Nidhi Company
Plans starting Rs 3,899/- only*
*T&C Apply. Excludes all Govt Fees and Taxes
Plans starting Rs 3,899/- only*
*T&C Apply. Excludes all Govt Fees and Taxes
for
Nidhi Registration
Basic Plan
- Scope of Business
- Instant Filling
- 4 Name Choice
- Application Form
- Documentation Preparation
- DSC Create
- Name Approval
Nidhi Company
A Nidhi Company is a type of non-banking financial company (NBFC) registered under Section 406 of the Companies Act, 2013. It is primarily engaged in the business of accepting deposits from and lending to its members. Nidhi Companies are regulated by the Ministry of Corporate Affairs (MCA) and the Reserve Bank of India (RBI) and are established with the aim of promoting the habit of thrift and savings among its members.
- Member-Based Structure
- Objective
- Regulation
- Deposits and Loans
- Capital Requirements
- Governance
- Compliance
- Restrictions
Nidhi Companies operate on a membership basis. They are typically formed by a group of individuals who come together for the mutual benefit of their members. Membership is usually limited to the individuals or entities that are part of the company.
The primary objective of a Nidhi Company is to receive deposits from its members and lend money to them for their mutual benefit. The focus is on creating a cooperative financial environment within the member community.
Nidhi Companies are regulated by the MCA under the Companies Act, 2013, and need to adhere to the rules specified under the Nidhi Rules, 2014. They are not regulated by the RBI, but they must follow certain guidelines set by the RBI for the acceptance of deposits and lending activities.
Nidhi Companies can accept deposits from their members and offer loans for various purposes such as personal needs, home improvement, or business expansion. However, they cannot accept deposits from the general public.
There are no specific minimum capital requirements for setting up a Nidhi Company, but the company must have a minimum net owned fund (NOF) of ₹10 lakh as per the Nidhi Rules, 2014.
Nidhi Companies must have a board of directors who oversee the operations and ensure compliance with the legal and regulatory requirements.
Nidhi Companies must file regular returns and financial statements with the Registrar of Companies (ROC). They must also comply with the statutory audit requirements and maintain proper records of transactions.
Nidhi Companies are restricted from carrying out activities such as accepting deposits from or lending to non-members, dealing in shares or debentures, or undertaking any business activity beyond what is allowed under the Nidhi Rules.
- Obtain Digital Signature Certificate (DSC)
- Apply for Director Identification Number (DIN)
- Draft Memorandum and Articles of Association (MOA and AOA)
- File Application for Incorporation
- Obtain Certificate of Incorporation
- Comply with Nidhi Rules
Required for the proposed directors and members for filing electronic documents.
Necessary for all proposed directors.
Prepare the MOA and AOA in compliance with the Nidhi Rules, 2014, outlining the company’s objectives and internal regulations.
Submit Form INC-32 (SPICe) along with the MOA, AOA, and other required documents to the ROC.
Upon approval, the ROC will issue a Certificate of Incorporation, officially forming the Nidhi Company.
Ensure compliance with the Nidhi Rules, 2014, including filing the initial returns and obtaining necessary approvals.
- Community Financial Support
- Easy Formation
- Limited Scope
- Mutual Benefit
Promotes thrift and savings among members, providing a structured way for community-based financial support.
Easier to set up compared to other financial institutions and does not require RBI approval for operations.
Limited to member transactions, which reduces the complexity of operations and regulatory scrutiny.
Focuses on the mutual benefit of its members, creating a cooperative financial environment.
- Limited Operational Scope
- Compliance Requirements
- Limited Growth Potential
Cannot accept deposits from the public or engage in financial activities beyond those specified by the Nidhi Rules.
Must adhere to stringent compliance and reporting requirements, which can be burdensome.
Limited to serving its members, which can constrain growth and expansion opportunities.
Nidhi Companies provide a cooperative financial structure designed to benefit their members, facilitating savings and lending within a controlled environment. However, they must navigate regulatory requirements and restrictions to ensure smooth operations.