Nidhi Company is a type of Non-Banking Financial Company (NBFC). It is formed to borrow and lend money to its members. It inculcates the habit of saving among its members and works on the principle of mutual benefit
Registration Fee
₹40,899/-
- Registration on MCA V3 Portal
- Obtain Digital Signature Certificate (DSC)
- Apply for Director Identification Number (DIN)
- Fill Part-A of SPICe+ Form
- Provide Documents of Directors and Shareholders
- Fill Part-B of SPICe+ Form
- File Other Relevant Forms (SPICE-AOA, SPICE-MOA, and AGILE-PRO)
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About Nidhi Company Registration Online
A Nidhi Company is a type of non-banking financial institution in India. It is formed primarily to cultivate the habit of thrift and savings amongst its members. Nidhi companies are incorporated under the Companies Act, 2013 and are regulated by the Ministry of Corporate Aairs. They are essentially mutual benefit societies, where the members contribute to a common fund, which is then lent back to the members as loans. These companies are different from other NBFCs (Non-Banking Financial Companies) as they deal exclusively with their shareholders or members.
Nidhi companies are popular among small savers and those who cannot access traditional banking services. They offer small loans to members at relatively low interest rates compared to other financial institutions. However, they are subject to certain restrictions and regulations to ensure the protection of their members’ interests and to prevent misuse of funds.
Advantage Of Nidhi Company
- No RBI License Required:
Unlike other NBFCs, Nidhi companies do not need a license from RBI. They are regulated by the Ministry of Corporate Affairs (MCA), simplifying the registration process with fewer document requirements.
- Mutual Benefits:
Nidhi companies operate for the mutual benefit of their members. They offer a platform for members to deposit excess funds and provide quick loans whenever needed, fostering a close relationship between the company and its members.
- Limited Capital Requirement:
Nidhi companies can be formed with a paid-up share capital of just Rs. 10 lakhs, whereas other NBFCs require significantly higher capital. This makes it easier to start a Nidhi company with limited capital.
- No Limit on Members:
As Nidhi companies must be incorporated as public companies, there’s no limit on the maximum number of members they can have. This allows for scalability as the company grows.
- Secured Loans:
Nidhi companies only grant loans against security like gold, fixed deposits, and immovable property, minimizing the risk of default and ensuring the company’s financial stability.
- Professional Management:
Nidhi companies are typically managed by finance professionals or experts in the field, enhancing credibility and ensuring efficient management.
- Lower Risk:
Since Nidhi companies deal primarily with their members, there’s minimal involvement of external parties, reducing the risk of external factors affecting the company’s operations.
- Simplified Compliance:
Nidhi companies enjoy relaxation under various provisions of the Companies Act, 2013, making compliance easier. The Nidhi Rules, 2014, are less stringent, further simplifying regulatory requirements for these companies.
Documents Required for Nidhi Company Registration
- Proposed Name of company
- Proposed Object
- Details of the Directors :
- PAN, Aadhar, Photo
- Mob Number, Email ID
- Bank statement with Name and Address – Not Older Than 2 Months
- Driving License / Voters id/Passport (Identity Proof)
- Digital signature
- Documents for Registered office:
- Rental Agreement between Company and Landlord
- Building address with pin code
- Building owner name and address with pin code
- Mob Number & Email ID of Company
- NOC from Landlord
- Building tax receipt
Registration Procedures
Registration on MCA V3 Portal:
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Click on ‘Sign In/Sign Up’ on the homepage.
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Choose User Category as Business User and select User Role.
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Fill in required details and create the account.
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Verify via OTP sent to your mobile number.
Obtain Digital Signature Certificate (DSC):
Directors need a DSC containing vital information like name and address.
Apply for Director Identification Number (DIN):
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Obtain DIN through SPICe+ for up to three directors.
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For additional directors without DIN, file Form DIR-3.
Fill Part-A of SPICe+ Form:
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Reserve company name and provide details including type, category, etc.
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Submit Part-A and choose to apply for name reservation separately if required.
Provide Documents of Directors and Shareholders:
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Submit proof of identification and address for directors and shareholders.
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Provide proof of registered office of the company.
Fill Part-B of SPICe+ Form:
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Fill in details of company capital structure, registered office, subscribers, etc.
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Attach required documents.
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Submit Part-B of SPICe+ form.
File Other Relevant Forms (SPICE-AOA, SPICE-MOA, and AGILE-PRO):
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Fill in details in e-form SPICE-AOA.
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Submit necessary forms related to interpretation, share capital, board of directors, etc.
Frequently Asked Questions
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What is a Nidhi Company?
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What are the main activities of a Nidhi Company?
A Nidhi Company mainly deals with accepting deposits from its members and providing loans to its members. It is a mutual benefit society.
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What is the minimum Authorised capital for Nidhi Company?
Minimum Capital requirement to register a NIDHI is Rs. 10, 00,000
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Can a Limited Liability Partnership (LLP) convert into a Nidhi Company?
No, a Limited Liability Partnership (LLP) cannot convert into a Nidhi Company, as Nidhi Companies must be incorporated as public limited entities with member-focused operations
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Can a Nidhi Company accept deposits from the general public?
No, a Nidhi Company can only accept deposits from its members and not from the general public.