As we have discussed Nidhi Company is a type of Non-Banking Finance Company. But unlike other NBFC the regulating, as well as Nidhi Company registration norms, are less stringent. No Reserve Bank of India approval is required for Nidhi company registration in India.
Nidhi Company registration procedure is quite simple and straightforward and is done as per the provisions of Companies Act, 2013.
What is Nidhi Company registration procedure?
Here, we will discuss Nidhi Company Registration procedure in brief. Following are the steps involved in it:
STEP 1: Apply for digital signature (DSC) of all the proposed directors and shareholder for the Nidhi Company registration. This DSC is very crucial as the entire Nidhi company registration process is online and DSC will be required for signing all the forms. This DSC is issued by certified agencies.
STEP 2: Next step is to select a name for the proposed Nidhi Company. And file for name approval through RUN service available on the MCA portal. The applicant can only file with 2 proposed names. The name must end with Nidhi limited.
STEP 3: Once the name is approved by the authorities applicant is required all the incorporation documents along with AOA and MOA for Nidhi company registration.
STEP 4: File registration application through SPICe Form. All the documents must be submitted as attachments and complete details of all the directors and shareholder are also provided in it.
STEP 5: After proper scrutiny if the authorities are satisfied Certificate of Incorporation is issued. It contains Company Incorporation Number, PAN, TAN, and Director Identification Numbers are also issued.