In its more recent context in the Indian financial sector it refers to any mutual benefit society notified by the Central / Union Government as a Nidhi Company. They are created primarily for the motive of cultivating the habit of thrift and savings among their members and generally it is in the form of Public Company. Nidhi Company is one of the categories of Non-Banking Financial Company (NBFC) that does not require any Reserve Bank license.

1. Director:

• Minimum no. of directors required are 3 out of which 1 shall be Indian Resident.
• Any person can be a director of the company including family members
• Director Identification No. (DIN) and Digital Signature Certificate (DSC) are required to be a director of the company
• Directors are the managers and they are responsible for day to day functioning of the Company.

2. Shareholder:

• Minimum no of shareholders required are 7.
• Director and Shareholders can be the same.
• Shareholders are the owners of the company

3. Capital:

• There are 2 types of capital i.e. Authorize Capital (It is the capital up to which company is authorize to raise from the member and it can be increase as and when required.), Paid Up Capital (It is the capital which is paid up by the members of the company and it can be increase as and when required.)
• There is no such requirement for minimum capital, hence the company can be formed with the capital starting from INR 1.

4. Registered Office:

• Any place can be made as the registered office of the company even the residential place can be used as the registered office of the company.

5. Registering Authority:

• Ministry of Corporate Affairs

Note:

1. Not Less than 200 Members: After incorporation, a Nidhi company must add at least 200 members to comply with this requirement of law. Further, it has to maintain this during the course of time. If the total members falls less than 200 at any time thereafter, it will leave the company at default. However, are not able to reach the limit of 200 members, then you must apply for time within 30 days of closure of financial year in Form NDH-2 with Regional Director

2. Net Owned Funds shall be INR 10 Lakhs.

3. Unencumbered term deposits of not less than 10% of the outstanding deposits.

4. A Nidhi Company shall not admit a body corporate or trust as a member.

5. A minor shall not be admitted as a member of Nidhi Company.

1. Obtain DSC (Digital Signature Certificate)
2. Prepare SPICe+ form (Part A – Name availability and reservation request)
3. Prepare SPICe+ Part B form (Company information i.e. directors, capital etc.)
4. Prepare e-form SPICe+ MOA (INC-33) ,SPICe+ AOA (INC-34) and SPICe+ AGILE-PRO (INC-35)
5. Download all the e-forms prepare online and affix DSC on all the e-forms.
6. Attached the require documents with form SPICe+ and upload the e-forms to MCA portal.
7. Verification of documents / forms by RoC

8. Issue of Certificate of Incorporation by RoC

Advantages

 1.LIMITED RBI REGULATIONS
2.LIMITED CAPITAL REQUIREMENT
3.EASE OF FORMATION
4.HELP IN CHANNELIZING SMALL SAVINGS
5.LOWER RATE OF CREDIT
6.NO OUTSIDER INTERVENTION

Disadvantages

 1.LIMITED FUND RAISING
2.LIMITED CREDIT AVAILABILITY
3.FALLS UNDER RBI VIGILANCE
4.OTHER REGULATIONS