NIDHI Company Registration Process

NIDHI companies are non-banking financial companies (NBFCs) that are created with the purpose of cultivating the habit of thrift and savings among its members. These companies are registered under Section 406 of the Companies Act, 2013 and are regulated by the Ministry of Corporate Affairs (MCA) in India.

Here are the steps to set up and operate a NIDHI company in India:

1. Incorporation: The first step is to incorporate a company under the Companies Act, 2013. The company must have a minimum of three directors and seven shareholders to register.

2. Memorandum and Articles of Association: The Memorandum of Association (MOA) and Articles of Association (AOA) must be drafted and filed with the Registrar of Companies (RoC).

3. Minimum Capital Requirement: The minimum capital requirement for a NIDHI company is Rs. 5 lakhs.

4. Registration: The company must register with the MCA and obtain a certificate of registration.

5. Compliances: A NIDHI company must comply with various regulations, including filing of annual returns, maintaining of books of accounts, conducting an annual general meeting, and other legal requirements as per the Companies Act, 2013.

6. Business Activities: A NIDHI company can accept deposits from its members and lend to its members only. It cannot engage in any other business activity.

7. Branches: A NIDHI company can open branches in the same state only after it has earned a net profit for three consecutive years and has complied with all the regulatory requirements.

In conclusion, setting up and operating a NIDHI company in India requires compliance with various legal and regulatory requirements. It is advisable to consult with a legal expert to ensure that all the formalities are fulfilled in a timely and appropriate manner.