A Nidhi Company in India is a type of non-banking financial company (NBFC) that primarily functions to cultivate the habit of thrift and savings among its members. The registration and operations of Nidhi Companies are governed by the Ministry of Corporate Affairs (MCA) and the rules specified under the Companies Act, 2013. Here is a step-by-step guide for Nidhi Company registration:
Step-by-Step Guide for Nidhi Company Registration:
- Prerequisites:
- Ensure that a minimum of three directors and seven shareholders are available. All directors must have a Director Identification Number (DIN).
- Digital Signature Certificate (DSC):
- Obtain Digital Signature Certificates (DSC) for all proposed directors. DSC is mandatory for filing forms online with the Ministry of Corporate Affairs (MCA).
- Director Identification Number (DIN):
- Apply for Director Identification Numbers (DIN) for all proposed directors. DIN is a unique identification number required for directors, and it needs to be obtained before incorporating the company.
- Name Approval:
- Choose a unique name for the Nidhi Company and apply for name approval through the RUN (Reserve Unique Name) service provided by the MCA. Ensure that the name complies with the guidelines specified for Nidhi Companies.
- Drafting Memorandum and Articles of Association:
- Draft the Memorandum of Association (MOA) and Articles of Association (AOA) of the Nidhi Company. These documents should outline the objectives and rules of the company, including the terms of acceptance and repayment of deposits.
- Incorporation Application:
- Prepare the incorporation application in Form INC-32 along with the MOA and AOA. Additionally, file Form INC-33 and Form INC-34, which are e-Memorandum of Association (e-MOA) and e-Articles of Association (e-AOA) respectively.
- Declaration and Affidavit:
- The directors need to submit a declaration in Form INC-8 stating that all requirements of the Nidhi Rules, 2014, have been complied with, and an affidavit in Form INC-9 declaring that they have not been convicted of an offense dealing with financial fraud.
- Certificate of Incorporation:
- Upon approval, the Registrar of Companies (RoC) will issue a Certificate of Incorporation. This certificate is conclusive evidence of the formation of the Nidhi Company.
- PAN and TAN Application:
- Apply for a Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) for the Nidhi Company. These are essential for tax-related compliance.
- Opening Bank Account:
- Open a bank account in the name of the Nidhi Company. Provide the Certificate of Incorporation, PAN, and other required documents to the bank.
- Post-Incorporation Compliance:
- Fulfill post-incorporation compliance, such as conducting the first board meeting, appointing auditors, and maintaining statutory records.
- Nidhi Status:
- Apply for recognition as a Nidhi Company within one year from the commencement of business. This involves meeting the minimum capital requirement and other conditions specified under the Nidhi Rules.
Conclusion:
Congratulations! You have successfully registered your Nidhi Company. Ensure ongoing compliance with regulatory requirements, and consider seeking professional advice for any specific legal or operational considerations.
Please note that the process outlined here is a general guide, and it’s recommended to consult with legal professionals or corporate service providers for precise and updated information based on your unique circumstances and the latest regulatory changes.