Nidhi Company Registration & Compliance in India
📌 What is a Nidhi Company?
A Nidhi Company is a type of non-banking financial company (NBFC) recognized under Section 406 of the Companies Act, 2013, primarily formed to borrow and lend money among its members. The objective is to encourage the habit of savings among members and provide low-cost credit facilities.
Nidhi Companies are governed by the Nidhi Rules, 2014, and monitored by the Ministry of Corporate Affairs (MCA). Unlike banks or other NBFCs, Nidhi Companies cannot raise funds from the general public, engage in chit funds, insurance, hire purchase, or financial activities beyond lending to members.
📌 Key Features of a Nidhi Company
- Formed to encourage savings and mutual financial assistance among members.
- Must have minimum 7 members at incorporation and 3 directors.
- Operates as a public company under the Companies Act, 2013.
- Deposits can be accepted only from members, and loans can be provided only to members.
- Name must end with “Nidhi Limited”.
- Profits are used to pay interest on deposits and other member benefits.
- Adherence to Nidhi Rules, 2014 ensures proper fund management, member protection, and legal compliance.
📌 Eligibility Criteria
- Minimum 7 members and 3 directors at incorporation.
- Registered office must be in India with proof of ownership or NOC from the owner.
- Compliance with Nidhi Rules, 2014 regarding net owned funds (minimum ₹5 lakh), member limits, and lending/deposit ratios.
- Directors must have Digital Signature Certificates (DSC) and Director Identification Number (DIN).
📌 Documents Required
- Identity proof (PAN, Aadhaar, Passport, Voter ID) of directors and members.
- Address proof of directors and members.
- Proof of registered office (utility bill, rental agreement, or NOC).
- Memorandum of Association (MoA) and Articles of Association (AoA) drafted according to Section 406 of the Companies Act, 2013 and Nidhi Rules, 2014.
- Board resolutions authorizing director appointments and operational decisions.
📌 Advantages of a Nidhi Company
- Limited Liability: Liability of members is limited to the shares they hold.
- Encourages Savings: Provides a secure platform for members to deposit funds.
- Low Regulatory Burden: Simplified compliance under Nidhi Rules, 2014.
- Member-Centric Operations: Only members benefit from deposits, loans, and interest.
- Access to Low-Cost Loans: Members can access financial support at lower interest rates compared to commercial banks.
- Governance and Transparency: Mandatory bookkeeping, annual audits, and filings ensure compliance and transparency.
- Compliance with Law: Ensures adherence to Section 406 of the Companies Act, 2013, Nidhi Rules, 2014, and MCA regulations.
📌 Our Nidhi Company Services Include
- Incorporation & Licensing:
- Drafting MoA and AoA in compliance with Section 406 and Nidhi Rules, 2014.
- Filing incorporation forms with Registrar of Companies (RoC).
- Assisting with DIN, DSC, and director filings.
- Obtaining Certificate of Incorporation and registering with MCA.
- Post-Incorporation Compliance & Accounting:
- Bookkeeping, accounting, and maintenance of statutory registers in accordance with Companies Act, 2013.
- Filing annual returns and financial statements (Form AOC-4, MGT-7).
- Monitoring compliance with Nidhi Rules, 2014, including net owned fund, member limit, and deposit-to-loan ratios.
- Preparation of board meeting minutes, resolutions, and statutory reports.
- Support for internal audits and regulatory audits.
- Financial Management & Advisory:
- Guidance on accepting deposits and issuing loans within regulatory limits.
- Assistance in interest calculation, dividend allocation, and member benefits management.
- Structuring financial policies to comply with Section 406 of Companies Act, 2013, and Nidhi Rules, 2014.
- Advisory on improving member engagement, financial health, and sustainable operations.
- Governance & Risk Management:
- Ensuring compliance with all MCA regulations and applicable sections.
- Conducting risk assessments and advising on mitigating financial and operational risks.
- Representation before authorities in case of regulatory scrutiny or compliance queries.
📌 Why Partner With India Stat Filing
- Experienced professionals handling Nidhi Company registration, bookkeeping, compliance, and audit support.
- End-to-end support from incorporation to post-registration compliance.
- Accurate guidance on regulatory requirements under Companies Act, 2013 (Section 406) and Nidhi Rules, 2014.
- Transparent pricing and real-time updates on filings, compliance, and audits.
- Expertise in member-centric operations, deposit management, and statutory reporting.
📌 Our Commitment
India Stat Filing ensures your Nidhi Company is legally compliant, financially transparent, and professionally managed. From registration and document drafting to bookkeeping, audits, and statutory compliance, we manage all requirements so members can focus on mutual savings and financial growth.
📞 Get Started Today
Form your Nidhi Company with India Stat Filing for end-to-end registration, compliance, bookkeeping, and financial management with confidence, transparency, and regulatory adherence.