NIDHI COMPANY OR SECTION 8 COMPANY

Digital Signature Certificates
Director Identification Number
Certificate of Incorporation
Permanent Account Number
TAN
Memorandum of Association
Articles of Association
Government fees

Documents Required

Only Scanned Copies are needed, Scanned copy of PAN Card of all directors and Aadhar card/ Voter ID/ Passport/ Driving

Pan Card OR Passport Or Election ID Proof

Scanned copy of PAN Card of all directors and Aadhar card/ Voter ID/ Passport/ Driving License

Latest Bank Statement

Latest Bank statement/ Utility bill in the name of director which should not be older than two months

Photo

Latest passport size photograph

Voter ID/Passport/Driver's License

Scanned copy of Any of all these.

Any Utility Bills

Scanned copy of PAN Card of all directors and Aadhar card/ Voter ID/ Passport/ Driving License

Rent Agreement

Scan copy of Rent agreement with NOC from owner

Signature

Scan copy of Signature(Signature must be same as on PAN CARD)

How long does it take?

15-20 DAYS

Mandatory Requirement for Nidhi Company Registration

Minimum 7 shareholders

Minimum 3 Directors

Minimum Capital of Rs. 10 lacs

DIN for all directors

Minimum Requirements After Registration

Minimum number of 200 Members (in 12 Months )

Net owned fund must be Rs. 10 Lakh and above

Unencumbered deposits of not less than 10% of the outstanding deposits

Advantages Of Nidhi Or Section 8 Company

Limited RBI Regulations

Owing to their non-dealing with the funds of any person other than their members, the regulations imposed upon the Nidhi’s by RBI is limited. These companies follow the Nidhi Rules, 2014 issued by the center in respect of the activities and workings of Nidhi Companies.

Limited Capital Requirement

The Ministry of Corporate Affairs has done away with the minimum capital requirement of INR 5 Lakhs for Nidhis. It is only after Nidhi Rules, 2014, that mandated the infusion of INR 10 lakhs for such companies.

Ease of formation

Unlike other NBFCs, Nidhis don’t have to obtain a license from RBI. They just have to incorporate themselves as a public company with the MCA, infuse the required amount of capital as per Nidhi Rules, 2014 and they are all set to go.

The lower rate of credit

The loans given to the members are at a lower rate of interest than the market rate. This brings greater savings to the members.

No outsider intervention

The Nidhi companies are formed by, managed by, and provide benefits to their members only. The outsider is not allowed to intervene in the working of the Nidhis, neither allowed to deposit money or avail credit from these companies.

Compare your options

	Private Limited	Limited Liability Partnership	One Person Company	Partnership Firm	Sole Proprietorship	Public Limited Company
Recommended For	Start-ups and growing companies	Professional services firms	Sole promoters	Home businesses	Small traders and manufacturers	Growth Stage and also for early stage with broad business vision
Ease of Accommodating Investment	Very easy to accommodate	Possible, but unlikely	Possible, but severely unlikely	Almost impossible	Impossible	Very easily
Limited Liability Protection	Yes	Yes	Yes	No	No	Yes
Tax Advantages	Few benefits	Most efficient	Few benefits	Minimal	Minimal	Minimal
Perpetual Existence	Yes	Yes	Yes	No	No	Yes
Statutory Compliances	High	Low	High	Minimal	Minimal	Yes
Shares Listing						Yes

See Our Blogs

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Requirement for Having Director Identification Number

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Is Digital Signatures Certificates are mandatory in case of Company registration?

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What are the liabilities on members for having below minimum membersâ€™ strength?

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Is roll checks are mandatory for Directors inMinistry of Corporate Affairs website

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No need for address in India of Foreign promoters incorporating company in India

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What are the Liabilities of the subscriber in case of One Person Company?

It has been provided that the subscriber/member of OPC may at any time change the name of the nominated person by giving notice to the Registrar. It shall be the duty of the subscriber/member of OPC to intimate the company the change, if any, in the name of the person nominated by him by i... Read More

Can we Change in the nominee by the member of OPC?

Any such change in the name of the nominee person in the Memorandum of Association of the OPC shall not be deemed to be an alteration of the memorandum....

Change in the name of person nominated in the Memorandum shall not be deemed to be alteration in the Memorandum of Association

Can OPC Change in the nominee by the member of OPC?

By the Companies (Amendment) Act, 2015 effective from 29th May, 2015 the requirement of minimum paid up capital for a private limited company of `1 Lakh and for a public limited company of `5 Lakhs has been removed from the definition of the Companies under section 2(68) and 2(71) of the Companies A... Read More

Requirements of minimum paid-up capital

The objective of section 8 of the Companies Act, 2013 is to provide special benefits and privileges to such organisations, which are formed for the following purposes and where it is proved to the satisfaction of the Central Government that a person or an association of persons proposed to be regist... Read More

Main condition for Section 8 Company registration

Section 8(4)(a) provides that a company that has received a licence under the section, shall not alter the provisions of its Memorandum as regards its objects except, with the previous approval of the Central Government [Powers delegated to the Registrar of Companies by Notification No. 1353(E), dat... Read More

Restriction on alteration in the Memorandum and Articles of a charitable company licensed u/s 8

Rule 6 of the Companies (Incorporation) Rules, 2014 as amended vide the Companies (Incorporation) Amendment Rules, 2015, w.e.f. 1-5-2015 provides that where the paid up share capital of an OPC exceeds fifty lakh rupees and its average annual turnover during the relevant period exceeds two crore rupe... Read More

Mandatory Conversion of One Person Company into Private Limited or Public Company

OPC shall be required to convert itself, within six months of the date on which its paid up share capital is increased beyond fifty lakh rupees and the last day of the relevant period during which its average annual turnover exceeds two crore rupees as the case may be, into either a private co... Read More

OPC has to convert into Private or public limited company within 6 months

The Rajya Sabha passed the Companies (Amendment) Bill, 2020 on Tuesday. Union corporate-affairs-minister Corporate Affairs Minister Nirmala Sitharaman moved the Bill for passing in the Upper House today stating that the amendments divided into two compartments are focused on decriminalizatio... Read More

Rajya Sabha passes Companies (Amendment) Bill, 2020

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