Read on to find out all you need to know about the DIN of Directors for Online Nidhi Company Registration and the procedures involved.
Nidhi Company is now a well-known financing method for acquiring secured loans. It is a leading company established to acquire and lend money to its members. So the Online Nidhi Company Registration process is very crucial for all.
These companies are mainly prevalent in India’s southern regions. Section 406 of the Companies Act, 2013 also addresses the procedure of Online Nidhi Company Registration. No permission from the Reserve Bank of India is required to register a Nidhi Company in India. As a result, establishing a Nidhi Company is simple, and Nidhi Companies in India are established as Public Companies. They must include the words Nidhi Limited at the end of their title.
No longer do you stress about coming up with a company name. A list of available companies can be created using the Vakilsearch Business Name Generator.
DIN of Directors for Online Nidhi Company Registration
DIN stands for Director Identification Number and is a unique identification number assigned to a person who is posted as a company director. DIN of Directors can be obtained by applying DIR-3 under Sections 153 and 154 of the Companies Act of 2013. A new company’s application for DIN allotment must be made only using SPICe eform at the time of establishment.
Anyone wishing to become a director of an existing company must complete form DIR-3, which is then processed by the Central Government (Office of Regional Director (Northern Region), Ministry of Corporate Affairs). Furthermore, the approving authority will issue a DIN of Director to an individual elected as a director after filing form SPICe (INC-32) (Central Registration Centre).
Nidhi Company Registration Procedure
The following are the stages involved in acquiring Online Nidhi Company Registration:
- Firstly, get your DSC and DIN: The first and most important step for all Directors is to get a Director Identification Number or DIN of director and DSC (Digital Signature Certificate).
- Secondly, get approval for your titles: The shareholders or directors must apply to the Ministry of Corporate Affairs for name approval by submitting three names. Furthermore, the Ministry will select one of the suggested names for the stated Company.
Any suggested names must be distinct and not similar to the name of an already existing organisation. Under Rule 8 of the Companies Act of 2013, the approved name is only valid for 20 days.
- The third step is to create the MOA and AOA: Following the approval of the name, the directors must submit the Application for Registration in the form INC- 32, along with the Articles of Association and Memorandum of Association. It is also important to note that the documentation must indicate the reason for forming a Nidhi Company.
- The fourth step is the Incorporation Certificate: A Nidhi Company’s Certification of Incorporation usually takes 15 to 25 days. Moreover, this certificate is documentation or proof that the Company has been incorporated. This certificate also includes the Company’s Identification Number.
- Lastly, having a bank account and obtaining a TAN and a PAN: The directors must file for PAN and TAN. Furthermore, shareholders or business members must open a bank account by sending the Certificate of Incorporation and copies of the MoA, AoA, and the PAN details to the bank. It becomes necessary to make the Online Nidhi Company Registration for the small money Savings Business.
Prerequisites for Online Nidhi Company Registration
A firm must meet certain requirements to be established as a Nidhi Company. The prerequisites are summarised as follows:
- Under the Companies Act, the Company must be formed as a Public Limited Company.
- DIN of directors must be given.
- A minimum of seven shareholders and at least three directors are required.
- The Company’s equity capital should be at least Rs. 5 lakh.
- A minimum of 200 members is required for an establishment.
- The Company should have Net Owned Funds of at least Rs. 10 lakh.
- The Company’s title must have ‘ Online Nidhi Company Registration’ at the end.
- The Company’s goal should be to lend and borrow funds only among its members.
- The corporation must have at least 10% of its outstanding deposits in unencumbered term deposits.
- The Net Owned Funds to Deposits ratio should be 1:20 or less.
How to Acquire DIN of Directors
A person’s DIN can be acquired by completing Form DIR-3. The DIR-3 form must include a picture of the DIN applicant, as well as the applicant’s information and the accompanying documents:
- Income-tax PAN is a legal requirement for Indian nationals as proof of identity.
- Mostly in the case of foreign residents, a passport is required as proof of identity.
- Address proofs such as a passport, voter identity, ration card, driving licence, energy bill, telephone bill, or aadhaar card must be attached and must be in the applicant’s name solely.
- In the event of an Indian applicant, documentation must be no more than two months old from the day the eForm was filed.
- In the case of a foreign application, address documentation must be no more than one year old as of the day the eForm was filed.
- The individual applying for DIN must digitally sign the application with a class2 signature. Furthermore, a Chartered Accountant, Cost Accountant, or Company Secretary in the full-time activity must digitally sign the DIN application form.
If a candidate is nominated as a Director, a full-time Company Secretary or Company Director can also digitally verify the DIN document. However, in such circumstances, the supporting documents must either be self-attested by the candidate or officially attested by a Public Notary or a Government Gazette Officer.
Din Application Fees
DIN of the Director’s application fees is ₹500/-.
Reasons for Refusal
These are the points for refusing to accept an application for a DIN of Directors:
- The clearance of provisional DIN of directors is applicable only after examining the attached documents with the application.
- The documents that are supported are either invalid or expired.
- A government department has not issued the required proof of identity.
- The application must be a copy of the DIN application, with at least one application pending or authorized by that applicant.
- Failure to include a photograph with your application submission.
- There was no attachment of signatures as required.
- The claimant’s name on the application form does not match the name of the evidence presented.
- The ID number given in the application does not match the identity evidence.
- The used records are not authenticated.
- If the application is rejected, a new DIN application can be submitted.
Additionally, the fundamental aim of establishing the Online Nidhi Company Registration structure is to promote and empower its members to save to meet their financial demands as they arise. As a result, this Company is founded on the philosophy of mutual benefits.
Also, remember that Nidhi Companies are under the supervision of the RBI, as their function is similar to that of NBFCs. To read more, go and visit the Vakilsearch website.
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