The term Nidhi Originated from a Hindi word that means treasure. The literal meaning of Nidhi is finance or treasure. It is a mutual benefit society and is created for the mutual benefits of its members, it is beneficial as it allows group lending and borrowing. The members of the company made deposits and these deposits are used to give secure loans to the members of Nidhi companies, Add reasonable interest rate is charged upon the members. This saves the members of the Nidhi company from the exploitation of money lenders as they charge high-interest rates and this helps the members of Nidhi companies develop the habit of saving and self-reliance. There is a difference between Nidhi companies and NBFC. Nnbfc engages in the business of loans and advances, acquisition of debentures, bonds, stop, shares, securities issued by the government or local authority or any other marketable securities, insurance business, chit business, higher purchase, leasing. But an idiot company does not carry on businesses of Yes, purchase finals, chit fund, insurance, or acquisition of securities issued by any corporate body.
One can easily form a Nidhi company and it is a very easy process. Nidhi company should have 3 members who are directors out of 7 members. It does not require a license from RBI and it hardly takes 5 to 10 days to get itself registered. There aren’t many documents that are required for the registration of the Nidhi company.
Documents that are required are ownership documents or rent or lease agreement which is a proof of registered place of business. A no-objection certificate needs to be produced that has to be signed by the landlord or the owner. The identity proofs and address proof of the members are required for registration. The photos of the members as well as the pan card copies of the members of Nidhi company will be required for registration. Are digital signature, director identification number of the directors, memorandum of association of the company, Articles of Association of the company are the documents that need to be submitted. Memorandum of Association should have only one object that needs to be mentioned that is cultivating the habit of the trip and saving among its members, receiving the deposits from and lending to, its members only for their mutual benefits.
Two forms need to be filed to form Nidhi company that is INC- 9 and this form needs to be filed by all the subscribers to the memorandum of Association and another form that needs to be filed is DIR-2 and this form has to be filed by all the directors of the company and should be signed by all the subscribers.
There should be at least 200 members in Nidhi company within one year of commencement and the net owned fund should be 10,00,000 or more. The ratio of net own fund to deposit should not be more than 1:20 And the term deposit must be 10% or higher of the outstanding deposit. When the company satisfies all 4 conditions it will file NDH-1 Within 90 days from the end of the first year. Through the submission of NDH- 2 to the regional director within 30 days from the end of the first financial year extension of another financial year can be obtained. If all 4 conditions are not fulfilled even after the second financial year then the company cannot accept deposits it complies with all the provisions.
The capital that is required for the registration is very less and the capital requirement for the registration of Nidhi company is only 5,00,000. it also has some exemptions Add privileges under the Companies Act, 2013.

This Article Does Not Intend To Hurt The Sentiments Of Any Individual Community, Sect, Or Religion Etcetera. This Article Is Based Purely On The Authors Personal Views And Opinions In The Exercise Of The Fundamental Right Guaranteed Under Article 19(1)(A) And Other Related Laws Being Force In India, For The Time Being.