Nidhi Company can only do business of accepting deposit and lending money to its members only. It cannot deal with the public directly and can only work with its members. However, one can easily make members under Nidhi Company with few documents and easy process. Also, Nidhi Company registration is the only form of company available to start the loan company in India without RBI approval.

Nidhi Company can open three branches after three years of working within the district. Further, to open any branch outside the district, the company shall require RD approval. Furthermore, the Nidhi Company cannot work outside the state. Hence, if you want to expand your business to another state, then you will need to register another Nidhi Company.

It only requires 7 person with easy documents requirement to start the Nidhi Company. The minimum capital requirement for Nidhi Company registration is Rs.5 lakh.

BENEFITS OF NIDHI COMPANY

• • Nidhi Company do not require RBI registration to do loan business in India
• • Nidhi Company can earn max 20% interest on loan on reducing balance method
• • Nidhi Company can accept FD, RD & savings and can earn 12% rate of interest
• • Nidhi Company can open 3 branches after 3 years within the district
• • Nidhi Company can lend only against gold, property, FD, Govt securities
• • Nidhi Company can deal with its members only & has to make min 200 members
• • Nidhi Company cannot do micro finance business & vehicle finance business

SERVICE INCLUDES

• • Name Application Through RUN (Reserve Unique Name)
• • Digital Signature of Directors
• • DIN No Application
• • PAN & TAN
• • Drafting MOA & AOA
• • Incorporation Through Spice Forms
• • Bank A/c Opening Guidance
• • Certificate of Commencement of Business