Nidhi Company

Nidhi Company in India is a type of Non-Banking Financial Company (NBFC) primarily involved in the business of lending and borrowing among its members. It primarily works for the mutual benefit of its members by encouraging savings and providing loans within its members' community. Here is an overview of a Nidhi Company.

Process of Registering a Nidhi Company:

Incorporation as a Public Limited Company: A Nidhi Company needs to be registered as a public limited company under the Companies Act, 2013.

Minimum Capital Requirement: A Nidhi Company should have a minimum paid-up equity share capital of Rs. 5 lakhs.

Application for Nidhi Status: After incorporation, the company needs to apply to the Ministry of Corporate Affairs (MCA) for Nidhi status.

Compliance Requirements: Nidhi Companies need to comply with various rules and regulations set by the MCA for their operations, including maintaining specific ratios for deposit and lending activities among members.

Restrictions: Nidhi Companies are restricted from engaging in certain activities, such as issuing preference shares, debentures, or accepting deposits exceeding certain limits set by the MCA.