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Nidhi company is a kind of Non-Banking Financial Company aka NBFC. Because of the benefits Nidhi Company offers it is also called as Mutual Benefit Finance Company. Like every company, Nidhi Company also consists of few annual compliance popularly known as Nidhi Company Compliances. The statutory compliances related to Nidhi Company are disclosed in Nidhi Rules 2014 and the Companies Act 2013.

Provisions of the Section 406(1) of the Companies Act, 2013 defines the Nidhi Company as “A company which has been incorporated as a Nidhi with the object of cultivating the habit of thrift and savings amongst its members, receiving deposits from, and lending to, its members only for their mutual benefit.

Nidhi Company is the perfect choice for those who want to indulge in lending business with minimum fund investment.

Compliances help in forming exact insights about the company’s working performance.
It is necessary for every company which is registered under the Companies Act 2013 to file for the compliances.
Moreover Nidhi Company falls under the category of public company hence in order to protect the interest of its stakeholders it becomes compulsory for the Nidhi Company to follow the compliances.

• Pre-incoporation Compliances
• Post-incorporation Compliances
• Event-based Compliances

Easy Formation:


1. A total of 7 persons where 3 will be appointed as Director can form a Nidhi Company

2. Hassle free registration process

3. Will take 10-15 days to register

Cost Efficient Registration


Rs 5,00,000 is the minimum capital requirement for registration of Nidhi Company. The company also provide the opportunity to invest the capital within 2 months once the registration is done.

No RBI Regulations


Though Nidhi Company falls under the criteria of NBFC but they do not need any approval from RBI. Nidhi Rules, 2014 are drafted for such companies to regulate their activities and working performance.

High level of certainty in Nidhi Company


The primary motive of Nidhi Company is to boost the habit of savings amongst its member. Hence, Nidhi Company can be counted as long term investment as its members will not stop savings anytime.

Less level of Risk


The level of risk involved in the Nidhi Company is minimal due to its nature of accepting deposit and providing loans to its members as stated in Nidhi Rules 2014. It is a trust worthy and secured way of granting loan also loans provided to members are at a very less rate.

Necessary compliances to be followed are:

Minimum of seven members can form a Nidhi Company out of which three are appointed as Directors of the company
Nidhi Company can come into existence with a minimum share capital of Rs 5, 00,000.
In case preference shares are issued they are to be redeemed as per the same terms of the issue.
A minor cannot considered as the member of Nidhi Company
Company must have “Nidhi Limited” in its name.
Minor cannot be a member of a Nidhi Company
A trust or a corporate body cannot be the member of Nidhi Company
Can't acknowledge the store of over 20% of Net Owned Funds.
Nidhi Company can't open branches in case it fails to earn any profit after assessment for sequential three money related years.
The rate of interest on the credit will not surpass 7.5% over the most noteworthy pace of intrigue offered on deposits.

The number of members should not be less than 200 within one year of its incorporation
The Net possessed Fund ought to be Rs. 10 lakh or more.
The proportion of Net-possessed Funds to the stores must not surpass 1:20.
As mentioned in Rule 14 of the Nidhi Rules, 2014, the stores ought not be under 10% of the outstanding deposits.
Support of Books of Accounts.
Keep up the legal Registers.
Gather Statutory Meetings.

The nature of annual compliance is periodic in nature. Often these compliances are presented annually hence they are needed to be filed after regular intervals of time.

The purpose of these compliances is to give a clear picture of the work status and performance of Nidhi Company during a period.

It is necessary for Nidhi Company to meet all the compliance as mentioned in the Companies Act 2013 as well as in Nidhi Rules 2014.