One of the famous type of entity to borrow and lend money within members in India. Section 406 of the Companies Act, 2013, deals with the process of Nidhi Company Registration. Nidhi Company refers to the type of NBFC NBFC (Non-Banking Financial Corporation) regulated by Company Act 2013. The structure of Nidhi company deals with the deposits from and loans to its members, i.e., shareholders only, and just for the mutual benefits of its members.

Nidhi Company activities falls under the ambit of RBI (Reserve Bank of India), as it is similar to that of an NBFC. However, RBI has excused this Company from the core provisions of the RBI Act, 1934.

Minimum of 7 shareholders or members

Minimum of 3 Directors

Minimum of Rs 5 Lakhs needed as the capital

1) Permanent Account Number (PAN) Card

2) Aadhaar Card / Passport / Driving License / Voter Identity Card

3) 7/12 Extract or Farmer Certificate duly Signed and Stamp by Taluka Tahsil Officer

1) Telephone Bill / Mobile Bill

2) Electricity Bill / Water Bill

3) Bank Statement /Bank Passbook with latest transaction (Any one of the Document not older than 2 months)

1) Email ID

2) Mobile No

3) Educational Qualification

4) Place of Birth

5) Recent Photograph (Color Copy)

1) No-Objection letter from the Owner of Address to use the address of the registered office of the Company.

2) Address Proof – In the name of the Owner

Electricity Bill, Telephone Bill (Fixed Line Only), Gas Bill or Water Bill (Not older than 2 months);- To be signed by the of the Owner of Premises

OR

Tax Paid Receipt or Copy of Registered Sale Deed- To be signed by the Shared Office Service provider.

RUN (Reserve Unique Name) form is filled for the reservation of the name along with Object of the Company. The name provided must be as per the rule 8 of Company Registration Act, 2013.

It is required to obtain Digital Signature Certificates of all Directors and Shareholders to sign the Incorporation forms.

Once the name approved Spice Form Part-B is required to be prepared alogn with certain declarations

Drafting of MOA, AOA and AGILEPRO form required to prepared to obtain other registrations like ESI, EPF, PTRC/PTEC (Professional Tax) and GST which now compulsory in case Private Limited Company.

Declaration by Subscribers and First Directors are required to be prapared which was offline form earlier. Now INC-9 is to be submitted by attaching DSC of all Subscribers and First Directors.

Once all forms are prepared, Submission is SPICE Part-B, MOA, AOA, AGILEPRO and INC-9 are to be required. By filing requisute forms and payment of fees the forms will be processed by CRC team Delhi.

Once the SPICE Part-B, MOA, AOA, AGILEPRO and INC-9 is approved, the registrar provides the Company Identification Number (CIN) along with PAN and TAN of the company. Other certificates like ESI, EPF, PTRC/PTEC (Professional Tax) and GST will be issued in due course of time. 

Pursuant to section 139, the first auditor of the company, (who is Chartered Accountant), shall be appointed by the Board of Directors within thirty days (30 days) from the date of registration of the company. Such auditor shall hold office till the conclusion of the First Annual General Meeting.

 

Pursuant to section 184, every Director shall, at the First Board Meeting of the Company and at each such First Board Meeting held in a financial year, discloses to the Board his interest in other entities. The Board shall take note of the same.

To open a bank account, as per the bank’s policy, you may need to submit the PAN and Certificate of Incorporation along with the documents required.

Pursuant to section 56, every company shall, deliver the certificates of all securities allotted (after paying requisite Stamp Duty), transferred or transmitted within a period of two months (2 months) from the date of incorporation, in the case of subscribers to the memorandum.

Therefore it is mandatory to open a Bank account and after opening of company’s Bank Account, each subscriber to the memorandum of association should deposit the amount of subscription money of the shares agreed to be taken by him from their respective account in the company’s Bank account by individual cheque or online.

This compliance is newly added by MCA. Every company before starting its business or exercising its borrowing powers must file form INC-20 A for the declaration of commencement of business. This form is to be filed within 180 days from the date of incorporation of the company. It is applicable to all companies having a share capital and which is incorporated on or after 2nd November 2018. There are strict consequences of non-filing of this form which are as under:

· Late filing fees levied by MCA, if a form is not filed in 180 days of incorporation

· A Penalty of Rs.50,000/- to the company

· A Penalty of Rs.1000/- per day to the director

· MCA may remove the name of the company from the register of companies.

If the company has not provided an address for the registered office during the registration process, the company must inform the Registrar about it. The intimation of the address must be filed within 30 days from registration and in e-form INC – 22.

A. paint or affix its name, and the address of its registered office, and keep the same painted or affixed, on the outside of every office or place in which its business is carried on, in a conspicuous position, in legible letters, and of the characters employed therefore are not those of the language or of one of the languages in general use in that locality, also in the characters of that language or of one of those languages;

B. get its name, address of its registered office and the Corporate Identity Number along with telephone number, fax number, if any, e-mail and website addresses, if any, printed in all its business letters, billheads, letter papers and in all its notices and other official publications;

A. Common Seal (Optional)

B. Statutory Register (Mandatory)

C. 2 rubber stamps - One round stamp in the name of company and another for the Director)