Structured Biiz

NIDHI LIMITED COMPANY

Nidhi Companies are formed in order to take deposits and lend money to its members only. Nidhi Companies are formed with the main 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. Nidhi Company Name shall always end with “Nidhi Limited” and they need to be incorporated with a minimum equity share capital of Rs. 5 Lac.

Though the activities of a Nidhi Company are just like NBFC (taking deposits and lending money), they are allowed to deal with its members (shareholders) money only. Reserve Bank of India has granted exemption to Nidhi Companies from the core provisions of the RBI and other regulations applicable to a NBFC. Details provided herein in the Notification – https://rbidocs.rbi.org.in/rdocs/notification/PDFs/14935.PDF.

As per Section 406(1) of the Companies Act, 2013, Nidhi or “Mutual Benefit Society” means a Company which the Central Government may, by notification in the Official Gazette, declare to be a Nidhi or Mutual Benefit Society, as the case may be.

Nidhi Companies need to be compliant with Section 406 of the Companies Act, 2013 and the the Nidhi Rules, 2014 – https://www.mca.gov.in/Ministry/pdf/NCARules_Chapter26.pdf.

Limit on accepting deposits

A Nidhi shall not accept deposits exceeding 20 times of its Net Owned Funds (NOF) as per its last Audited Financial Statements. Every application form for accepting deposits from its Members must contain the information as specified in Rule 12 of the Nidhi Rules, 2014.

Duration of Deposits

Fixed Deposits

Recurring Deposits

Rate of Interest

Savings Deposits Account

Fixed & Recurring Deposits

Un-encumbered Term Deposits

Limits on loans & rate of interest on the loan to its members

Nidhi Companies are formed in order to take deposits and lend money to its members only. Nidhi Companies are formed with the main 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. Nidhi Company Name shall always end with “Nidhi Limited” and they need to be incorporated with a minimum equity share capital of Rs. 5 Lac.

Nidhi Companies can have branches

Basic requirements of Nidhi Limited Company

Every Nidhi needs to ensure that it has

General restrictions on a Nidhi Limited Company

Company Formation Package

INR 34,799/-*

All inclusive

Timeline: 30-40 Days
*Inclusive of Govt. Fees on Form filing. Govt Fees is as applicable in Maharashtra. Govt Fees will vary as per the State and the Govt. Fee over and above the amount mentioned herein above shall be payable by the Client.

Request you to provide 2 Unique Names of the Company. In case the name approval is not granted in the first instance, Govt Fee of Rs. 1,000/- and Our Fee of Rs. 999 shall be charged separately for re-application of name.

Post Formation Compliance Package

INR 30,999/-*

Inclusive of GST

*Excluding Govt. fee and reimbursements, if any. However, any Penalty levied due to delayed filing to be borne by the Company. Dematerialisation Fee Charged By RTA And Depository Shall Be Charged Separately.