What is a Nidhi Company?
A Nidhi Company is a unique type of Non-Banking Financial Company (NBFC) that facilitates borrowing and lending exclusively among its members. It promotes savings within a community and does not require a license from the Reserve Bank of India (RBI), making it an attractive option for small-scale financial activities.
Requirements to Start a Nidhi Company
- Minimum of 7 members
- Minimum of 3 directors
- Minimum equity capital of ₹10 lakh
- At least 200 members within one year of incorporation
- Net owned funds of ₹10 lakh
Documents Required for Registration
- PAN and Aadhaar of all members
- Proof of registered office address
- Passport-size photographs of directors
- Digital Signature Certificate (DSC) of directors
Benefits of Nidhi Company Registration
Nidhi Companies offer numerous advantages such as minimal regulatory requirements, lower capital investment, and the ability to foster financial cooperation among members. They are ideal for communities looking to promote savings and provide loans without the complexities of traditional banking.