Nidhi Company: Empowering Small Savings and Mutual Growth
โAt Pcachary.n, operating under the GST Suvidha Center umbrella (Branch Code: WB 093), we recognize that the backbone of the Indian economy is the culture of thrift and mutual trust. For entrepreneurs looking to enter the financial sector without the heavy regulatory burden of a full-scale NBFC, a Nidhi Company is the most viable and prestigious gateway.
โA Nidhi Company is a type of Non-Banking Financial Company (NBFC) that is formed to cultivate the habit of savings among its members. It works on the principle of mutual benefitโcollecting deposits from members and lending to them at reasonable rates.
โWhy Choose a Nidhi Company? (The Strategic Advantage)
โUnlike traditional banks or large NBFCs, Nidhi Companies are governed by the Nidhi Rules, 2014, and Section 406 of the Companies Act, 2013. Here is why they are the preferred choice for local financiers:
- โNo RBI License Required: You do not need the rigorous and expensive RBI approval to start operations.
- โEase of Formation: With just 7 members and minimal documentation, your financial institution can be up and running.
- โLow Capital Requirement: While other NBFCs require crores in capital, a Nidhi Company can be started with a significantly lower investment (minimum โน10 Lakhs as per updated 2022 rules).
- โMutual Trust: Since you only deal with members, the risk of bad debts (NPAs) is significantly lower than in open-market lending.
โNidhi Company Registration Process
โNavigating the legalities of the Ministry of Corporate Affairs (MCA) can be daunting. Our team at GST Suvidha Center (Kolkata/Budge Budge) simplifies this into a streamlined journey:
โ1. Pre-Registration Requirements
- โMinimum 7 Members: At least 3 of these must serve as Directors.
- โMinimum Capital: A minimum paid-up equity share capital of โน10,00,000 is required.
- โDigital Signatures (DSC): All directors must obtain a DSC for secure online filing.
โ2. Name Approval (RUN)
โThe company name must be unique and must end with the suffix “Nidhi Limited”. We handle the “Reserve Unique Name” (RUN) application to ensure your brand identity is secured.
โ3. Documentation & SPICe+ Filing
โWe prepare the Memorandum of Association (MOA) and Articles of Association (AOA), ensuring the objects strictly adhere to Nidhi activities (borrowing and lending only among members). We then file the SPICe+ form for incorporation.
โPost-Incorporation Compliance: The First Year
โOnce incorporated, a Nidhi Company must meet specific milestones within the first year to maintain its legal status:
| Requirement | Threshold |
|---|---|
| Minimum Membership | At least 200 members within 1 year. |
| Net Owned Funds (NOF) | Must be โน20 Lakhs or more (as per 2022 amendments). |
| NOF to Deposit Ratio | Should not exceed 1:20 (i.e., for every โน1 of your own, you can take โน20 in deposits). |
| Unencumbered Deposits | At least 10% of outstanding deposits must be kept in a scheduled bank. |
Annual & Periodic Compliances Checklist
โOperating a Nidhi Company requires meticulous record-keeping. Pcachary.n provides end-to-end support for the following mandatory filings:
โStatutory Returns
- โForm NDH-1: Return of Statutory Compliances (to be filed within 90 days of the close of the financial year).
- โForm NDH-2: Application for extension of time (if 200 members or the 1:20 ratio is not met).
- โForm NDH-3: Half-yearly return to ensure the company is following all Nidhi rules.
- โForm NDH-4: Application for declaration as a Nidhi Company (MANDATORY post-incorporation to be legally recognized).
โFinancial Filings
- โAOC-4: Filing of financial statements (Balance Sheet and P&L).
- โMGT-7: Filing of the Annual Return.
- โITR-6: Annual Income Tax Return for the company.
โEvent-Based Compliances
โOur expert backend team of 170+ members also manages:
- โChange in Directors or Registered Office.
- โIncreasing Authorized Capital.
- โAllotment of Shares to new members.
โRestricted Activities (What a Nidhi CANNOT Do)
โTo protect the interests of members, the law prohibits Nidhi Companies from:
- โEngaging in Chit Fund, Hire Purchase, or Insurance business.
- โOpening Current Accounts with its members.
- โIssuing Preference Shares or Debentures.
- โPaying brokerage or incentives for mobilizing deposits.
- โLending to or accepting deposits from Body Corporates or Minors.
โWhy Partner with Purna Chandra Achary & GST Suvidha Center?
โWhen you choose Pcachary.n for your Nidhi Company formation, you aren’t just hiring a consultant; you are partnering with a GSP-approved gateway.
- โExperienced Professionals: Our backend team consists of CA/CS professionals with deep knowledge of the Nidhi Rules.
- โNominal Rates: We aim to make businesses “burdenless” by providing high-end services at pocket-friendly prices.
- โTransparent Progress: We maintain a progress chart for every client, ensuring you are never in the dark about your application status.
- โTechnology-Driven: Utilize our Mobile App and dedicated Relationship Managers for real-time support.
โContact Information
โPurna Chandra Achary
Channel Partner โ GST SUVIDHA CENTERS
Center Code: WB 093
Mobile: +91 9836812177
Email: connect@pcachary.in
Office: Budge Budge, Kolkata, West Bengal – 700137
