Nidhi Company

A Nidhi company is a type of non-banking financial company (NBFC) in India, primarily engaged in the business of accepting deposits from and lending to its members. It operates on a mutual benefit basis, aiming to promote thrift and savings among its members. Nidhi companies are regulated by the Ministry of Corporate Affairs and must adhere to specific rules set out in the Companies Act, 2013.

Features

Member-Based

It operates primarily for the benefit of its members. Only members can deposit money and avail of loans.

No External Investments

Nidhi companies are not allowed to invest in other businesses or in the securities market. They can only use their funds to provide loans to their members.

Deposit Acceptance

It can accept deposits from its members only. It is not allowed to accept deposits from the public.

Minimum Capital Requirement

There is no specific minimum capital requirement, but the company must maintain a certain level of net owned funds as specified by regulatory guidelines.

Loan Provision

It provides loans to its members at reasonable interest rates.

Profit Distribution

Nidhi companies are not allowed to pay dividends or distribute profits to their members beyond what is necessary for the company’s operations.

Steps to register a Nidhi Company

1. Fill the contact form /make appointment

2. Initial Consultation with our experts

3. Documents Preparation.......

4. Process ahead with guidance

Relevant FAQs

What is the primary purpose of a Nidhi company?

A Nidhi company primarily aims to promote the habit of saving and thrift among its members and to provide them with loans at reasonable interest rates.