The National Initiative for Developing and Harnessing Innovations is known as Nidhi. Process of Nidhi Company Incorporation become very common these days, here in the present blog we will discuss about the Nidhi Company Incorporation process in detail.  

Nidhi Company is a form of NBFC that engages in money lending and depositing activities for its members. This firm is run in accordance with the rules set forth by the RBI and Nidhi Company Incorporation take place under the Companies Act of 2013. Only the company’s members carry out all transactions. The RBI has exempted the recognized Nidhi firms from its core acts because of all transactions pertaining to the Nidhi Company’s owners. This sets apart Nidhi businesses from other NBFCs. Nidhi businesses are associated with the Ministry of Corporate Affairs (MCA), which founded them. However, the MCA has some control over some of their choices. 

Process of Nidhi Company Incorporation 

Here is a thorough description of the process for the Nidhi Company Incorporation/Nidhi Company Registration with the help of the steps given below- 

Apply for DSC

A candidate must first and foremost apply for a Director Identification Number (DIN) and a Digital Signature Certificate (DSC). For the most part, DSC procurement takes two days.

Draft MOA and AOA

The company charter, also known as the Articles and Memorandum of Association, must be carefully drafted by the organization. These documents outline the company’s internal governance and operational parameters.

These must be written clearly and precisely because they are considered to be the most important legal documents. Seven separate terms are included in the MOA in accordance with Section 4 of the 2013 Company Act. The AOA, on the other hand, includes guidelines for the internal management of the business.

Complete the SPICe+ Web Form to Incorporate Nidhi Company

A certificate of Nidhi Company Incorporation, or COI, is a legally binding document that includes the business’s corporate identification number (CIN), which attests to the organization’s registration and legal standing. The MCA has launched an integrated online form called SPICe+ in an effort to streamline the incorporation procedure. Part A and Part B are the two sections of this form. Complete the SPICe+ Web Form for Nidhi Company Incorporation.

Part-A, Name Reservation 

Make sure to include at least three names you like when submitting part A. MCA adheres to the reliable methodology for verifying the proposed name. The suggested names are typically compared to their extensive database to see if they are legitimate or not due to their distinctiveness. As soon as you enter the following information, the portal will carry out this task in real-time.

• Class of the company
• Category of the business
• A subsidiary of a firm

Services Provided by Part-B for the Nidhi Company Incorporation

Following are the services given or described under part-B- 

• Incorporation
• DIN Allocation
• PAN allotment is required.
• Mandatory TAN allocation
• Assignment of an EPFO registration is required
• Mandatory ESIC registration allocation
• Opening of a bank account
• Issuance of a GSTIN

You will encounter a lengthy form that requests the following information from you as you continue to complete Part B- 

• Correspondence or Registered Address
• Details about Subscribers and Directors
• Information on the nation’s capital
• while requesting a PAN and TAN, the source of income, the area code, the AO type, and the range code

Documents must be Uploaded with the Application 

Following are the documents must be uploaded by the applicant while the application has been made for the Nidhi Company Incorporation- 

• Articles of Association
• Association Bylaws
• First Subscribers and Directors’ Declaration
• Utility Bill Copies, including Electric, Gas, and Water Bills (not older than 2 months)
• Acceptance of Nominee (INC-3)
• Address and applicant identity documentation

The screen will ask you to confirm a declaration after you’ve uploaded these papers. After you have verified the pertinent disclosures, select the Pre-Scrutiny tab and then press the Submit button. The screens will then display a confirmation message informing you that the form was successfully submitted.

Fill in e-MOA, e-AOA, and AGILE Pro

• After that, you had to complete an AGILE-PRO form by providing the remaining details in Part B regarding the assignment of your GSTIN, ESIC, EPFO^[1], and bank account number.
• As you continue, the screen will ask you to submit an electronic memorandum of association (eMOA) and an electronic article of association (eAOA).
• The INC-9 declaration e-form will be auto-populated on Dashboard based on the information about Directors and Subscribers provided in Part B and be available for download and attachment of DSCs.
• Once finished, select Upload Form from the menu.
• Upload Part B and the pertinent linked form together.
• The portal will create a Service Request Number after a successful upload; please make a note of it for your records.
• After that, pay online as directed by the screen.

Conclusion – Nidhi Company Incorporation 

Some people are confused between Nidhi Company Incorporation and NBFC Incorporation. But here we are to make this confusion clear. Both the NBFC Incorporation and Nidhi Company Incorporation are two different entities under the Companies Act; hence we can’t say both of them are similar. We can definitely interpret that there are some things which are common between both of them, but that doesn’t means both are same. The process of Nidhi Company Incorporation is made considerably simpler with the aid of an experienced professional. Even if you understand the fundamentals of Nidhi Company Incorporation, mistakes might still be made. So, cling to Bizadvisors.io services to make the Nidhi Company Incorporation easier.

Read our article:Documents Required for Nidhi Company Registration in India