Nidhi Company is a company registered under Companies Act and notified as a Nidhi company by Central Government under Section 620A of Companies Act, 1956. It is a non-banking finance company doing the business of lending and borrowing with its members or shareholders.They are created mainly for cultivating the habit of thrift and savings amongst its members.

• A Nidhi company shall be incorporated under this Act as a Public Company.
• Minimum paid up equity share capital of 5,00,000/-.
• No preference shares shall be issued.
• The object of the company shall be cultivating the habit of thrift and savings amongst its members, receiving deposits from and lending to its members only for their mutual benefits.
• It shall have the words ‘Nidhi Limited’ as part of its name.
• Nidhi’s are more popular in South India and are highly localized single office institutions.
• A Nidhi company shall do business of borrowing from members and lending to members only.

• Minimum number of members should be 200.
• Net owned funds shall be Rs.10,00,000/- or more.
• Ratio of net owned funds to deposit shall be not more than 1:20.
• Unencumbered term deposits of not less than 10% of the outstanding deposits  as specified in Rule 14.

• Rs.2,00,000/- where the total amount of deposits from members is less than Rs.2 crores.
• Rs.7,50,000/- where the total amount of deposits from its members more than Rs.2 crores but less than Rs.20 crores.
• Rs.12,00,000/- where the total amount of deposits from its members is more than Rs.20 crores but less than Rs.50 crores.
• Rs.15,00,000/- where the total amount of deposits from its members is more than Rs.50 crores.

It is very easy to register this type of business as very few documents are needed. The required documents include:

1.  PAN card (Copy) of all the Directors
2. Adhaar card (Copy) of all the Directors
3. Passport size photo of all the Directors
4. Voter id/ Driving Licence/ Passport
5. Bank statement of all Directors
6. Proof of Address(Power bill, Municipal tax bill, Sale deed copy)
7. Rental Agreement or NOC

Registration of Nidhi Company takes the shortest time and can be completed within a min. of 7-10 working days. Despite registration taking the shortest time possible, this solely depends on government procedures and approvals during the time of your registration.

The Government’s registration fee starts at Rs.1900 while professional fees start at Rs.15000 and the variance would depend based on the type of business, number of employees and location of the business and even the requirements to be met while registering your particular business.