Mutual Benefit Financial Society

Nidhi Company Registration

Register your Nidhi Company for accepting deposits and providing loans to members. Operate as NBFC without RBI regulation. Perfect for promoting thrift and savings among community members.

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Nidhi Companies Registered
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Key Highlights

No RBI Registration Required
Accept Deposits from Members
Provide Loans to Members Only
Regulated by MCA (Not RBI)

What is a Nidhi Company?

A Nidhi Company is a special type of Non-Banking Financial Company (NBFC) recognized under Section 406 of the Companies Act, 2013. The word "Nidhi" means "treasure" in Hindi, and these companies are formed with the main objective of cultivating the habit of thrift and savings amongst its members.

Unlike other NBFCs that are regulated by the Reserve Bank of India (RBI), Nidhi Companies are governed by the Ministry of Corporate Affairs (MCA) under Nidhi Rules, 2014. This exemption from RBI regulation makes it easier to start and operate a Nidhi Company.

Nidhi Companies operate on a mutual benefit basis - they can only accept deposits from their members (shareholders) and provide loans to the same members. They cannot deal with non-members or the general public, making them a closed community of savers and borrowers.

Key Features of Nidhi Company

Members Only Transactions

Deposits and loans restricted to members/shareholders only

No RBI Regulation

Governed by MCA under Nidhi Rules, not by RBI

Mutual Benefit

Operates for mutual benefit of all members

Thrift & Savings

Primary objective is promoting savings habit

Limited Operations

Cannot issue preference shares, debentures, or chit funds

Geographical Restriction

Can operate only in districts where registered office is located

Benefits of Nidhi Company Registration

No RBI Approval

Exempted from complex RBI registration process

Easy to Start

Lower capital and simpler compliance than other NBFCs

Accept Deposits

Can accept savings, recurring, and fixed deposits

Provide Loans

Offer secured and unsecured loans to members

Limited Liability

Members' liability limited to their shareholding

Separate Legal Entity

Company has its own legal identity

Community Building

Promotes financial inclusion in local community

Tax Benefits

Eligible for various deductions under Income Tax Act

Minimum Requirements for Nidhi Company

At Incorporation

Minimum 7 Members (Subscribers)
Minimum 3 Directors
Minimum Paid-up Capital: ₹10 Lakhs*
Name must end with 'Nidhi Limited'
Registered Office in India
Objects: Thrift & Savings Only

*₹5 Lakhs as per recent amendments (subject to notification)

Within 1 Year

Minimum 200 Members
Net Owned Funds: ₹20 Lakhs minimum
NOF to Deposits Ratio: 1:20
Unencumbered Deposits: 10% of total
File NDH-1 Form with ROC
Apply for Nidhi Status Declaration

Nidhi Company Registration Process

1

Obtain DSC & DIN

Apply for Digital Signature Certificate and Director Identification Number for minimum 3 directors

2

Name Reservation

Reserve unique name ending with 'Nidhi Limited' through RUN service on MCA portal

3

Draft MOA & AOA

Prepare Memorandum and Articles with objects for thrift, savings, and mutual benefit

4

SPICe+ Form Filing

File incorporation form with documents of 7 subscribers and 3 directors

5

Certificate of Incorporation

Receive COI with CIN indicating 'Nidhi Limited' from Registrar of Companies

6

Post-Incorporation Compliance

Achieve 200 members and file NDH-1 within one year for Nidhi status declaration

What You Get

Certificate of Incorporation
Company PAN Card
Company TAN Number
Memorandum of Association (MOA)
Articles of Association (AOA)
Director Identification Numbers
Digital Signature Certificates
Share Certificates for Members
Statutory Registers
Compliance Calendar
NDH-1 Filing Support
Post-Registration Guidance

What Nidhi Company Cannot Do

✗Accept deposits from non-members
✗Provide loans to non-members
✗Issue preference shares
✗Issue debentures or bonds
✗Open current accounts for members
✗Deal in chit fund business
✗Undertake hire purchase financing
✗Deal in insurance or leasing business
✗Acquire securities by another company
✗Advertise for soliciting deposits

Deposit & Loan Rules

Deposits

Fixed Deposits: 6 to 60 months
Recurring Deposits: 12 to 60 months
Savings Deposits: Allowed
Max Deposit: ₹15 Lakhs per member
Interest Rate: As per Board decision
Minimum maturity: 3 months for RD

