Nidhi Companies Having following Features.

  • It is Non- Banking Financial Company under the purview of RBI though it will not be governed under stringent guidelines.
  • It will be a public company and shall have a minimum paid up equity share capital of five lakh rupees.
  • The primary object of Nidhis has been to carry on the business of accepting
  • Deposits and lending money to member-borrowers only against jewels, etc., and mortgage of property.
  • It Requires minimum 3 Directors & 7 share holders
  • A Nidhi shall not accept deposits exceeding twenty times of its Net Owned Funds (NOF) as per its last audited financial statements.
  • Every Company incorporated as a “Nidhi” shall have the last words ‘Nidhi Limited’ as part of its name
  • No Nidhi shall issue preference shares.
  • No Nidhi shall have any object in its Memorandum of Association other than the object of cultivating the habit of thrift and savings amongst its members, receiving deposits from, and lending to, its members only, for their mutual benefit.

Mandatory for Nidhi Companies

Within the Period of One Year from the date of commencement, it should have

  • Minimum 200 Members
  • Net Owned Fund should be Minimum 10 Lakh
  • Unencumbered term deposits of not less than ten per cent
  • Ratio of Net Owned Funds to deposits of not more than 1:20.


  • Ideal way for getting into Financial Services Industry
  • All landings to members will be secured lending
  • Can accept deposits.


  • Lending only to Members
  • No carry on the business of chit fund, hire purchase finance, leasing finance, insurance or acquisition of securities issued by any- body corporate
  • Issue preference shares, debentures or any other debt instrument by any name or in any form whatsoever
  • Open any current account with its members;
  • Acquire another company by purchase of securities or control the composition of the Board of Directors.
  • Cannot run micro finance
  • Cannot invest in any company
  • No advertisement allowed
  • Unsecured loans, i.e. it cannot extend loan based upon surety, guarantee, ITR based etc.
  • No Micro finance work can be done under Nidhi Company and no vehicle loans, etc.
  • A Nidhi cannot pay commission to leverage deposits.
  • A Nidhi cannot invest in land, in other companies, in stock market etc.

Time for Registration

It takes around 30 to 45 days to complete the company registration process subject to MCA approvals.


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