Nidhi Registration in Hyderabad

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What is Nidhi company
A Nidhi Company is a type of non-banking financial company (NBFC) that is formed to cultivate the habit of savings among its members and to lend funds to its members only. It is
also known as a Mutual Benefit Company or a Permanent Fund. The word "Nidhi" means "treasure" in Sanskrit, and the primary objective of a Nidhi Company is to encourage thrift and savings among its members. The members of a Nidhi Company can be individuals or associations, and they contribute to the common pool of funds of the company. The company then uses these funds to provide loans and advances to its members at reasonable rates of interest. Nidhi Companies are regulated by the Ministry of Corporate Affairs (MCA) and aregoverned by the Nidhi Rules, 2014. These rules prescribe the minimum requirements for the registration, operation, and management of Nidhi Companies.Nidhi Companies are not allowed to engage in any other business apart from borrowing andlending activities among their members. They are also prohibited from accepting deposits from the public, which sets them apart from other types of NBFCs.

Documents that are needed for Nidhi company registration in Hyderabad

1. Identity proof: Identity proof such as PAN card, passport, voter ID card, driving
license, or Aadhaar card is required for all the directors and shareholders of the
company.
2. Address proof: Address proof such as passport, voter ID card, driving license,
Aadhaar card, or utility bills like electricity bill, telephone bill, or bank statement is
required for all the directors and shareholders of the company.
3. Passport-sized photographs: Recent passport-sized photographs of all the directors
and shareholders of the company are required.
4. Registered office proof: Documents such as rent agreement, lease deed, or property
tax receipt that show proof of ownership or occupancy of the registered office of the
company is required.
5. Memorandum of Association (MoA) and Articles of Association (AoA): These
documents define the objectives, powers, and regulations of the company.
6. Nidhi Company declaration: The directors of the company need to sign a declaration
stating that the company will comply with the provisions of the Nidhi Rules, 2014.
7. Board resolution: A board resolution needs to be passed by the directors of the
company approving the incorporation of the company.
8. Application for DIN and DSC: Application for Director Identification Number (DIN)
and Digital Signature Certificate (DSC) need to be submitted for all the directors of
the company.

Registration process of Nidhi company in Hyderabad  

1. Obtain Digital Signature Certificate (DSC): The directors of the company need to
obtain a digital signature certificate for filing the registration documents online.
2. Obtain Director Identification Number (DIN): The directors of the company need to
obtain a Director Identification Number (DIN) by filing the DIN application form
online.

3. Name Reservation: The company needs to reserve a unique name for itself through
the RUN (Reserve Unique Name) form on the MCA (Ministry of Corporate Affairs)
website.
4. Incorporation: The company needs to file the incorporation documents including the
Memorandum of Association (MoA) and Articles of Association (AoA) through the
SPICe form on the MCA website.
5. PAN and TAN Application: The company needs to apply for a Permanent Account
Number (PAN) and Tax Deduction and Collection Account Number (TAN).
6. Bank Account: The company can open a bank account in the name of the Nidhi
company.
7. Commencement of Business: After the bank account is opened, the company needs to
file the commencement of business form with the Registrar of Companies (RoC).
Benefits of Nidhi company registration in Hyderabad
Here are some benefits of Nidhi company registration:
Easy to Incorporate: The process of incorporating a Nidhi company is easy and forthright compared to
other types of NBFCs, which makes it an attractive option for entrepreneurs looking to start a small
finance business.
Low Cost of Operation: Nidhi companies have lesser operating charges as compared to
traditional financial institutions, as they do not have to follow the same severe regulatory
requirements.
Better Interest Rates: Nidhi companies offer better interest rates to their members as compared to
traditional banks, which makes them a striking choice for those looking to borrow money at a lower rate
Limited Liability: Nidhi company registration provides limited liability protection to its members, which
means that their personal assets are protected in case of any legal or financial problems faced by the
corporation.
Self-Financing: Nidhi companies rely on their members for funding, which means that they
can be independent and do not have to rely on outer sources for capital.