Nidhi (NBFC) Company Registration in Kolkata, West Bengal

Nidhi Company is one of the types of Non-Banking Financial Company (NBFC) that is not regulated by Reserve Bank of India (RBI). The Nidhi Company is cost effective to register and easy to operate as compare to NBFC regulated by RBI. Therefore, this is the main reason as to why the Nidhi Company is so famous.

Click here to learn about: Nidhi Company Registration Procedure.

Let us discuss the requirements for registering a Nidhi Company in India. But, before that, we can classify the requirements in to two parts –

  1. Requirements before registration of Nidhi Company
  2. Requirements after registration of Nidhi Company

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Requirements before registration of Nidhi Company

Nidhi Company is incorporated in the nature of Public Limited Company. Hence, all requirements for the Public limited company will be applicable. There is also a myth in the industry that a Nidhi Limited Company is first incorporated as a Public Limited company, and then registration of Nidhi is initiated.

However, the above statement does not hold truth. Nidhi Company is registered from the beginning as a Nidhi limited. There is no separate approval process except further compliance.

Here is the list of requirements for a Nidhi limited company:

  1. Minimum Seven Members: Nidhi Company can be started with seven members. Out of which 3 are also to be appointed as directors including a female director. These members can be your relatives.

Also, there is no educational qualification required for any of any member.

  1. Documents Required: Documents required can be further classified into two subheads: Documents of Members and Registered Office.

Documents required for Members are as under:

  • PAN Card
  • Identity Proof – (Voter ID, Passport, Aadhaar Card, DL etc)
  • Current Address Proof – (Bank Statement/Passbook, Electricity Bill, Telephone Bill, Mobile Bill – Any One (Should not be older than two months)
  • Passport Size Photograph

Documents required for Registered Office are as under:

  • If premises are on rent: Rent Agreement + Utility bill + Signed NOC
  • If Premises are owned: Ownership Proof + Utility Bill + Signed NOC

Note: NOC stands for No Objection Certificate: We will provide the format, you just need to sign on plain paper.

Electricity bill, Gas bill, Telephone Bill, Water Bill are served as utility bill for registered office.

  1. No Minimum Capital Requirement: This requirement has been officially waived off by the Ministry of Corporate Affairs (MCA). Earlier, it was used to be INR 5 lakh, but now you can register Nidhi Company with any amount of capital of your choice.

However, we recommend you to start the company with INR 10 lakh, because of Rule 5 of Nidhi Rules, 2014, which mandates you to have INR 10 lakh owned fund invested into the . So, it is recommended to start the Nidhi Company with INR 10 lakh capital.

Hiring a Correct Professional: Hiring an expert professional (CA or CS) is your important decision. Please, do proper research before hiring them. On Internet, you may find many eye-catching ad and fake website offering ‘Nidhi Company Incorporation’ service at lower fee. If you do not find right expert nearby then simply book an appointment with Ozg expert at ozgcenter.com/apppointment for guaranteed services with 100 percent Ozg Assurance and many successful references.

Email: ask@mutualbenefit.co.in

Requirements after registration of Nidhi Company

Now, we are into the section of requirements which are required to be complied within one year of Incorporation. These requirements are very much important. Otherwise, the company will be at default. The requirements are as follows:

Not Less than 200 Members: After incorporation, a Nidhi company must add at least 200 members to comply with this requirement of law. Further, it has to maintain this during the course of time. If the total members falls less than 200 at anytime thereafter, it will leave the company at default.

However, your company is not able to maintain the limit of 200 members, then you must apply for an of time within 30 days of closure of financial year in Form NDH-2 with Regional Director.

Net Owned Funds of 10 lakh or more: In a layman language, Net owned funds means amount invested into the business. As already stated, this requirement can be fulfilled by registering the company at INR 10 lakh capital.

Acceptance of deposits by Nidhi Company and Net owned funds.

(1) A Nidhi shall not accept deposits exceeding twenty times of its Net Owned Funds (NOF) as per its last audited financial statements.

(2) In the case of companies covered under clauses (a) and (b) of rule 2and existing on or before 26th July, 2001 and which have accepted deposits in excess of the aforesaid limits, the same shall be restored to the prescribed limit by increasing the Net Owned Funds position or alternatively by reducing the deposit according to the table given below:

Ratio of Net Owned Funds to Deposits (as on 31.3. 2013) Date by which the company has to achieve prescribed ceiling of 1:20
a) More than 1:20 but upto 1:35 By 31.3. 2015
b) More than 1:35 but upto 1:45 By 31.3. 2016
c) More than 1:45 By 31.3. 2017

(3) The companies which are covered under the Table in sub-rule (2)above shall not accept fresh deposits or renew existing deposits if such acceptance or renewal leads to violation of the prescribed ratio.

(4) The ratio specified in sub-rule (2) above shall also apply to incremental deposits.

Ozg Nidhi / Mutual Benefit Co. Experts

Ozg Business Resource Center

www.nidhicompany.com

Email: ask@mutualbenefit.co.in

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