Nidhi Company Registration
One of the famous types of entities to borrow and lend money within members in India. Section 406 of the Companies Act, 2013, deals with the process of Nidhi Company Registration. Nidhi Company refers to the type of NBFC NBFC (Non-Banking Financial Corporation) regulated by the Company Act 2013. The structure of Nidhi company deals with the deposits from and loans to its members, i.e., shareholders only, and just for the mutual benefits of its members.
Nidhi Company activities fall under the ambit of RBI (Reserve Bank of India), as it is similar to that of an NBFC. However, RBI has excused this Company from the core provisions of the RBI Act, 1934.
Minimum Requirement of Private Limited Company Registration:
Minimum of 7 shareholders or members
Minimum of 3 Directors
Minimum of Rs 5 Lakhs needed as the capital
Documents Required for Private Limited Company Incorporation:
1. Documents from Directors and Shareholders
A. Identity Proof:
1) Permanent Account Number (PAN) Card
2) Aadhaar Card / Passport / Driving License / Voter Identity Card
3) 7/12 Extract or Farmer Certificate duly Signed and Stamp by Taluka Tahsil Officer
B. Address Proof:(Any One)
1) Telephone Bill / Mobile Bill
2) Electricity Bill / Water Bill
3) Bank Statement /Bank Passbook with the latest transaction (Any one of the Documents not older than 2 months)
C. Personal Details
1) Email ID
2) Mobile No
3) Educational Qualification
4) Place of Birth
5) Recent Photograph (Color Copy)
2. Registered Office – Address
1) No-Objection letter from the Owner of Address to use the address of the registered office of the Company.
2) Address Proof – In the name of the Owner
Electricity Bill, Telephone Bill (Fixed Line Only), Gas Bill or Water Bill (Not older than 2 months);- To be signed by the of the Owner of Premises
OR
Tax Paid Receipt or Copy of Registered Sale Deed- To be signed by the Shared Office Service provider.
Steps to Incorporate a Private Limited Company?
Step 1: Name Approval and its Reservation:
RUN (Reserve Unique Name) form is filled for the reservation of the name along with Object of the Company. The name provided must be as per rule 8 of the Company Registration Act, 2013.
Step 2: Obtain DSC (Digital Signature Certificate):
It is required to obtain Digital Signature Certificates of all Directors and Shareholders to sign the Incorporation forms.
Step 3: Preparation of form SPICE Part-B:
Once the name is approved Spice Form Part-B is required to be prepared along with certain declarations
Step 4: Preparation of MOA, AOA, and AGILEPRO Form:
Drafting of MOA, AOA and AGILEPRO form required to prepare to obtain other registrations like ESI, EPF, PTRC/PTEC (Professional Tax), and GST which are now compulsory in case Private Limited Company.
Step 5: Preparation of SPICeINC9:
Declaration by Subscribers and First Directors are required to be prepared which was offline form earlier. Now INC-9 is to be submitted by attaching the DSC of all Subscribers and First Directors.
Step 6: Submission of Incorporation Forms:
Once all forms are prepared, Submission is SPICE Part-B, MOA, AOA, AGILEPRO, and INC-9 are to be required. By filing required forms and payment of fees the forms will be processed by the CRC team Delhi.
Step 7: Approval of the Documents:
Once the SPICE Part-B, MOA, AOA, AGILEPRO, and INC-9 is approved, the registrar provides the Company Identification Number (CIN) along with PAN and TAN of the company. Other certificates like ESI, EPF, PTRC/PTEC (Professional Tax), and GST will be issued in due course of time.
Post-Incorporation Formalities / Requirements:
1. Appointment of Statutory Auditor
Under section 139, the first auditor of the company, (who is Chartered Accountant), shall be appointed by the Board of Directors within thirty days (30 days) from the date of registration of the company. Such auditor shall hold office till the conclusion of the First Annual General Meeting.
2. Disclosure of Interest of Directors
Under section 184, every Director shall, at the First Board Meeting of the Company and each such First Board Meeting held in a financial year, disclose to the Board his interest in other entities. The Board shall take note of the same.
3. Opening a Bank Account
To open a bank account, as per the bank’s policy, you may need to submit the PAN and Certificate of Incorporation along with the documents required.
4. Allotment of the securities
Under section 56, every company shall deliver the certificates of all securities allotted (after paying requisite Stamp Duty), transferred or transmitted within two months (2 months) from the date of incorporation, in the case of subscribers to the memorandum.
Therefore it is mandatory to open a Bank account and after the opening of the company’s Bank Account, each subscriber to the memorandum of association should deposit the amount of subscription money of the shares agreed to be taken by him from their respective account in the company’s Bank account by individual cheque or online.
5. Commencement of Business – (Newly inserted on 2nd November 2018)
This compliance is newly added by MCA. Every company before starting its business or exercising its borrowing powers must file form INC-20 A for the declaration of commencement of business. This form is to be filed within 180 days from the date of incorporation of the company. It applies to all companies having a share capital and which is incorporated on or after 2nd November 2018. There are strict consequences of non-filing of this form which are as under:
· Late filing fees levied by MCA, if a form is not filed within 180 days of incorporation
· A Penalty of Rs.50,000/- to the company
· A Penalty of Rs.1000/- per day to the director
· MCA may remove the name of the company from the register of companies.
6. Intimation of Registered Office Address
If the company has not provided an address for the registered office during the registration process, the company must inform the Registrar about it. The intimation of the address must be filed within 30 days from registration and in e-form INC – 22.
7. Corporate Stationery
A. paint or affix its name, and the address of its registered office, and keep the same painted or affixed, on the outside of every office or place in which its business is carried on, in a conspicuous position, in legible letters, and of the characters employed therefore are not those of the language or of one of the languages in general use in that locality, also in the characters of that language or one of those languages;
B. get its name, address of its registered office, and the Corporate Identity Number along with telephone number, fax number, if any, e-mail and website addresses, if any, printed in all its business letters, billheads, letter papers, and in all its notices and other official publications;
8. List of Stationery Items:
A. Common Seal (Optional)
B. Statutory Register (Mandatory)
C. 2 rubber stamps – One round stamp in the name of the company and another for the Director)