Loans

Secured Loan: Max ₹15 Lakhs
Unsecured Loan: Max ₹2 Lakhs
Gold Loan: Up to 80% of gold value
Interest Rate: Max 7.5% above deposit rate
Loan against deposits: Allowed
Property as collateral: Permitted

Annual Compliance for Nidhi Company

NDH-1 (Half Yearly Return)

Within 90 days of each half year

Return of statutory compliances with member, deposit, and loan details

NDH-2 (Application for Extension)

As required

Apply for extension of time if unable to meet 200 member requirement

NDH-3 (Half Yearly Return)

Within 30 days of half year end

Details of deposits and loans outstanding

NDH-4 (Cover Deficiency)

When NOF falls below requirement

Filing for covering deficiency in Net Owned Funds

Annual Return (MGT-7)

Within 60 days of AGM

Yearly return with company and member details

Financial Statements (AOC-4)

Within 30 days of AGM

Balance sheet, P&L, and auditor's report

Income Tax Return

30th September

ITR filing as per Income Tax Act provisions

Why Register Nidhi Company with Saarthium?

Expert CA & CS Professionals
100% Online Process
Dedicated Relationship Manager
Complete MOA & AOA Drafting
Quick Registration (15-20 Days)
NDH Form Filing Support
Post-Registration Compliance Help
300+ Nidhi Companies Registered

Nidhi Company is Ideal For

Community Savings Groups
Employee Welfare Societies
Housing Societies
Cooperative Credit Groups
Self-Help Groups (SHGs)
Local Financial Inclusion
Rural Credit Societies
Women Empowerment Groups
Professional Associations

Important Points to Remember

⚠️

Must achieve 200 members within 1 year - failure leads to consequences

⚠️

Net Owned Funds to Deposits ratio must be maintained at 1:20

⚠️

Cannot open branches outside the district of registered office initially

⚠️

Advertising for deposits is strictly prohibited

⚠️

All directors must be members of the company

⚠️

Annual audit by qualified Chartered Accountant is mandatory

Quick Information

Processing Time15-20 Working Days
Documents Required
PAN Card of Directors (Min 3)
Aadhaar Card of Directors
Passport Size Photos
Address Proof of Directors
Registered Office Proof
NOC from Property Owner
Utility Bill (Recent)
Bank Statement of Directors
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Frequently Asked Questions

What is a Nidhi Company?
A Nidhi Company is a type of Non-Banking Financial Company (NBFC) formed to cultivate the habit of thrift and savings amongst its members. It belongs to the non-banking Indian financial system and can accept deposits from and lend money to its members only. Nidhi means 'treasure' in Hindi.
What are the minimum requirements for Nidhi Company?
Nidhi Company requires minimum 7 members (subscribers) including 3 directors, minimum paid-up equity share capital of ₹10 Lakhs (₹5 Lakhs as per recent amendments), must use 'Nidhi Limited' as suffix, and must achieve minimum 200 members within one year of incorporation.
Does Nidhi Company require RBI approval?
No, Nidhi Company does not require RBI approval or registration. It is specifically exempted from RBI regulations and is governed by Ministry of Corporate Affairs (MCA) under Nidhi Rules, 2014. This makes it easier to start compared to other NBFCs.
Can Nidhi Company accept deposits from public?
No, Nidhi Company can only accept deposits from its members who are shareholders of the company. It cannot accept deposits from general public, advertise for deposits, or provide loans to non-members. Only mutual benefit transactions are allowed.
What is the maximum interest rate Nidhi Company can charge?
Nidhi Company can charge maximum 7.5% per annum above the highest rate of interest on deposits offered by the company. For example, if highest deposit rate is 10%, loan rate can be maximum 17.5%. All rates must comply with Nidhi Rules, 2014.
What are the compliance requirements for Nidhi Company?
Nidhi Company must file annual returns, maintain Net Owned Funds (NOF) to deposits ratio of 1:20, ensure unencumbered term deposits of minimum 10% of deposits, file NDH-1 to NDH-4 forms, and comply with all provisions of Nidhi Rules, 2014.

Related Services

Private Limited Company

Standard company structure for business operations

LLP Registration

Partnership with limited liability benefits

GST Registration

Tax registration for your Nidhi Company

Ready to Register Your Nidhi Company?

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