Nidhi Company
Price - 9999/- + Govt. Fee Extra
A Nidhi Company is a type of non-banking financial company (NBFC) that is primarily engaged in the business of
borrowing and lending money to its members. The concept of Nidhi Companies is rooted in Indian tradition, where such
entities were established for the benefit of their members, often within local communities.
Key Features of Nidhi Companies:
Purpose:
Mutual Benefit: Nidhi Companies are created to foster the habit of saving among their members and to provide
financial assistance to them, mainly in the form of loans.
Regulation:
Governing Act: Nidhi Companies are governed by the Companies Act, 2013 under Section 406 and related rules. The
Ministry of Corporate Affairs (MCA) oversees their regulation.
Not a Bank: Nidhi Companies are not considered banks and do not require a banking license from the Reserve Bank of
India (RBI). They operate under specific regulations that are distinct from traditional banking institutions.
Membership:
Minimum Members: A Nidhi Company must have at least 7 members at the time of incorporation and at least 200 members
within one year of its incorporation.
Membership Limitation: Membership is generally limited to individuals, and entities like partnerships and
corporations are not typically allowed to become members.
Share Capital:
Minimum Capital: There is no fixed minimum capital requirement for Nidhi Companies, but they must maintain a
certain level of net owned funds as prescribed by regulations.
Activities:
Borrowing and Lending: Nidhi Companies can accept deposits from and lend to their members. They are not allowed to
engage in other types of financial activities, such as trading or investment in securities.
Restrictions: Nidhi Companies are restricted from accepting deposits from non-members or from the public at large.
Management and Governance:
Directors: A Nidhi Company must have at least 3 directors.
Annual General Meetings: The company is required to hold Annual General Meetings (AGMs) and file annual returns
with the Registrar of Companies (ROC).
Compliance Requirements:
Regulatory Filings: Nidhi Companies must file various documents and returns with the ROC, including annual
financial statements and compliance reports.
Audit: They must conduct an annual audit of their financial statements.