Nidhi Company is a type of company which is incorporated with the end view of inculcating the habit of saving among the members or shareholders of the company. Any Nidhi Company can only lend or take a deposit from its members only and that too for their mutual benefit. Nidhi Companies are known as mutual benefit societies because they solely take the deposit from its members only.
According to the dictionary meaning of "Nidhi", it means treasure, but in the financial sector, it is a mutual benefit society which is notified by the central government as a Nidhi Company. Nidhi companies are known by their different names such as Nidhi permanent fund, mutual benefit company and mutual benefit funds.
Nidhi Company is recognised under section 406 of companies' act 2013, and the other regulating body for any Nidhi Company registered under the Companies act 2013 is Ministry of Corporate Affairs (MCA). Reserve Bank of India has the power to issue direction regarding the depository function of Nidhi Company. This type of company is also an NBFC company if the definition of financial Institution is considered then Nidhi Company comes under the ambit of section 45-I of RBI act.
Copy of PAN card with the directors and shareholders, who are Indian Nationals, if the shareholders or the directors are Foreign Nationals in that case, notarised Passport of the respective directors or shareholders.
Rent agreement or sale deed copy of electricity bill, property tax receipt. No objection certificate (NOC) from the landlord for use of premises as the registered office.
Signed digital signature application documents and incorporation documents signed and uploaded as soft copy.
Incorporation of Nidhi Company is similar to that of Public Limited Company registration. The process of registration takes up to 45 days.
The registration process of Nidhi Company involves the following steps: