A Nidhi Company is a Non-Banking Financial Company (NBFC) recognized under Section 406 of the Companies Act, 2013 and governed by the Nidhi Rules, 2014.
Its core objective is to promote savings and thrift habits among its members and carry on the business of lending and borrowing only with its members.
✅ Unlike other NBFCs, a Nidhi Company does not require RBI approval to start operations, making it a preferred option for community-based financing.
Encourages Saving Among Members :
Promotes financial discipline through member-only lending and borrowing.
No RBI License Required :
Nidhi Companies operate without RBI interference, reducing regulatory burdens.
Perpetual Existence :
Nidhi Companies have 'perpetual succession', i.e., continued or uninterrupted existence until legally dissolved. Being a separate legal person, they are unaffected by the death or departure of any member.
Cheaper Credit :
Members can borrow at relatively low interest rates compared to banks.
Easy Transferability :
Shares of Nidhi Companies limited by shares are transferable by a shareholder to any other person via a simple share transfer form and certificate.
Owning Property :
Nidhi Companies, being juristic persons, can acquire, own, enjoy, and transfer property in their own name.
Limited Liability :
Members are legally responsible only to a limited extent for debts of the Nidhi Company, unlike in partnerships or proprietorships.
Nidhi Company Incorporation –
G K B & Associates can incorporate a Nidhi Company in 14 to 20 days, subject to ROC processing time.
Obtaining DSC & DIN –
Digital Signature Certificate (DSC) and Director Identification Number (DIN) are required for the proposed Directors. These can be obtained within 2-3 days.
Name Approval –
Submit one or two proposed names for RUN (Reserve Unique Name) through MCA. Name approval can be secured in 2–3 business days, subject to guidelines.
Company Incorporation –
Incorporation documents are submitted to the MCA. Approval typically takes 5–7 days depending on processing times.
Minimum 200 members
Net Owned Funds (NOF) of at least ₹10 lakhs
Unencumbered term deposits of 10% of outstanding deposits
Ratio of net owned funds to deposits not more than 1:20
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