Unleashing Financial Empowerment: A Step-by-Step Guide to Registering a Nidhi Company in Sikar

In the sparkling city of Sikar, where entrepreneurial spirit thrives and community engagement is paramount. The establishment of a Nidhi Company can offer a catalyst for financial empowerment and local economic growth. Nidhi Companies, as unique non-banking financial institutions, give a platform for individuals to come together, foster a culture of savings, and access credit facilities tailored to their needs. If you are eager to embark on this journey and contribute to the financial well-being of the Sikar community, this guide is your roadmap to successfully Nidhi Company Registration in Sikar.

Glimpses on Nidhi Company

A Nidhi company is a type of non-banking financial institution (NBFC) in India that primarily works to promote the habit of thrift and savings among its members. It falls under the purview of the Companies Act, 2013, and is regulated by the Ministry of Corporate Affairs (MCA) and the Reserve Bank of India (RBI).

The main objective of a Nidhi company is to cultivate the habit of savings and thrift among its members and provide them with easy access to credit facilities. It aims to promote mutual benefit within the group of members and work towards their financial well-being.

Eligibility Criteria for Nidhi Company Registration in Sikar

To register a Nidhi company in Sikar, you need to fulfil certain eligibility criteria. Here are the key requirements:

• Minimum Number of Members: A Nidhi company must have a minimum of 200 members within one year of its incorporation. It is essential to ensure that you have a sufficient number of individuals willing to become members of the Nidhi company before proceeding with the registration process.
• Member Subscription: Each member of the Nidhi company must subscribe to a minimum of 10 equity shares or a higher number as specified in the company’s Memorandum of Association (MOA). The capital raised through these shares will form the net owned funds (NOF) of the Nidhi company.
• Minimum Net Owned Funds (NOF): A Nidhi company is required to have a minimum net owned fund of Rs. 10 lahks or more. NOF refers to the aggregate of paid-up equity share capital and free reserves of the company. It is important to ensure that your company meets this financial requirement.
• Incorporation as a Public Limited Company: A Nidhi company must be incorporated as a public limited company under the Companies Act, 2013. This means that the company must have at least seven shareholders and three directors. The directors must obtain Director Identification Numbers (DIN) from the MCA.
• Restricted Business Activities: Nidhi companies are restricted from engaging in certain activities. They cannot carry out chit-fund activities, hire purchase financing, or deal in securities. The primary business of a Nidhi company should be accepting deposits and providing loans to its members.
• Local Presence: While there is no specific requirement for a Nidhi company to have a physical office space, it is advisable to have a registered office address in Sikar or the desired location for communication and operational purposes.
• Regulatory Compliance: After registration, a Nidhi company must comply with the ongoing regulatory requirements set by the MCA and the RBI. These include conducting annual general meetings, maintaining proper books of accounts, filing annual returns, and adhering to the rules and guidelines specified for Nidhi companies.

Documents required for Nidhi Company registration in Sikar

To register a Nidhi company in Sikar or anywhere in India, you need to gather and submit the following documents:

1. Directors’ Documents:

• Passport-sized photographs of all directors.
• Self-attested copies of PAN cards or identity proofs (such as Aadhaar card, voter ID, or passport) of all directors.
• Self-attested copies of address proofs (such as an Aadhaar card, passport, utility bills, or bank statements) of all directors.

2. Registered Office Documents:

• Proof of registered office address, such as a sale deed, lease agreement, or rental agreement.
• No Objection Certificate (NOC) from the owner of the registered office.
• Utility bill (electricity bill, water bill, or property tax receipt) in the name of the owner of the registered office. The bill should not be older than two months.

3. Subscriber Documents:

• Self-attested copies of PAN cards or identity proofs (such as Aadhaar card, voter ID, or passport) of all subscribers/members.
• Self-attested copies of address proofs (such as an Aadhaar card, passport, utility bills, or bank statements) of all subscribers/members.

4. Memorandum and Articles of Association (MOA and AOA): MOA and AOA of the Nidhi company. These documents define the objectives, rules, and regulations of the company. You can use the standard format provided by the MCA.
5. Declaration and Affidavits:

• Declaration by the proposed directors affirming their eligibility to act as directors.
• Affidavit by the proposed directors and subscribers stating that they have not been declared insolvent, convicted, or involved in any malpractice.

6. Digital Signature Certificate (DSC): DSC of at least one of the proposed directors. This is required for filing online forms during the registration process. DSCs can be obtained from certified authorities.

How does Nidhi Company work?

