Nidhi Company is a company registered under the Companies Act, 2013, with an objective of cultivating the habit of thrift and savings amongst its members. Nidhi companies are allowed to take deposit from its members and lend to its members only.
Nidhi company is a class of NBFCs and RBI is empowered to issue directions to them in matters relating to their deposit acceptance activities.
Nidhi company is incorporated as a public company hence a minimum of seven shareholders are required. However Nidhi limited should have atleast two hundred members within a year to avoid being in default.
Minimum three and maximum 15 directors are required for a Nidhi conpany.
Within one year of incorporation, Nidhi company should have Net Owned Funds (capital invested) not less than ten lakh.
In that case, Company will have to apply for extension with the Regional Director of the company in the Form NDH – 1.
Nidhi company shall within one year of its commencement shall ensure that it has minimum of two hundred members, net owned funds of ten lakh rupees or more and unencumbered term loan deposits of not less than 10% of the outstanding deposits and ratio of net Owned Funds to deposits of not more than 1:20.
Yes, according to rule 6, no Nidhi company shall carry on the business of chit funds, hire purchase, leasing finance, insurance or acquisition of securities issued by any body corporate, issue preference shares or open any current account with its members, accept deposits from or lend to any person, other than its members, take deposits from or lend money to any body corporate, etc.
Yes, according to rule 8, no Nidhi company shall admit a body corporate or trust as a member. A minor shall also be not admitted as a member.
Yes, Nidhi company can open branches if it has net profit after tax continuously during preceding three financial years. It can open more the three branches within the district ir any branch outside district after obtaining prior approval of the Regional Director.
No, you needn’t be available in person, Nidhi company incorporation process is online. A scanned copy of documents can be sent to us via mail, and we will handle the rest.