FAQ on Nidhi Company Registration


FAQ on Nidhi Company Registration

How much time is required for setting up a Nidhi company in India?

The registration process for a Nidhi company in India typically takes 7-12 days to complete and requires two approvals from government bodies - Name Approval and Final Approval. However, the duration may vary depending on the workload of the Central Registration Centre (CRC) under the Ministry of Corporate Affairs (MCA).


Is physical presence necessary during this process?

No, Nidhi company registration is a completely online process. All the required documents are filed electronically, so physical presence is not necessary at all. You would just need to send us scanned copies of all the required documents & forms.

Who can be a member of a Nidhi Company?

Any individual can become a member/shareholder of a Nidhi limited company including foreigners/NRI. However, such a person must be 18+ above in terms of age and should have a valid PAN card.

What is the status of Nidhi Company, is it a Private Limited Company or a Public Limited Company?

Under the Nidhi Rules 2014, a Nidhi Company must be registered as a public limited company in accordance with Section 406 of the Companies Act, 2013.

How many directors are required for the formation of a Nidhi Company?

To establish a Nidhi Limited Company, there must be a minimum of three directors, one of them should be a permanent resident of India.

Does a Nidhi Limited Company have continuous existence?

As per the law, a Nidhi Limited Company has perpetual succession. Nonetheless, it is crucial to note that the company must fulfil the mandatory statutory annual compliances. Failure to comply with these requirements may result in the Registrar of Companies (ROC) striking off the company's name.

Why is a Nidhi Limited Company is called a separate legal entity?

A Nidhi Limited company is a legal entity and is established as distinct person under the Act. It is treated as a different person which can own a property and have debts or creditors. The members, directors, shareholders of a company have no liability to creditors of a company in case the company is unable to pay the debts.

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