Register Nidhi Company (Mutual Benefit) India
Rs. 23271/- (inclusive of all taxes & fees)
- Nidhi Company Registration in 20 days
- After Company Formation Compliance Support by experts
- Work Handled by Top Nidhi Experts
Nidhi Company RegistrationKnow what is Nidhi Company and how it is registered.
What is a Nidhi Company?
A Nidhi Company is a public limited company which is formed with a sole purpose of accepting deposit and lending money only to its members. It is also an Non Banking Financial Company (NBFC) which has been exempted from the provisions of RBI.
How to register Nidhi Company in India?
Registering a Nidhi Company is a big thing because it something which no ordinary person can start. Starting with Nidhi can gradually upgrades you to NBFC and later on to Bank. Three broad heads for registration are as follows:
- Prepare DSC and DIN: The first step is to prepare Digital Signatures (DSC) and Director Identification Number (DIN). Further, make sure to apply DSC for subscribers as well to complete the procedure under the form SPIC and to e-file eMOA.
- File for Name Approval: After applying for DSC and DIN, the next step is to file for Name Approval. One can file for Name approval under Form INC 1 or one can file with incorporation under Spice Form.
- File for Incorporation: Once your name is approved, you can file for incorporation through Spice Registration forms.
Documents required for Nidhi Company RegistrationFor Directors/Shareholders:-
For Registered Office:-
- Copy of PAN Card
- Aadhar Card
- Address Proof (Bank Statement, Mobile bill, Telephone bill)
- Passport Size Photo
- Ownership Proof (Electricity bill etc)
- Utility Bill (Gas bill, Electricity bill)
- NOC (Download format)
Time & Cost for Nidhi Company Registration
The Total Cost Breakup
|.Digital Signature Certificate (DSC)||7||3,400|
|.Director Identification Number (DIN)||3||1,600|
|.MOA, AOA and Incorporation Fee||-||Nil|
|.Stamp Duty of the Respective State*||-||1,800/-|
|.PAN and Tan Application||-||200/-|
|.Professional Fee (Inclusive of Taxes)||-||12,171/-|
|. Goods and Service Tax (GST)||-||2,000|
Total Nidhi Company Registration Cost in India. 23271/-
Note: Stamp duty Extra for States: Punjab, Kerala and Madhya Pradesh.
Can Nidhi Company do Microfinance Loans?
Nidhi Companies are not allowed to do a Microfinance in India. This has been specifically restricted to Non-Banking Financial Companies (NBFC) with a minimum net owned fund of Rs. 5 Crore.
Nidhi Company is not allowed to provide unsecured loans to its members. Nidhi Company can only lend a secured loan to its members.
Nidhi companies can advance loan only towards the following securities:
- This is one of the main streams of business for Nidhi Companies. Gold loan by Nidhi Companies are very popular and are subject to certain rules and regulation as per Nidhi Rules, 2014. Here are the following conditions:
The maximum finance against the gold shall be up to 80%.
The maximum repayment period shall be 12 months.
The rate of interest shall not exceed 7.5% plus the maximum rate of interest on gold loan.
A Nidhi Company can advance maximum loan of 200,000 if deposits does not exceed Rs. 2 Crore.
Loan against immovable Property:
- This type of loan is not very popular with Nidhi Company. This loan is also subject to certain conditions:
The maximum loan can be rs. 200,000 if deposits does not exceed Rs.2 Crore.
The repayment period of loan shall not exceed 60 months.
The maximum finance can be up to 50%.
Further, this type of loan cannot exceed 50% of the total loan amount.
Loan against FDR and Deposits:
- Nidhi can advance loan against FDR and also even against the deposits kept by it. Further, this type of loan is also subject to certain restrictions:
The repayment period under this loan shall not exceed the period of Fixed Deposit.
The maximum finance under this case shall be up to the value of Fixed Deposit under Nidhi Company.
Loan Against NSC / Bonds:This type of loan are very rare but Nidhi company can advance loan against these securities as well.
Unsecured loan by Nidhi Company:This type of loan is completely prohibited by Nidhi Company.
Vehicle (Car Loan) Finance:This type of loan is also not allowed under Nidhi Company. Vehicle finance restricted to Non-Banking Financial Companies (NBFC) in India.