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Nidhi Company Registration in Delhi

A Nidhi Company, often known as a mutual benefit company, that primarily deals with lending and borrowing between its members. The primary objective of a Nidhi Company is to promote the habit of thrift and savings among its members, fostering a sense of financial cooperation.

The word Nidhi means “Treasure”. If you want to start a Nidhi company then Delhi maybe the best place for you. Today, there are many Non-Banking Finance Companies that have become very popular. Nidhi Companies are there to help our savings habits. Institutions like banks, finance companies; Nidhi Companies, etc are there to help us inculcate that habit. In this article we will discuss Starting a Nidhi Company in Delhi.

Introduction of Nidhi Company

A Nidhi company is categorised as an NBFC and registered under Section 406 of the Companies Act, 2013. It is a particular form of entity that was incorporated in accordance with Section 20A of the Companies Act of 1956. A Nidhi Company in Delhi is required to abide by a set of rules. This type of company is created largely to create a saving habit among its members

Along with the ability to save money, it offers its members a few more advantages they can share. These organisations use the deposits they collect for their shareholders or members. To expand its business, the company gives loans or advances and uses the money to buy stocks, bonds, debentures, and other securities issued by the Government. The Ministry of Corporate Affairs oversees the regulation of Nidhi Companies (MCA). Yet, the RBI keeps an eye on all its financial transactions (Reserve Bank of India).

A Nidhi Company must be incorporated as a public limited company and adhere to the guidelines established by the Ministry of Corporate Affairs in order to be registered in India. During one year of incorporation, the Nidhi firm must have a minimum of 200 members

nidhi company registration in jaipur

Documents Required for Incorporation of Nidhi Company in Delhi

  • Address Proof of the Members and Directors (Utility Bill/Telephone Bill/Mobile Bill/Bank Statement not older than two months)
  • Identity Proof of the Member and Directors of the proposed Company;
    (Aadhar /Voter ID/Driving License/Passport)
  • PAN Card of the Member and Directors of the proposed Company
    Passport in case of Foreign Nationals
  • Latest passport size photograph of Member and Directors
  • Business Address Proof
    Owned Property : (Copy of Registry and Latest Govt. Electricity Bill or Water Bill)
    Rented/leased: (Rent Agreement, NOC from the Owner, Latest Govt. Electricity Bill or Water Bill)

Requirements of Nidhi Company in Delhi

  • Minimum one Director shall be Indian resident

  • Digital Signatures of Subscriber and Directors

  • Minimum paid-up equity share capital of Rs.10 lakhs

  • Minimum seven persons as Members

  • Nidhi Company cannot issue Preference shares

  • The time of Incorporation a Nidhi Company should have at least 7 members and 3 members out of these have to be directors of the Nidhi Company

Process of Incorporation of Nidhi Company in Delhi

Step 1: Acquire Director Identification Numbers (DIN) and Digital Signature Certificates (DSC)-a DSC (Digital Signature Certificate comprising of E-signatures) must be there. Furthermore, acquiring a statement from the government is required for the creation of a Nidhi Company.

Step 2: Get MCA approval for the name- The Ministry of Corporate Affairs (MCA) must then approve the proposed Nidhi Company’s name before moving forward. The suggested name must be original and distinct from any other company’s name.

Step 3: Draft the MOA and AOA-The Companies Act of 2013’s standards must be followed while creating the Nidhi Company’s Memorandum of Association (MOA) and Articles of Association (AOA). Although the AOA outlines the guidelines for the management and functioning of the organisation, the MOA outlines the goals and perview of the company.

Step 4: Submit an Incorporation Application-The application for incorporation of the Nidhi Company must then be submitted  with all required supporting documentation, including the MOA, AOA, and PAN cards for the proposed directors as address and identification evidence and proof of identity.

Step 6: Get an incorporation certificate-issue a Certificate of Incorporation (COI) for the Nidhi firm after validating the supporting documentation and approving the application.The Income Tax Agency must issue the Nidhi firm with a Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN)

Advantage of Nidhi Company Registration in Delhi

  • Easy Access to Public Funds:

    Nidhi Company can take deposits from its members through various accounts which is less complex than taking finance from banks and other Financial Institutions.

  • Promotes the savings habit:

    A Nidhi firm is primarily established to encourage the members to practise thrift and saving. It offers a platform for people  their resources and consistently save money.

  • Limited Liability:

    The liability of the Members is limited to the extent of Capital invested by them in the Company , they cannot be held personally liable for it also it is a legal entity.

  • Less Complexity:

    Nidhi Company involves fewer complexions and can be incorporated with an amount of Rupees 10 Lakhs which is to be raised to 20 Lakhs within the business must have a minimum of 200 members in order to be incorporated 

  • Better Credit Co-operative society:

    Nidhi Company has some similarities to the co -operative society and is suitable for the small financers. Once it gets registered it can avail the benefits of credit co-operative society

  • Self-Sustaining Business Model:

    Nidhi businesses use a self-sustaining business model, which means they don’t require outside investment to function. The company receives deposits from its members as its main source of funding 

FAQs on Nidhi Company in Delhi

Q1 How Much Time It Takes For Company Registration In Delhi?

It takes 15 working days for Nidhi Company Registration in Delhi

Q2: What are the benefits of starting a Nidhi Company in Delhir?

Starting a Nidhi Company in Delhi can foster financial inclusion, promote savings, and offer a sense of security to members. It’s a great way to contribute to the community while earning profits.

Q3: Is it mandatory to have a physical registered office for a Nidhi Company?

Yes, as per the regulations, a Nidhi Company must maintain a physical registered office address in India from the day of incorporation.

Q4: Is Nidhi company an NBFC?

Nidhi Company is a non-banking financial business structure. Nidhi Company carries out the functions of lending and borrowing of money within its members where it works through its members only. Nidhi Company is also known as a mutual benefit company.

Q5: How many branches a Nidhi Company can open?

A Nidhi Company can open only 3 branches after earning continuous profits for three years. These three branches can be opened only within the district, to open any branch outside the district, you will require the Regional Director (RD) permission.