• Objects: Nidhi means a company which can give loan to its members and also can take deposit from its members. Only secured loans can be given. Security can be immovable property, FD, RD, gold loan etc.

• Directors : require to appoint minimum 3 directors to run the company.

• Members : Can be Incorporated with minimum 7 members.

• Capital: Also require to have minimum Paid up capital of Rs. 500000/- (Five lakh rupees).

• Public Limited: Nidhi will be public limited company as we can make member to anyone but loans and deposits can be from members only not general public.

• Compliances : Compliances are high in Nidhi as compare to other private company. and also some requirements must full fill within 1 financial year of incorporation.

1. Name Approval - Unique Name Require

2. Create a digital signature certificate 

3. Obtain Director Identification Number (DIN)

4. Incorporation Procedure - Incorporation forms, MOA & AOA

5. Get Certificate of Incorporation, PAN, TAN

1. PAN and AADHAR of Directors and members

2. Copy of utility bills (not more than two months);

3. Proof of office address (conveyance/lease deed/rent agreement with receipts);

4. Proof of identity and address of directors and members; (Voter Id/driving License and Bank statement/Passport of directors/subscribers)

5. Share Capital Distribution sheet

6. Passport size photo of Directors & Members

7. Stamp paper ( Depends)

Generally time varies from 10 to 20 working days and also it depends upon availability of proper documents on time by client.

Advantage

• Tax benefit 

• Transparency 

• Can Accept Deposit and Give Loan

Disadvantage

• High Compliance formalities

• Winding up may be time-consuming and complicated. 

• Their are some restrictions on Nidhi company that it cannot advertise for its business, can transact only with members(loans/Deposits), cannot issue preference shares, debentures etc 

• No finance on vehicle and unsecured