What is a Nidhi Company?
A Nidhi Company is a type of Non-Banking Financial Company (NBFC) that promotes thrift and savings habits among its members. It functions like a mutual benefit society where members can borrow and deposit money amongst themselves at reasonable interest rates.
Governed by Section 406 of Companies Act, 2013 and Nidhi Rules, 2014, these companies are exempt from RBI's NBFC regulations. Nidhi Companies are popular in South India and are an excellent way to build a community-based savings and credit system.
Benefits of Nidhi Company
No RBI License
Exempt from RBI's NBFC regulations. No license required from RBI.
Attractive Interest
Can offer higher interest on deposits and lower rates on loans to members.
Community Building
Promotes financial inclusion and mutual help among community members.
Simple Operations
Easier compliance compared to NBFCs. Focus on member services.
Limited Liability
Members enjoy limited liability protection like any company.
Secured Lending
Loans given against gold, property, FD, or other securities.
Requirements for Registration
Minimum 7 Subscribers
At least 7 members required at the time of incorporation
Minimum 3 Directors
At least 3 directors with one being an Indian resident
200 Members within 1 Year
Must have minimum 200 members within one year of incorporation
₹10 Lakh Net Owned Funds
Must have minimum ₹10 Lakhs NOF within one year
₹20 Lakh Deposits
Must have minimum unencumbered deposits of ₹20 Lakhs within 1 year
Name Must Include "Nidhi Limited"
Company name must end with "Nidhi Limited"
Documents Required
For Directors/Members
- PAN Card
- Aadhaar Card
- Passport Size Photo
- Address Proof (Utility Bill)
- Bank Statement
- Email & Mobile Number
For Registered Office
- Rent Agreement / Ownership Proof
- NOC from Property Owner
- Latest Utility Bill
- Property Tax Receipt
Registration Process
Obtain DSC & DIN
Digital Signature and Director ID for all 3 directors
Name Reservation
Reserve name ending with "Nidhi Limited" through RUN
Draft MoA & AoA
Prepare with Nidhi-specific object clauses
SPICe+ Filing
File incorporation form with subscriber sheet
Certificate of Incorporation
Receive CoI with CIN, PAN, and TAN
NDH-4 Filing (within 1 year)
File declaration of compliance with Nidhi Rules
Our Pricing
Basic
+ Govt. Fees
- Nidhi Incorporation Registration
- 3 DSC Tokens
- 3 DIN
- Name Approval
- Nidhi MoA & AoA
- PAN & TAN
- Certificate of Incorporation
Standard
All Inclusive
- Everything in Basic
- Government Fees Included
- Nidhi Software (1 Year)
- Member Forms & Templates
- Loan Agreement Templates
- Statutory Registers
- NDH-4 Filing Support
Frequently Asked Questions
Can Nidhi Company accept deposits from non-members?
No, Nidhi Companies can only accept deposits from and lend money to their members. Non-members must first become members (by purchasing shares) before they can deposit or borrow money.
What types of loans can Nidhi Company give?
Nidhi Companies can provide loans against gold and silver jewellery, immovable property, fixed deposits with the Nidhi, and government securities. Unsecured loans can be given up to ₹2 Lakhs.
What is the maximum interest rate Nidhi can charge?
The maximum interest rate on loans cannot exceed 7.5% above the highest rate of interest offered on deposits. If the highest deposit rate is 10%, the maximum lending rate would be 17.5%.
Can Nidhi Company have branches?
Yes, Nidhi Companies can open branches, but only within the district where the registered office is located initially. After 3 years, it can expand to adjoining districts. Maximum 3 branches in 3 districts are allowed.