NIDHI Company

Nidhi is a Hindi word, which means finance or fund. Nidhi company registration requires minimum 3 members. All the Nidhi company’s incorporated shall have the last word as “Nidhi Limited” as part of its name. Loan from Nidhi Company has lower interest rates and minimum documentation & formalities are required so it is helpful for poor, lower and middle classes

Perpetual Succession- Nidhi Company goes on and on until it is legally dissolved. As private limited company is having separate legal identity, so it is unaffected by the death or other exit of any member and continues to be in existence irrespective of any changes in ownership.
Nidhi company is type of NBFCs and RBI is empowered to issue directions to them for deposit acceptance activities. However, as Nidhi\’s deal with their shareholder-members only, RBI has exempted the notified Nidhi\’s from the core provisions of the RBI Act and other directions applicable to NBFCs.
Management- The Board of Management of a Nidhi company can be easily altered by filing forms with the Registrar of Companies. Board controls the activities of the Nidhi Company.
Since Nidhi company gives a loan to its members, only if members provide some securities such as Gold, jewellery, properties, FD, NSC etc., so in case of non-repayment of loan they can be sold and there are very less chance of NPA or bad debt
Minimum Members and capital: It must not have less than 200 members and net owned fund should be INR 10 lakhs
Net owned funds to deposits ratio should be more than 1:20 and Unencumbered deposits of not less than 10% of the outstanding deposits should be there

Connect with us

Mera Compliance

Expert-Guided Setup | Fast, Affordable & 100% Online!

Documents Required for Private Limited Company

These are the documents required for company incorporation for each director/ shareholder

Self-Attested PAN Card copy
Self-attested copy of any one of the Identity Proof like Driving License, Passport, and Voter ID & Aadhaar Card
Self-attested copy of any one of the Address Proof like Bank Pass Book/ Bank Statement, Telephone Landline Bill, Mobile Bill & Electricity Bill

4 Passport Size Photographs.
Company Address proof Electricity Bill, Telephone Bill, Mobile Bill & Gas Bill, AND Rent Agreement (if rented) AND NOC for doing Business & for taking Registration.