Nidhi Companies are registered Limited Companies involved in taking deposits and lending to their members. The activities of a Nidhi Company does fall under the purview of Reserve Bank of India, as it is similar to an NBFC. However, as Nidhi Companies ONLY deal with shareholder-members money, RBI has exempted Nidhi Companies from the core provisions of the RBI and other regulations applicable to an NBFC.
Registering as a Nidhi Company offers many benefits. It helps:
Here’s everything you need to know:
A minimum of seven members, with at least three of them designated as directors.
The company must acquire a minimum of 200 members within one year from the date of commencement.
A minimum share capital of INR 5 lakhs is required for registration.
The Net Owned Funds (NOF) should be increased to INR 10 lakhs within one year from the date of registration.
At least 10% of the company's outstanding deposits should consist of unencumbered term deposits.
The prescribed ratio of NOF to deposits should be 1:20, wherein 10% of the total deposits must be held in a fixed deposit account with a nationalized bank.
Director's ID Proof (Aadhaar Card, Voter ID, Passport, or Driver's License)
Address Proofs (Latest one-month Savings Bank statement, Telephone Bill, Mobile Bill, or Electricity Bill in the director's name)
Director's latest passport-size photograph
Director's Email IDs
For Foreign Directors: International Passport (mandatory)
Registered Office Address Proof (Latest Power Bill)
No-objection letter from the Landlord
Rental Agreement (if the premises are rented)
Company Email ID
Company Registration Steps:
Step 1: Reserve the company's name
Step 2: Gather the required documents for directors and the company's registered office
Step 3: Obtain a Digital Signature Certificate (DSC)
Step 4: Draft the Memorandum of Association (MoA) and Articles of Association (AoA)
Step 5: Apply for the incorporation of the company
Step 6: Await approval of the company's registration
LLP Registration Steps:
Step 1: Reserve the LLP's name
Step 2: Collect the necessary documents for partners and the LLP's registered office
Step 3: Procure a Digital Signature Certificate (DSC)
Step 4: Submit the application for the incorporation of the LLP
Step 5: Await approval of the LLP's registration
Step 6: Prepare the LLP Deed
Step 7: File the LLP Deed
- Expertise and Experience: We have years of expertise and experience in Nidhi company registration as well as trust registration in India
- Comprehensive Services: We offer comprehensive services covering all aspects of Nidhi company registration, i.e. documentation, compliance, and filing. We also offer a trademark registration service.
- Legal Knowledge and Compliance: Our team has a good understanding of the legal framework and compliance requirements related to Nidhi companies.
- Support and Assistance: We offer great support and assistance throughout the registration process.
- Transparent Pricing: We offer clarity on the costs involved and ensure there are no hidden charges.
A Nidhi company is a type of non-banking financial institution in India that promotes savings and lending activities among its members for their mutual benefit.
Requirements to register a Nidhi company include a minimum of seven members (with three directors), INR 5 lakhs of share capital, and compliance with Nidhi Rules, 2014 guidelines for Net Owned Funds (NOF) and deposit ratios.
The time required to register this type of company can vary, but it typically takes around 30 to 45 days.
The cost to start a Nidhi company can vary depending on various factors, such as registration fees, professional fees, compliance costs, and capital requirement.
No, a Nidhi company in India can only accept deposits from its members and cannot accept deposits from the general public.
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