Quick Summary
What is Nidhi Company Registration? Planning to start a finance business the Nidhi Company is the best suitable business structure for an early-stage startup. The young entrepreneurs who want to enter the finance business, we suggest registering Nidhi Company. Nidhi Company is also a type of NBFC
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FAQ :
A Nidhi Company is a type of Non-Banking Financial Company (NBFC) registered under the Companies Act, 2013, specifically designed for early-stage finance businesses. Its main purpose is to accept deposits from and provide loans to its members.
You need a minimum of 7 members and a minimum paid-up capital of Rs. 5 lacs to register a Nidhi Company. A minimum of 3 directors are also required.
Yes, the Nidhi Company registration process is completely online and is approved by the Ministry of Corporate Affairs (MCA).
A Nidhi Company can accept Savings Deposits, Recurring Deposits (RD), and Fixed Deposits (FD) exclusively from its members.
The maximum interest rate on deposits cannot exceed 12% per annum (6% for savings accounts). For loans, the maximum interest rate is capped at 20% per annum using the reducing balance method.
Key post-registration compliances include maintaining a minimum of 200 members within one year, a minimum capital of INR 10 lacs within one year, and adhering to specific ratios like NOF to Deposits (1:20). Annual filings with MCA and income tax returns are also mandatory.
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