Monday, May 25, 2020

Nidhi Company Registration Process and Documents



Nidhi Company registration process is not very difficult and not take much the whole process. To proceed with the concept of nidhi company, we like to give a brief introduction to Nidhi Company.

Nidhi Company is a company work as a small bank, this is the reason some people use to know this company as a Nidhi Bank company. In this company directors manage the whole process of collecting the fund from the market and distribution the fund in the market. We need to understand that the Nidhi Company only works for their own members not for any other person. If any person wants to take loan from the Nidhi bank then they need to become a member of the company.

Nidhi company follow all rules of Nidhi rules 2014 prescribed by the Ministry of corporate affairs. The process of registration and all applications can be read in The nidhi rules 2014.

Nidhi Company Registration Process

For Registration of Nidhi company, we need to consider many facts. So we are describing the steps involved in the process of Nidhi Company registration.

Step 1: Collection of Seven members


Nidhi Company is the public limited company and every public limited company needs to have at least 7 members which are also known as the shareholders or promoters of the proposed company. So we need to arrange 7 members for the nidhi company for the registration. At the time of finding new members we need to consider Rule 8 of Nidhi rules.

Rule 8. Membership.—(1) A Nidhi shall not admit a Company or trust as a member, which means only an Individual and a partnership firm can become members.

(2) No Nidhi company can reduce there members blow 200 at any time of there operation, in any circumstances its happens then the company must take prior approval of the RD.

(3) Age of member must not blow then 18 years old:
In case of  deposits, minor may be accepted as a member, if they are made by the natural or legal guardian who is a member of Nidhi.

Step 2: Determine Director


In Nidhi company, there must be at least 3 directors at the time of registration, so we need to choose any of 3 from the 7 members to be a director at the time of nidhi company registration process. At the time of finding new member, we need to consider the Rule 17 of Nidhi rules.

Rule 17. Rules relating to Directors.—(1) The Director must be a member of Nidhi company in which he wants to be director.

(2) The director of Nidhi Company cannot hold the office of director for more than 10 years continuously.

(3) The director can be reappointed in any Nidhi company after the expiration of 2 years from the date of resignation or removal.

(4) Central the government may increase the tenure of any director in the nidhi company
terminate on expiry of such extended tenure.

(5) Coming Director must comply with the requirements of subsection (4) of Section 152 of the Act and shall not have been disqualified under section 164 of the companies act 2013.


Step 3: Documents required for nidhi company registration


Every member of the company need to provide the following documents at the time of the Nidhi Company registration process.

      1)      PAN card (Permanent Account Number)
      2)      Adhaar Card
      3)      Bank statement / Passbook ( Must not be old more than 60 days )
      4)      Photo
      5)      Email ID
      6)      Phone number

After collection of all these documents of the members we need to apply for the Digital Signature.

Step 4: Digital Signature (DSC)


A digital signature is a signature under a pan drive token, this signature is required for every step of company registration and management after company registration. The Digital signature of members who are not a director of the company is not required after Nidhi company registration. This signature looks like a normal pen drive and the life of this signature is not more than 2 years. Every person needs to create a digital signature after 2 years.

Step 5: Name Approval of Nidhi Company


Name approval is very important in the Nidhi company registration process. If you like you can file your company directly to the department without any name approval, but we suggest taking name approval first so that chances of getting company is very high. Name must contain Nidhi as a middle name and Limited as the last name of the company. We cannot use any other last name or middle name in the nidhi company.

We should understand that the first name of the nidhi company must not resemble or same to any other nidhi company or any other company having the financial objects in the MOA.

Step 6: Preparation of document and submit to the department


After all the above process of Nidhi company registration we need to create some specific document which need to submit with Spice + from issued by the department, these documents are as follow

     1)      DIR 2 to be created in which every director will give permission to becoming director and other details like any other company in which he is already a director.

     2)      Declaration is required to be given by all the members of the Nidhi company, these declarations must be created as per the rule 6 of the Nidhi rules 2014. There are some restriction on the working of the nidhi company and all those restriction to be signed by all promoters of nidhi company.

     3)      INC 9 to be filed by all members of the new company, in this form very promoters need to give a clarification that he had not committed any mistake in any other law of the companies act.

So above we have discussed the Nidhi Company registration process which also known as Nidhi bank registration. The registration is very simple and easy but we should understand that the registration process required the Chartered accountant or a Company secretary for preparing the documents, We are the CA firm providing services of Nidhi Company registration. Our Online CA service is best in this Nidhi Company registration.

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