A Nidhi Company is a unique type of Non-Banking Financial Company (NBFC) that operates on the principle of mutual benefit among its members. Registered under the Companies Act, 2013 and regulated by the Ministry of Corporate Affairs (MCA), Nidhi Companies focus on cultivating savings habits and providing affordable loans exclusively to their members.
"Nidhi Company is the trusted financial structure that promotes savings culture and provides accessible credit facilities to its members through mutual cooperation."
Our expert team provides complete Nidhi Company registration services including name approval, incorporation, and compliance support. We help you meet all regulatory requirements and establish your member-based financial institution successfully.
Member-based financial growth with regulated and transparent operations.
A Nidhi Company is a type of Non-Banking Financial Company (NBFC) registered under Section 406 of the Companies Act, 2013. It operates on the principle of mutual benefit, accepting deposits only from its members and providing loans exclusively to them. Nidhi Companies are regulated by the Ministry of Corporate Affairs (MCA) and are exempt from RBI regulations, making them an excellent option for community-based savings and lending operations.
To register a Nidhi Company, you need a minimum of 7 shareholders (all Indian citizens or residents), at least 3 directors (with at least 1 being a resident of India), minimum paid-up equity share capital of ₹5 lakhs, and minimum 200 members within one year of incorporation. Additionally, the company must maintain a Net Owned Fund (NOF) to deposit ratio of 1:20 and have unencumbered term deposits of at least 10% of outstanding deposits.
Nidhi Companies can accept Fixed Deposits (minimum 6 months to maximum 60 months), Recurring Deposits (minimum 12 months to maximum 60 months), and Savings Deposits from their members only. The maximum interest rate on deposits is capped at 2% above the highest rate offered by nationalized banks. Nidhi Companies cannot accept deposits from non-members, corporate bodies, or trusts.
Nidhi Companies must file Form NDH-1 (application for Nidhi declaration) within 120 days of incorporation, Form NDH-2 if unable to achieve minimum members/NOF, and Form NDH-3 (half-yearly return) within 30 days of each half-year. Annual compliance includes filing Annual Return (MGT-7), Financial Statements (AOC-4), Income Tax Returns, and conducting AGM within 6 months of financial year-end. Regular statutory audits and maintenance of prescribed registers are also mandatory.
Key benefits include exemption from RBI regulations (unlike other NBFCs), lower compliance costs compared to banks, ability to operate multiple branches without RBI permission, tax benefits available to financial institutions, and building trust within local communities. Nidhi Companies promote the habit of thrift and savings among members, offer competitive interest rates on deposits and loans, and provide a legal framework for mutual benefit societies to operate as registered financial entities.
