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NIDHI COMPANY

₹ 28,999 (+ GST) 

WHAT IS NIDHI COMPANY?

Nidhi Company is a Non-Banking Financial Company (NBFC). It is formed to borrow and lend money to its members. It inculcates the

habit of saving among its members and works on the principle of mutual benefit. These companies typically operate within the southern region
of the country. Nidhi Company isn’t required to procure a license from the Reserve Bank of India (RBI), hence it's easy to create .

ACTIVITIES PROHIBITED IN A NIDHI COMPANY

Nidhi Company can’t engage with chit funds, hire-purchase finance, leasing finance, insurance or securities business. It is strictly prohibited from accepting deposits from or lending funds to, any other individual except members. Also, it can’t advertise itself to invite any deposits.

NUMBER OF MEMBERS

Minimum of seven members is required to start a Nidhi Company out of

which three members must be the administrators/directors of the company.

SHARE CAPITAL AND OWNERS' FUNDS

A minimum of 5 lakh rupees, is required as the equity share capital to start a Nidhi Company. Nidhi Company can’t issue preference shares.

Documents required for registration:

  1. Proof of the registered place of business (Ownership documents/ rent or lease agreement)

  2. No Objection Certificate (signed by the owner/ landlord)

  3. Identity proofs

  4. Address proofs of the members

  5. Photos of the members

  6. PAN card copies of the members

  7. Digital Signature (DSC)

  8. Director Identification Number (DIN) of the directors

  9. Memorandum of Association of the company (MoA)

  10. Articles of Association of the company (AoA)

  11. Only one object must be mentioned in MoA of the company: “cultivating the habit of thrift and savings amongst its members, receiving deposits from, and lending to, its members only, for their mutual benefit...”

  12. Copy of Property papers (If owned property)

  13. Landlord NOC (Format will be provided)

MINIMUM REQUIREMENTS BEFORE INCORPORATION

01

Minimum 7 shareholders

04

DIN for all Directors

02

Minimum 3 Directors

03

Minimum Capital

of Rs. 5 Lacs

05

Valid documents required for Nidhi Company Registration

POST-COMPLIANCE OF NIDHI COMPANY

Once successful registration of the Nidhi Company is confirmed, these requirements must be complied with
to avoid cancellation of your registration or penalties.
Minimum number
of 200 Shareholders
Unencumbered deposits must not be below 10% of the outstanding deposits
Net owned Fund shall not be shall not be below Rs. 5 Lacs
Net owned funds to deposits ratio should be not above 1:20
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