Nidhi Company Registration Procedure

A Nidhi Company – is a company recognized under section 620A of the Indian Company Act, 1956 as part of the non-banking Indian finance sector. Borrowing and lending money between members is their main business. Permanent Funds, Benefit Funds, Mutual Benefit Funds, and Mutual Benefit Company are all terms used to describe these types of funds. The Ministry of Corporate Affairs is responsible for regulating it. In topics relating to their deposit acceptance activities, the Reserve Bank of India has the authority to give directions. However, these Nidhis solely interact with their shareholders.

Documents Required for Nidhi Company Registration

• ID proof of all the Partners – Voter ID or DL or Passport.
• One Partnership Deed between the partners which shows the share of each partner.
• One electricity bill or water bill for office premises.
• NOC from the landlord of the premises.

The first step in forming a Nidhi Company in India is to form a Limited Company under the Companies Act of 2013. To begin the Limited Company incorporation process, a minimum of three Directors and seven shareholders will be required. During the incorporation of the Nidhi firm, care must be taken to guarantee that the Limited Company’s aim, as stated in the Memorandum of Association, is to encourage thrift and saves among its members by accepting deposits from and lending to them only for their mutual benefit.