Nidhi Company Registration: Fees, Documents & Procedure

01 August 2023

Nidhi Company is a type of non-banking financial company (NBFC) that is recognized under Section 406 of the Companies Act, 2013 in India. The idea behind setting up this type of company is to promote the habit of thrift and savings among its members and to lend money to its members at a reasonable rate of interest. It clearly is an effort to support industries and entrepreneurs with the best option to avail loans for its members and save money.

According to the Ministry of Corporate Affairs, as of March 2021, there were 4,266 registered Nidhi Companies in India. The state with the highest number of registered Nidhi Companies was Tamil Nadu, followed by Maharashtra and Karnataka.

In this article, we will discuss the fees, documents, and procedure for this company registration in India. Let's start with the fee structure to register this type of entity.

Fees for Nidhi Company Registration

The fees for Nidhi Company Registration may vary depending on the authorized capital of the company. As of April 2022, the fees for Nidhi Company Registration in India are as follows:

• For enterprise having an authorized capital of up to Rs. 1 lakh: Rs. 4,000
• For companies having an authorized capital of more than Rs. 1 lakh up to Rs. 5 lakhs: Rs. 4,000 + Rs. 200 for every Rs. 10,000 of authorized capital or part thereof
• For entities having an authorized capital of more than Rs. 5 lakhs up to Rs. 10 lakhs: Rs. 24,000 + Rs. 100 for every Rs. 10,000 of authorized capital or part thereof
• For businesses having an authorized capital of more than Rs. 10 lakhs: Rs. 34,000 + Rs. 50 for every Rs. 10,000 of authorized capital or part thereof

Supporting Documents Requirement

For those who are intended to invest in this company, determining the documents required is a must. Here below, you can check the supporting documents for easing its registration procedure.

The following documents are required for its registration in India:

• Identity proof of the directors and shareholders: Aadhaar Card, Voter ID Card, Driving License, or Passport.
• Address proof of the directors and shareholders: Bank Statement, Electricity Bill, Telephone Bill, or Property Tax Receipt.
• PAN Card of the directors and shareholders.
• Passport-sized photographs of the directors and shareholders.
• Registered Office Address proof: Ownership proof, Rental Agreement or Lease Agreement along with the latest Electricity Bill or Property Tax Receipt.
• NOC from the landlord (if the office premises are rented).
• Memorandum of Association (MOA) and Articles of Association (AOA) of the company.

Considering that you all know about its documentation now, let's discover the procedure for its registration.

Step-by-Step Procedure for Nidhi Company Registration

The following steps are involved in the procedure for Nidhi Company Registration in India:

Step 1: Obtain Digital Signature Certificate (DSC) and Director Identification Number (DIN) for the proposed directors of the company.

Step 2: Reserve a unique name for the Nidhi Company through the Ministry of Corporate Affairs (MCA) website. You can check if any other pre-registered name coincides with your suggested company name.

Step 3: Draft and file the Memorandum of Association (MOA) and Articles of Association (AOA) of the company with the Registrar of Companies (ROC).

Step 4: Apply for Nidhi Company registration with the ROC along with the necessary documents and fees.

Step 5: Obtain the Certificate of Incorporation from the ROC after the verification of documents and approval of the application.

Step 6: Apply for a Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) for the Nidhi Company.

It is significant that the documents required for this company registration, as mentioned previously, should be uploaded in the required format on the MCA portal. The fees for this company registration can also be paid online through the MCA portal using net banking, credit card, or debit card.

The applicant or owner can follow the online process of registering this entity, which is convenient and time-saving. It eliminates the need for the physical submission of documents and enables the tracking of application status in real time. However, it is advisable to seek professional guidance and assistance to ensure compliance with all legal requirements and smooth registration of the Nidhi Company.

Processing Time

The entire process of this company registration in India usually takes around 15-20 working days. However, it is subject to government processing time and other factors.

In the nutshell, the procedure of its registration can be completed online and with the support of a business and compliance consultant in Delhi. Its registration is a straightforward process that requires a few necessary documents and fees. But, it turns smoother and effortless if you have a consultant with you to guide throughout.