A Nidhi Company is a type of Non-Banking Financial Company (NBFC) recognized under Section 406 of the Companies Act, 2013, whose core business is borrowing and lending money among its own members. Popular in community and mutual-benefit financial circles, Nidhi Companies allow members to cultivate a habit of savings and provide loans to each other at reasonable interest rates, without the heavy regulatory overhead that applies to full-fledged NBFCs regulated by the RBI.
Key requirements: minimum 7 members and 3 directors at incorporation, minimum Net Owned Fund (NOF) of Rs. 10 lakh, at least 200 members within one year, and an NOF-to-deposits ratio of 1:20. A Nidhi Company cannot carry on chit fund, hire purchase, leasing, or insurance business.
Having these documents prepared in advance keeps your incorporation with the Registrar of Companies smooth and avoids delays.
Answers to the questions we hear most often about Nidhi Company registration in Delhi NCR.
Digitax Consultancy was founded on April 1, 2011, by Vishwa Jeet Dwivedi and Amit Kumar Jha, two visionaries with a passion for simplifying financial services.