A Nidhi company works on the principle of mutual benefit and aims to cultivate the habit of savings and thrift among its members. Here’s an overview of how a Nidhi company operates:

• Membership: A Nidhi company is formed by a group of individuals who come together with the common objective of promoting savings and accessing credit facilities. Membership is limited to individuals and is open to anyone who meets the eligibility criteria set by the company.
• Accepting Deposits: Nidhi companies accept deposits from their members, which form their primary source of funds. Members can make regular deposits into their savings accounts with the Nidhi company. The company may offer various deposit schemes and encourage its members to save money regularly.
• Lending to Members: Nidhi companies provide loans or advances to their members against the security of their deposits. The loans may be offered for various purposes, such as housing, education, business, or personal needs. The interest rates charged by Nidhi companies are generally lower than those offered by traditional financial institutions.
• Limited Operations: Nidhi companies have limitations on their operations. They cannot engage in activities such as chit-fund schemes, hire purchase financing, or dealing in securities. The primary focus of a Nidhi company is to accept deposits from its members and provide them with affordable credit facilities.
• Regulation and Compliance: Nidhi companies are regulated by the MCA and the RBI. They need to comply with the regulations and guidelines set by these authorities, including maintaining proper books of accounts, conducting annual general meetings, filing annual returns, and adhering to the prescribed norms.
• Member Participation: Members of a Nidhi company have a say in the decision-making process and can participate in the affairs of the company. They can attend annual general meetings, vote on important matters, and contribute to the overall functioning and growth of the company.

Step-by-Step procedure for registering a Nidhi Company in Sikar

To register a Nidhi company in Sikar, you need to follow the steps outlined below:

• Directors’ Identification Number (DIN): Obtain DIN for all the proposed directors of the Nidhi company. DIN can be obtained by submitting the DIN application to MCA along with the necessary documents.
• Digital Signature Certificate (DSC): Obtain a DSC for at least one of the proposed directors. The DSC is required for filing online forms during the registration process. You can get a DSC from certified authorities.
• Name Approval: Choose a unique name for your Nidhi company and apply for name approval through Form INC-1. Ensure that the name complies with the naming guidelines provided by the MCA.
• Memorandum and Articles of Association (MOA and AOA): Prepare the MOA and AOA of the Nidhi company. These documents define the objectives, rules, and regulations of the company. You can use the standard format provided by the MCA.
• Incorporation Application: Prepare the incorporation application by filling out Form SPICe (Simplified Proforma for Incorporating Company Electronically) along with the required documents such as MOA, AOA, and other supporting documents.
• Submitting Documents: Submit the filled Form SPICe, along with the required documents, to the Registrar of Companies (ROC) electronically.
• Payment of Fees: Pay the requisite registration fees online as per the MCA guidelines. The fees may vary based on the authorized capital of the company.
• Certificate of Incorporation: After verifying the documents, if everything is in order, the ROC will issue the Certificate of Incorporation (COI) with a unique CIN (Corporate Identity Number). The COI signifies the formation of the Nidhi company.
• PAN and TAN Application: Once you receive the COI, apply for the Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) for your Nidhi company. These can be done online through the respective government portals.
• Nidhi Company Compliance: After registration, ensure that you comply with the ongoing compliance requirements for Nidhi companies.

Mandatory Compliance after registering a Nidhi Company in Sikar

After the registration of a Nidhi company in Sikar, you need to comply with various mandatory regulations and requirements. Here are some of the key compliance obligations:

• Conducting Annual General Meeting (AGM): A Nidhi company is required to hold an AGM within six months from the end of the financial year. The AGM provides an opportunity for members to discuss the company’s performance, financial statements, and any other relevant matters.
• Filing Annual Returns: Every Nidhi company must file its annual returns with the RoC within 60 days from the conclusion of the financial year. The annual return includes details such as the company’s financial statements, shareholding patterns, and other prescribed information.
• Maintenance of Books of Accounts: Nidhi companies are required to maintain proper books of accounts, including records of all financial transactions, deposits received, loans granted, interest charged, etc. The books of accounts should be kept at the registered office of the company and must be updated regularly.
• Compliance with Accounting Standards: Nidhi companies need to comply with the accounting standards prescribed by the Institute of Chartered Accountants of India (ICAI). This includes proper accounting and financial reporting practices, ensuring transparency and accuracy in financial statements.
• Statutory Audit: Nidhi companies are required to undergo an annual statutory audit by a qualified Chartered Accountant. The auditor will examine the company’s financial records, statements, and compliance with applicable laws and regulations.
• Regulatory Reporting: Nidhi companies are required to submit various reports and forms to regulatory authorities such as the MCA and the RBI. These may include forms related to annual returns, changes in directors or shareholding, updates on deposit-taking activities, and other regulatory requirements.
• Complying with RBI Guidelines: Nidhi companies, as NBFCs, must comply with the guidelines and directions issued by the RBI regarding deposit-taking activities, interest rates, loan disbursements, capital adequacy, and other relevant aspects.
• Maintaining Statutory Registers: Nidhi companies need to maintain various statutory registers, including registers of members, directors, deposits, loans, etc. These registers should be updated and made available for inspection by members, regulatory authorities, or other stakeholders as required by law.

Takeaway

As we conclude our exploration of Nidhi company registration in Sikar, it becomes evident that this endeavour holds immense potential to unlock financial prosperity and empower individuals within the community. The simplified registration process, coupled with the numerous benefits of operating as a Nidhi company, makes this venture an attractive option for those seeking to make a positive impact on the local economy. However, it is crucial to remember that successful registration is just the beginning of the journey. By establishing a Nidhi company in Sikar, you contribute to the financial well-being of individuals, promote savings, and create opportunities for community members to access credit facilities that may have otherwise been out of reach.