Nidhi Company Registration – A Quick Guide
A Nidhi Company is a member-based non-banking financial entity incorporated under the Companies Act, 2013 and governed by the Nidhi Rules, 2014. It promotes savings and financial discipline by accepting deposits and granting loans exclusively to its members.
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What Is a Nidhi Company?
A Nidhi Company is a type of NBFC formed under Section 406 of the Companies Act, 2013, to foster a culture of savings and mutual benefit among its members. It accepts deposits and provides loans only to its members, building financial security within a close-knit community.
Purpose of Nidhi Companies
Nidhi Companies promote responsible financial habits by accepting deposits and offering loans exclusively within their membership. Though classified as NBFCs, they are exempt from most RBI regulations, operating under a member-centric model and the Nidhi Rules, 2014.
Key Requirements
• At least 7 members and 3 directors at incorporation • Maximum 200 members • Minimum paid-up capital of ₹10 lakhs • Net Owned Funds (NOF) of ₹20 lakhs within 120 days • Maintain ≥10% of deposits as unencumbered term deposits • NOF to deposits ratio ≤ 1:20 (excluding intangible assets & accumulated losses) • Fixed deposits ≥10% of total deposits in a nationalized bank
Benefits of Registering a Nidhi Company
- Simple, cost-effective formation process - Minimal RBI compliance requirements - Low financial risk: transactions only among members - Encourages savings and financial discipline - Self-reliant funding model using net-owned funds
1. Documents Required for Registration
• Photographs of promoters and members
• PAN & identity proof (Aadhaar, Passport, Voter ID, or DL)
• Address proof (latest utility bill or bank statement)
• Business premises proof & NOC (if rented)
• Property deed or rent agreement
• DIR-2 consent to act as director
• DSC & DIN of all directors
• Director specimen signatures
• Subscriber sheet signed by shareholders
• Company registration questionnaire
Step-by-Step Registration Process
1. Obtain DSC & DIN for directors (skip if already held).
2. Draft MOA & AOA defining objectives and governance.
3. Apply for name approval via SPICe+ Part A (submit 3 name options).
4. File SPICe+ Part B with incorporation details and documents.
5. Receive Certificate of Incorporation (COI) with CIN.
6. Within 120 days, meet member (200) & NOF (₹20L) requirements.
7. File Form NDH-4 to obtain formal Nidhi status (extension via Form NDH-2 if needed).
Mandatory Compliance
• File Form NDH-1 annually within 90 days of FY end.
• File Form NDH-3 (half-yearly returns) with CA/CS certificate.
• Hold quarterly Board meetings & annual AGM.
• File AOC-4 & MGT-7 annually.
• Maintain statutory books of accounts.
• File Income Tax Return by September 30 each year.
• Ensure locker rental income <20% of total income.
Registration Fees
Government fees for DIN, DSC, SPICe+ filing, and statutory forms typically range from ₹10,000 to ₹15,000 (ex-GST), excluding professional charges.
Timeline for Nidhi Company Registration
The process generally takes 30–45 days, depending on document readiness and online form approvals.
Total Estimated Time
30–45 days
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