Nidhi company falls under the category of NBFC or Non-Banking Fincance Company. The key motive behind the formation of Nidhi companies is to lend or borrow money to its members so that it is win situation for both the lenders and the borrowers. Such companies have made their base in the southern region of India. The good part is that you don’t need RBI’s (Reserve Bank of India) liscence to form your Nidhi company. Nidhi companies are registered as public company where “Nidhi Limited” has to be added at the end of the company name.

Process of registering a Nidhi company

Although registration procedure of a Nidhi company is quite easy, still, you may require professional assistance to fill the tricky forms within the deadline. Govt portals are always difficult to understand, you see, and on top of that, the govt terminologies are also headache. Therefore, let us understand the steps involved in the incorporation procedure of a Nidhi company.

• KYC of every director or shareholder – Minimum 3 directors and 4 members are required for the formation of a Nidhi company. Members can also be directors. Maximum 3 members can become directors withoput DIN numbers.
• Digital Signature – DSC is a basic requirement for the registration process of a NIdhi company. Personal details like mobile number and email id and KYC like PAN, ADHAAR, passport size photo need to be provided.
• Name Approval – An unique name has to be selected as already registered name will not get approval.