A Nidhi Company is a business structure which was established under Section 20A of the Companies Act, 1956 (Section 406 of the new Companies Bill 2012, as passed by the Lok Sabha) and is solely governed by the Ministry of Corporate Affairs (MCA).

Nidhi companies are a popular form of savings and investment for individuals in India, as they offer a safe and secure way to save money and earn interest. They are also a reliable source of finance for small businesses and entrepreneurs.

Steps to start Nidhi Company

To start a Nidhi company in India, you will need to follow the steps outlined below:

• Choose a unique name for your company and check its availability by conducting a name search on the Ministry of Corporate Affairs (MCA) website.
• Obtain a Digital Signature Certificate (DSC) and Director Identification Number (DIN) for each director of the company.
• Draft the Memorandum of Association (MOA) and Articles of Association (AOA) of your company. These documents should be signed by all the directors and notarized.
• File the MOA and AOA, along with the DSC and DIN of the directors, with the MCA through their online portal (MCA21).
• Obtain a certificate of incorporation from the MCA, which will serve as proof that your company has been legally registered.
• Obtain any necessary licenses and approvals from the relevant authorities, such as the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI).
• Open a bank account in the name of your company and start conducting business as a Nidhi company.

It is important to note that starting a Nidhi company requires compliance with various laws and regulations, and it is advisable to seek the assistance of a professional such as a lawyer or chartered accountant to ensure that all the necessary steps are followed properly.