Nidhi Company is a type of Non-Banking Financial Company (NBFC) that deals with borrowing and lending money between its members. It's ideal for creating a mutual benefit fund for a defined group.
Features of Nidhi Company
- Members-only transactions
- Mutual benefit organization
- Promotes savings habit
- Low-cost credit to members
- RBI exemption from NBFC rules
Requirements
- Minimum 7 members required
- Minimum paid-up capital: ₹5 lakhs
- Must add "Nidhi Limited" in name
- Net Owned Funds ratio of 1:20
Benefits
- No RBI license required
- Lesser compliance than NBFC
- Can accept deposits from members
- Can provide loans to members
- Tax benefits available
Documents Required
- PAN and Aadhaar of all directors (minimum 7)
- Address proof of directors
- Registered office address proof
- Digital Signature Certificates
- Consent to act as director
Registration Process
- Obtain DSC for directors
- DIN for all directors
- Name approval with "Nidhi Limited"
- File SPICe+ form
- Certificate of Incorporation
- Meet post-incorporation requirements within 1 year
Time Required: 15-20 working days
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