Steps to Incorporate Nidhi Company Registration
1. Application of DSC & DPIN :
First of all, the partners have to apply for Digital signature and DPIN for Nidhi company. Digital signature is an online signature used of filing and DPIN refer to Directors PIN number issued by MCA. If the directors already have DSC and DPIN, then this step can be skipped.
2. Name approval :
You have to provide 3 different name options for Nidhi company to MCA of which one will be selected. Names provided should ideally be unique and suggestive of company business.
Step 3. MOA & AOA submission :
Once the name is approved, one needs to draft Memorandum of association and Articles of Associate. But the object of the Nidhi company must always be a charitable object. Both MOA and AOA are filed with the MCA with the subscripttion statement.
Step 4. Get incorporation certificate :
It typically takes 15- 25 days to form a Nidhi company and get the incorporation certificate. Incorporation certification is a proof that company has been creation. It also includes your CIN number.
Step 5. Apply for PAN, TAN and Bank account :
Then you need to apply for PAN and TAN. PAN and TAN are received in 7 working days. Post this, you can submit the Incorporation certificate, MOA, AOA and PAN with bank to open your bank account.
OR
Online Filing
The Ministry of Corporate Affairs (MCA) has issued an integrated incorporation form INC-32. So now, an OPC can be incorporated online by filling the Simplified Proforma for Incorporating Company Electronically (SPICe) form in Form INC-32 (using Digital Signature Certificate of the Director)along with (eMoA) in Form INC-33 and (eAoA) in Form INC-34.
Factors to Consider in Nidhi Company Name Selection
The name of your Nidhi Company is very important. Your Nidhi Company’s name is the first impression to your buyers, suppliers and stakeholders. It should therefore be attractive, relevant and suggestive. There are several factors that you should keep in mind while choosing a name for your company.
Short & Simple
The name should be concise and not be too long. People should be able to recall and pronounce your company’s name easily the first time they hear or read it.
Meaningful
The name of your Nidhi Company should be relevant to your business. It should fit the company’s branding strategy. For example, Infosys refers to information systems or IT technologies.
Unique
Name of your Nidhi Company should not be exactly the same or identical to an existing LLP or company or trademark or for which a trademark has been applied for. You can go to search.legalraasta.com to check if your company name matches any others. Ideally, you should avoid plural version e.g, “Snapdeals” or merely changing the letter Case or punctuation marks or spacing in an existing LLP, Company and Trademark name
Suffix
Nidhi Company’s are not required to end their name with “Nidhi” or “Limited”.
Should not be illegal / offensive
The name of your LLP should not be against law. It should not be abusive or against the customs and beliefs of any religion and should not use words or phrases which are used as a slur and are offensive to a particular group of people. Further, names cannot include foul words or phrases.
Should not violate any laws
Your Nidhi Company’s name should not be given under and violate the Emblems and Names (Prevention of Improper use) Act, 1950. Click here to check the names. (See the Schedule)
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