every documents, Name of company, and others are in order.
Q. Is it mandatory to keep the minimum capital as Rs. 5,00,000?
As per the companies Act, 2013 it is mandatory to keep the minimum paid-up capital to be Rs, 5,00,000, in case of NIDHI Company only.
Q. Do we need to deposit the capital of company somewhere?
Such Minimum Capital of the company needs to be deposited in the current account of the company within 2 months of incorporation of the company against the shares subscribed by the promoters.
Q. Can a NRI/Foreigner be the director/member of the NIDHI Limited Company?
No, a NRI/Foreigner can’t be a director cum member in a NIDHI limited company.
Q. Is it possible to incorporate a NIDHI Limited Company with all the NRI/foreigner as its director cum members?
No, As per the companies Act, 2013 there is no provision for Foreigners to invest in Nidhi Limited.
Q. How many persons can be the members of NIDHI Limited Company?
Ans: As per Companies Act, 2013, there is no limit on maximum number of members in a NIDHI limited Company.
Q. Can we use the residence address as the registered office of the company?
Yes, there is no such restriction in the law to keep the resident address as the registered address of the company.
Q. Can we change Company Address after the incorporation?
Yes, we can change the Company Address within the local city according to our wish after anytime of company incorporation just by passing a resolution and filing of Form INC-22 with the ROC.
Q. Can we change the directors of the company?
Yes, there is no such restriction on changing the directors of the company. You may Add/Remove the directors from the company with their wish just by passing a resolution, preparing of some documents and filing of Form DIR-12 & DIR-11 with the ROC.
Q. Can we give documents related t0 registered office address after incorporation?
Yes, You may provide the registered office details within 30 days of incorporation, but one address as provisional address will be given at the time of incorporation which will be printed on the Certificate Of Incorporation.
Q. Will we receive Certificate Of Incorporation in hard?
No, Ministry Of Corporate Affairs issues the Certificate Of Incorporation in soft only. Now, there is no document which needs to send or receive in hard for incorporation of the company. The Ministry is following the initiative of Digital India where there is no need for hard documents.