A company registered under the companies act 2013, with a sole objective of carefully budgeting money is known as a Nidhi Company. It takes money deposits from its member to lend it to its members. Thus, the funds collected or owned by a Nidhi company are for its members and are used by them only.
Nidhi company is a class of NBFCs and RBI and is empowered to issue directions to them in matters relating to their deposit acceptance activities. However, in recognition of the fact that these Nidhis deal with their shareholder-members only, RBI has exempted the notified Nidhis from the core provisions of the RBI Act and other directions applicable to NBFCs. Therefore, Nidhi Company is an ideal entity to take the deposit from and lend to a specific group of people.
Being a separate legal entity in the eyes of law, a Nidhi company has a wide legal capacity and can own property and incur debts. The members (Directors) of a Nidhi company have no liability to the creditors of a company for such debts.
Being a separate entity, the company can acquire, own, enjoy and alienate, property in its own name. No shareholder can make any claim upon the property of the company so long as the company is a going concern.
A Nidhi company enjoys better credibility when compared to Mutual Benefit Organizations. Nidhi companies are registered and monitored by the Central Government. Mutual Benefits Organization is on the other hand governed and monitored by State Governments.
The Board of Management of a Nidhi Company that controls the activities of the Nidhi Company can be easily changed by filing simple forms with the Registrar of Companies.
A Nidhi Company is everlasting firm till it is legally dissolved. It is not affected by the death or departure of any of the partners. It continues to be in existence irrespective of the changes in membership.
PAN Card of shareholders and Directors. Foreign nationals must provide a notarised copy of valid passport.
Passport, Driver’s License, Aadhar and Latest Telephone Bill /Electricity Bill/ Bank Account Statement of Shareholders and Directors. The required documents must not be 2 months old.
Business Address Proof
Rental Agreement or Sale Deed and Latest Electricity Bill/ Telephone Bill, Property Tax Receipts of the registered office address.
NOC from owner
No Objection Certificate to be obtained from the owner(s) of registered office
Signed Incorporation Documents
Signed Digital Signature Application Documents in Hard Copy. Other Incorporation Documents signed and uploaded as soft copy.
In case of NRI or Foreign National, documents of the partner must be notarized or apostilled.