A Nidhi company is a public company formed to cultivate the habit of thrift and savings among its members, and to receive deposits and lend only to members. It is not a bank and it cannot deal with non-members. The law also expects you to reach a minimum number of members and a ratio of net-owned funds within the first year. We incorporate it only after walking you through those conditions.
Who this is for
- Groups that understand Nidhi rules and can gather the minimum members
- Mutual-benefit savings circles that want a company form
Documents usually needed
- KYC and DSC of at least three directors and seven subscribers
- Registered office proof
- Declared objects limited to Nidhi activity
How Digital Filings handles it
- Check that the promoters can meet the member test.
- Incorporate as a Nidhi.
- Give you the first-year compliance list: members, deposits ratio and filings.
Timeline
Incorporation timing is similar to a public company. Meeting the one-year Nidhi conditions is your operating job after that.
Questions people ask
Can a Nidhi take deposits from the public?
No. Deposits and loans stay inside the membership, and they are subject to the Nidhi rules on limits and tenors.
Official reference: MCA. Always confirm the live rule on that portal.