What Legal Documentation is required for Registration of a Nidhi company

Posted by Fin-Fired Nidhi Software on December 4th, 2018

Nidhi Company is a kind of Non Banking Finance Company which can work as a bank (with some limitations) and does not need any license from Reserve Bank of India. The main limitation is that Nidhi Company cannot deal with people who are not its members. The process involved in formation and registration of Nidhi Company is quite simple. Just as a bank, Nidhi company can open various deposits such as MIS. RD, saving accounts, etc. In this guide we will throw some more light on the registration process in more detail.

Process involved in Nidhi Company registration

The process for registration of Nidhi Company is really simple. It can also be carried out by authorized legal agencies. Let us have a step-by-step look at the process.

1. Filling required forms

Applicants need to fill a form that has a questionnaire. The required forms to be filled include Form INC 9 and Form DIR 2. Once you have provided all the required information in the form, you need to submit it with the required documents.

2. Obtain DIN and DSC

Once the form is filled and documents are validated, you will get Director Identification Number (DIN) and Digital Signature Certificate (DSC). You will get DIN and DSC for all the directors. Minimum 3 directors are required.

3. Name approval and verification

All the information provided by you is verified and the name of the company is approved. The name of the company should have “Nidhi Limited” at the end. Hence the name of your Nidhi company is approved as a Private Limited Company.

4. Filing COI - COI stands for Conflict of Interest. Applicant has to file this in Form DIR 12, INC 7 and INC 22.
5. Submitting the details of all  the members - The Nidhi company should have at least 200 members to be eligible to apply for registration. All the details of the members has to be submitted (under MCA/ROC) to the Nidhi Board.

Documents required for Nidhi Company Registration

Submitting following documents is mandatory in order to get a Nidhi company registered:

• A rent/lease agreement or Ownership documents has to be provided. It serves as a proof of address of the registered place used for business.
• A NOC (No Objection Certificate) that is duly signed by the landlord or the owner of the registered place to be used for the business
• Photographs, Address proofs and Identity proofs of the members of the company
• PAN Card copies of all the members
• Digital Signature Certificate (DSC) of the company
• Director Identification Numbers (DIN) of all the directors
• Certified copy of the updated Articles of Association (AoA) and Memorandum of Association (MoA) of the company

Nidhi Company Management software

Though Nidhi Company works only for its members, but it performs large number of banking activities such as depositing and lending money. It needs to manage all the details about the members, daily transactions, employees information, payroll and loot more. It is not possible to manage all these processes manually. So it is very important to go a Nidhi Company Software to streamline all the processes and enhance the productivity of Nidhi company. Nidhi company works on various deposits such as FD or RD accounts and various other MIS activities.

In order to manage all this you need not to go for individual tools such as RD FD software or MIS software. Instead you should go for Nidhi software, that can perform all the operations required to manage RD, FD accounts or MIS processes. Various other process managed by Nidhi company software are document verification, loan management, member registration, share management, generating reports, branch management and lot more.

Before finalizing the Nidhi company software for your Nidhi company, you should do a proper market research. You should search for a Nidhi software that is designed to suit your requirements and offers a great user experience. Pixyrs Softech offers highly customized Nidhi company software. It offers a highly functional Nidhi software and has kept the Nidhi Company Software Price as lowest and affordable.

Summary

Nidhi Company performs all the banking activities and processes. You need to follow a certain process to get Nidhi company registered. Also, you should get a good Nidhi company software to manage all the processes efficiently.