Nidhi Finance Company

Nidhi Company Registration

A Nidhi Company is a public limited company which is formed with the sole purpose of accepting deposit and lending money only to its members. It is also a Non-Banking Financial Company (NBFC) which has been exempted from the provisions of RBI.

To start a Nidhi Company in India the first step is to incorporate a Limited Company, under the Companies Act, 2013. Hence, a minimum of three Directors and seven shareholders will be required to start the Limited Company incorporation process. During incorporation of the Nidhi company, care must be taken to ensure that the object of the Limited Company mentioned in the Memorandum of Association is that of cultivating the habit of thrift and savings amongst its members, receiving deposits from, and lending to, its members only, for their mutual benefit.

Minimum requirements before nidhi company incorporation

• Minimum 7 shareholders
• Minimum 3 Directors
• Minimum Capital of Rs. 10 lacs
• DIN for all directors

Minimum requirements before nidhi company incorporation

• Minimum number of 200 Shareholders
• Net owned Fund shall not be less than Rs. 10 Lacs
• Unencumbered deposits of not less than 10% of the outstanding deposits
• Net owned funds to deposits ratio should be more than 1:20

Documents required for Nidhi Company Registration for directors/shareholders

• Copy of PAN Card
• Aadhar Card
• Address Proof (Bank Statement, Mobile bill, Telephone bill)
• Passport Size Photo
• For Registered Office

Ownership Proof

• Utility Bill (Gas bill, Electricity bill)
• NOC
• Address Proof (Bank Statement, Mobile bill, Telephone bill)