Nidhi Company Registration Requirement in India


To form a Nidhi company in India, you will have to incorporate a limited company, under the company act 2013. With at least 3 directors and 7 shareholders, a Nidhi Company can be formed. However, precautions must be taken as to make sure that the aim of the company is encouraging savings among its members. The borrowing and lending of the money among the members only for their mutual benefit.
After the Nidhi company Registration, it should have the following:-
  1. At least 200 of the shareholders.
  2. The net owned funds by the Nidhi Company must be at least 10 lakhs or more.
  3. The net owned fund ratio of deposits must be 1:20.

Advantages of Nidhi Company Registration?

  • There are institute offices that are single and have no outside interference.
  • There must be mutually beneficial societies building a habit of saving between their involved members and work for the benefit of their depositing and borrowing members.
  • Deposits are usually much lesser than handled by the other institutions in financial sectors.
  • The term deposit is accepted by the members of only for a period of safe returns. It wouldn’t require any RBI license.
  • This should provide easy loans to the involved members. The repayments are limited to just one year and 7 years, against the immovable property or the jewelry as their security. The less rate of interest is charged as compared to the bank loans.

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