Nidhi Company Registration
- Get Your Company Registered in Only 10 Working Days!
At Global Consultants, we provide expert guidance to help you set up your mutual Benefit Society quickly and efficiently. From obtaining 1 Digital Signature Certificate (DSC) and 3 Director Identification Numbers (DINs) to company name registration and securing RBI in-principle approval, we cover it all.
- ● Guaranteed Registration: Complete your Mutual Benefit Society registration in 10 working days.
- ● Transparent Process: Includes 1 DSC, 3 DINs, company name registration, and expert support.
- ● Affordable Pricing: Simple and affordable pricing with no hidden costs
- What is a Nidhi Company?
A Mutual Benefit Society is a type of Non-Banking Financial Company (NBFC) operating in India, governed by Section 406 of the Companies Act, 2013 and the Nidhi Rules, 2014. The primary purpose of a Mutual Benefit Society is to promote the habit of thrift and savings among its members. Unlike other NBFCs, Nidhi Companies are restricted to borrowing and lending activities exclusively among their members, making it a closed system of mutual financial support.
Mutual Benefit Society cannot accept deposits from or lend to the general public. Although exempt from RBI registration, they must comply with regulations set forth by the Ministry of Corporate Affairs (MCA).
- Benefits of Nidhi Company Registration
- ● Affordable Borrowing: Mutual Benefit Societys members enjoy lower interest rates on loans, making borrowing much more affordable compared to traditional banks.
- ● Encourages Savings: Nidhi Companies foster a culture of savings among members, helping individuals build financial discipline and mutual benefit.
- ● Simplified Registration Process: The registration process for a Mutual Benefit Society is simpler compared to traditional financial institutions, and it allows members to enjoy financial assistance in a structured, low-cost environment.
- Company Registration Requirements
A minimum of 7 members and 3 directors are required to start the company.
● The company must have a minimum paid-up equity share capital of ₹5 lakhs.
● Within one year of incorporation, the company must raise Net Owned Funds (NOF) to ₹10 lakhs.
● The NOF to deposits ratio should not exceed 1:20, and the company must maintain at least 10% of its total deposits in unencumbered term deposits in a nationalized bank.
- Nidhi Company Registration Process
- ● Name Reservation: We help you reserve your company name through the Ministry of Corporate Affairs (MCA) portal.
- ● DSC and DINs: Obtain 1 Digital Signature Certificate (DSC) and 3 Director Identification Numbers (DINs) for the company directors.
- ● Document Submission and Approval: Our experts will guide you through submitting the required documents and obtaining in-principle approval from the RBI.
- Documents Required for Nidhi Company Registration
- You will need the following documents from all the directors to complete your company registration:
- PAN card (self-attested copy)
- Aadhaar card/Passport/Voter ID/Driver’s license (self-attested copy)
- Bank statement/utility bill (self-attested copy)
- Passport-size photograph
- Specimen signature certificate
- Nidhi Company Registration Fees
Company registration is affordable and transparent. Our experts will guide you through the necessary documentation and fees, ensuring compliance with all regulations. The fees include:
● Government filing fees
● Yearly maintenance costs
● Registration processing fees
Contact us today for a customized quote based on your specific needs and state regulations.
- Key Facts About Nidhi Companies
● Nidhi Companies can be formed without RBI approval, but they must comply with MCA guidelines.
● These companies must be registered as public limited companies.
● The company name must include “Nidhi Limited”.
● Nidhi Companies are allowed to lend and borrow only among their members.
● They can offer locker rental services, but the income from locker rentals cannot exceed 20% of their total income during a financial year.
- Nidhi Company vs. RBI Regulation
Although Mutual Benefit Society are classified as NBFCs, they are not regulated by the Reserve Bank of India (RBI) in the same way as other financial institutions. Instead, they are governed by the Nidhi Rules, 2014, and must meet specific requirements like maintaining a minimum net owned fund (NOF) of ₹10 lakhs and keeping 10% of deposits in term deposits with scheduled commercial banks. They must also submit periodic reports to the RBI for oversight.
- Nidhi (Amendment) Rules, 2023
The Nidhi (Amendment) Rules, 2023, introduced on January 20, 2023, by the Ministry of Corporate Affairs (MCA), revise important forms such as NDH-1, NDH-2, NDH-3, and NDH-4. These updated forms aim to enhance the transparency and operational efficiency of Nidhi Companies.
- Why Choose Global Consultants for Nidhi Company Registration?
- ● Expert Assistance: Our team of legal experts ensures that your Mutual Benefit Society registration process is seamless and fully compliant with all legal requirements.
- ● Simplified Process: We offer a simplified, step-by-step online registration process that minimizes hassle and saves time.
- ● Post-Registration Support: We provide ongoing support to ensure compliance with MCA and RBI regulations after your company is registered.
- ● Affordable Pricing:Transparent and cost-effective pricing plans with no hidden fees.
Companies are regulated by the Ministry of Corporate Affairs (MCA) and must comply with the Nidhi Rules, 2014.
No, the incorporation process can be completed online, and physical presence is not required.
Companies can only provide loans for their members for mutual benefit purposes, such as personal loans or small business loans.
The minimum share capital required is ₹5 lakhs, which must be raised to ₹10 lakhs within a year.
No, Nidhi Companies can only accept deposits and lend money to their members.
To expand, you can increase membership, open branches in different locations after three years of operations, and meet the regulatory requirements.
f a company does not meet the membership or financial requirements after one year, it may face penalties and restrictions on its operations.
Get Started with Global Consultants Today!
Ready to register your Nidhi Company? Fill out the form below, and our team of experts will guide you through the process.