Nidhi Company Registration
Ideal for deposits and loans
For dealing in finance
Simple & Secure Online Process
Dedicated Professional
Get Registration in 10-12 Days
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Introduction of Nidhi Company
Nidhi Company means a Company engaged in receiving deposits and lending loans to its Members only for their mutual benefits. It is incorporated as a Public Limited Company and is different from National Banking Finance Company governed by the RBI Act and other Companies incorporated under Companies Act, 2013. The purpose behind incorporating a Nidhi Company is to develop a habit of saving and thrift among its Members.
It is not directly regulated by the RBI but is required to follow some of the directives that are issued by the RBI from time to time for acceptance of deposit. It is an ideal type of entity for a specific group of people intended to deposit or lend money.
Compliance Sagar has team of experts providing you the best assistance, timely delivery and guaranteeing the highest customer satisfaction with respect to Company formation process. You may get in touch with our team on +91 90797 59095 or email cssunil93@gmail.com for Nidhi company registration and Compliance services.
Advantages of Nidhi Company
Micro Finance
Nidhi Company lends money in the remote as well as rural areas of the country and which are on the off site locations.
Limited Liability
The liability of the Members is limited to the extent of Capital invested by them in the Company and therefore, they cannot be held personally liable for it also it is a legal entity which means it is different from its Members and Directors.
Less Complexity
Nidhi Company involves fewer complexions and can be incorporated with an amount of Rupees 10 Lakhs which is to be raised to 20 Lakhs within 120 days of incorporation and the loans from the Nidhi Company can be availed at cheaper rates than NBFC\'s.
Good option for savings
As the main objective of establishing Nidhi Company is to develop a habit of savings among the people for their mutual benefit as they can only lend and borrow money from their members only.
Better Credit Co-operative society
Nidhi Company has some similarities to the co -operative society and is suitable for the small financers. Once it gets registered it can avail the benefits of credit co-operative society.
Easy Access to Public Funds
Nidhi Company can take deposits from its members through various accounts like Saving Account, FD A/c, Rd A/c which is less complex than taking finance from banks and other Financial Institutions.
Minimum Requirements for Nidhi Company Registration
Documents Required for Nidhi Company Registration
PAN Card of the Member and Directors of the proposed Company, Passport in case of Foreign Nationals
Identity Proof of the Member and Directors of the proposed Company (Aadhar /Voter ID/Driving License/Passport)
Address Proof of the Members and Directors (Utility Bill/Telephone Bill/Mobile Bill/Bank Statement not older than two months)
Latest passport size photograph of Member and Directors
Business Address Proof Owned Property : (Copy of Registry and Latest Govt. Electricity Bill or Water Bill)
Business Address Proof Rented/leased: (Rent Agreement, NOC from the Owner, Latest Govt. Electricity Bill or Water Bill)
Note:- In case of NRI or Foreign National documents of Directors and Subscribers must be notarized or apostillled.
Process of Nidhi Company Registration
Get your Nidhi company registered
(Inclusive of all fees)
Post Registration Requirements
Minimum 200 Members should be there within 120 days of incorporation
Unencumbered deposits should be more than 10% of outstanding deposits
The ratio for Net Owned Funds to Deposit should not be more than 1:20
Net Owned Funds should be 20 Lakh Rupees or more within 120 days of incorporation for New Companies and for existing Nidhi Companies, there is relaxation of 18 Months from the commencement of New Amendments Rule to maintain this limit.
Loans & Deposits
Nidhi companies have an advantage over other type of finance vehicles that they can lend loans and accept deposits from general public (members) without the approval of RBI. It is important to know the basics before doing the same
Loans
- Can provide loan only to its members
- Certain Monetary Limits have been defined for giving loans
- Can only give secured loans against gold, silver, immovable property, FDs, NSC, other Govt Securities and Insurance Policies
- It can charge interest rate 7.5% above the rate of interest offered on deposits on reducing balance method
Deposits
- Can accept 20 times deposit of the Net Owned Funds (Example : If NOF is Rs. 10 lakhs, it can accept deposits amounting to Rs. 2 crores
- Deposits can be accepted in the form of FD A/c, RD A/c, Savings A/c
- Can pay interest on FD and RD up to 12.5% and 6% on Savings A/c.
- Fixed Deposits Tenure : 6 months - 60 months
Recurring Deposits Tenure : 12 months - 60 months
Compliances of Nidhi Company of Post Incorporation
NDH-1
NDH-1: NDH-1 is a one-time form to be filed by Nidhi Company incorporated before 19th April 2024, within 90 days of the closure of the first financial year or second where applicable.
NDH-3
NDH- 3 form is filed within 30 days on half yearly basis and details of the members, deposits, loans are reported to department.
NDH-4
NDH-4 form has to be filed within 120 days from the date of incorporation for declaration of the status as Nidhi Company.
Other forms
Nidhi has to file other forms like AOC-4, MGT-7, MGT-14 and other event based forms as per the applicability.
Comparison Between Nidhi Company and NBFC
| S. No. | Basis | NBFC | Nidhi Company |
| 1. | Act | Governed by Indian Banking Regulation Act, 1934 | Governed by Companies Act, 2013 |
| 2. | Capital required | More Capital is required | Less Capital required then NBFC |
| 3. | Compliances | Strict Norms and Regulations | Less Strict Norms and Regulations |
| 4. | Restrictions | There are no such restrictions applicable on NBFC like Nidhi Company | Nidhi Company cannot do business of chit funds, hire purchase finance, lease finance, insurance or acquisition of securities issued by the Body Corporate. |
| 5. | Opening of Branch | Can open branch at any time | It has to continuously earn profit for a period three years for opening a branch. |
| 6. | Dealing | Can deal with general public | Can only deal with its Members |
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