If you’re interested in establishing a Nidhi Company in India, you’re in the perfect spot. Our proficient team can guide you through the entire registration procedure, ensuring a seamless experience. Nidhi Companies are NBFCs tailored to encourage savings among members. With our budget-friendly options and swift registration, initiating your Nidhi Company is a breeze. Reach out to us today to kickstart your journey!
Nidhi companies have a longstanding presence in India, with records from the Ministry of Corporate Affairs (MCA) dating back to as early as 1903, showcasing their incorporation. Their numbers have steadily risen over time, and they have upheld their commitment to offering a “money-back promise” and “risk-free service.” These companies have gained traction in the Indian financial sector due to various unique advantages not commonly found in other financial institutions.
According to the Companies Act of 2013, Nidhi companies are categorized within the Indian Non-Banking Finance Sector (NBFCs). The term “Nidhi” translates to “treasure” in Hindi, and these entities primarily engage in lending and borrowing money among their members. Operating as public limited companies, Nidhi firms collect funds from their members, which are then made accessible to other members at favorable interest rates.
Operating on the principle of mutual benefits, these firms are overseen by the Ministry of Corporate Affairs (MCA). The primary aim of establishing a Nidhi company is to promote cost reduction and savings among its members. It’s important to highlight that the members are separate entities from the company itself, allowing the company to conduct transactions under its own identity. This encompasses activities such as purchasing, selling, asset acquisition, debt incurrence, and legal proceedings, all conducted under the company’s name.
Nidhi companies operate under the Nidhi Rules of 2014 and are exempt from regulation by the Reserve Bank of India (RBI). As a result, they are not obligated to seek approval or a license from the RBI, streamlining the registration process. Unlike conventional NBFCs, Nidhi companies can initiate operations without obtaining an RBI license. Nonetheless, they are required to maintain a minimum membership of 200 individuals within the first year of commencing operations.
A minimum of seven individuals is required to establish a Nidhi company. These companies are prohibited from raising funds from the general public and are restricted to opening a maximum of three branches within a district.
Nidhi companies are prohibited from conducting microfinance or vehicle financing operations. Deposits can only be refunded after a three-month period from the date of acceptance, and depositors do not receive any interest until six months after the deposit is made.
The Nidhi Company registration can be completed in just 4 steps.
Obtain digital signature of the directors | Obtain DIN no. of the directors | Company Name Approval | Incorporation Certificate |
Within one year of incorporation, a nidhi company must ensure the following compliances:
The registration procedure is entirely digitized. You can easily scan and send all required documents and photos using your mobile devices. One Click Business Solutions offers comprehensive support throughout the registration process, ensuring a smooth and hassle-free experience for you.
Documents of directors and shareholders:
Documents required for the registered office:
A Nidhi company is a type of non-banking financial company (NBFC) that primarily deals with borrowing and lending money among its members, with the aim of promoting thrift and savings habits.
To register a Nidhi company in India, you need at least seven members, with the incorporation documents meeting the specified requirements outlined by the Ministry of Corporate Affairs (MCA). Additionally, the company must have a minimum paid-up equity share capital of Rs. 5 lakhs.
The process involves obtaining Digital Signature Certificates (DSCs) and Director Identification Numbers (DINs) for the proposed directors, followed by the submission of the necessary incorporation documents to the Registrar of Companies (ROC).
The primary objectives of a Nidhi company include cultivating the habit of thrift and savings among its members, promoting mutual benefit by accepting deposits and lending to its members, and facilitating access to credit for its members at reasonable rates of interest.
No, a Nidhi company is prohibited from accepting deposits from the public. It can only accept deposits and lend money to its members, who are also its shareholders.
Yes, the operations of a Nidhi company are restricted to the district level. It cannot extend its operations beyond the district in which it is registered.
After registration, a Nidhi company must adhere to various compliance requirements, including conducting annual general meetings, filing annual returns with the ROC, maintaining proper books of accounts, and complying with the regulations specified by the MCA.
No, a Nidhi company is not permitted to issue secured loans. It can only provide unsecured loans to its members against the security of their deposits.
Yes, a Nidhi company must have a minimum of 200 members within one year of its incorporation. If it fails to meet this requirement, it may face penalties or even deregistration.
No, a Nidhi company is prohibited from issuing preference shares. It can only issue equity shares to its members.