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Start Business /Nidhi Company Registration

Nidhi Company is a type of non-banking financial company that is formed with the objective of cultivating the habit of thrift and savings amongst its members. It is regulated by the Ministry of Corporate Affairs and is a popular form of business entity in India.

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Nidhi Company Registration

Minimum Requirements

Nidhi Companies require a minimum of seven members, with no minimum capital requirement. The company should have a registered office address and must be registered with the Registrar of Companies (ROC).

Objectives

The primary objective of a Nidhi Company is to encourage the habit of saving and thrift amongst its members. They achieve this by accepting deposits and providing loans to their members at a reasonable interest rate.

Rules and Regulations

Nidhi Companies are regulated by the Ministry of Corporate Affairs and must comply with various rules and regulations under the Companies Act, 2013. These rules govern the management, operations, and financial reporting of the company.

Permitted Activities

Nidhi Companies are not allowed to engage in any activities outside of its core business of accepting deposits and providing loans to its members. The company cannot deal in the securities market or carry on any chit fund activities.

Legal Status

Nidhi Companies are a separate legal entity from its members and have perpetual succession. Members have limited liability in case of any financial losses incurred by the company.

Board of Directors

The board of directors of a Nidhi Company must have a minimum of three directors and a maximum of ten directors. The directors must be appointed by the members and must comply with the eligibility criteria set by the Ministry of Corporate Affairs.

Faq

A minimum of seven members are required to form a Nidhi Company.
No, Nidhi Companies can only accept deposits from its members.
No, Nidhi Companies are exempted from obtaining a license from RBI.
The minimum tenure for a fixed deposit in a Nidhi Company is six months, and the maximum tenure is five years.
No, Nidhi Companies can only provide loans to its members.
No, Nidhi Companies are not allowed to issue shares or debentures.

Our simplified process

01Obtain Digital Signature Certificate (DSC) & Director Identification Number (DIN)

All directors of the company must obtain a DSC & DIN from the Ministry of Corporate Affairs.

02Name Approvals and Incorporation

A suitable name for the company must be proposed, and the company must be incorporated with the Registrar of Companies.

03Compliance and Reporting

The company must comply with all the rules and regulations set by the Ministry of Corporate Affairs and must file regular reports and financial statements with the ROC.

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