“Nidhi” is a Hindi word, which means finance or fund. Nidhi means a company which has been incorporated with the object of developing the habit of thrift and reserve funds amongst its members and also receiving deposits and lending to its members only for their mutual benefit...

What is Nidhi - Mutual Benefit Company ?

Nidhi Company, is one that belongs to the non-banking Indian finance sector and is recognized under section 406 of the Companies Act, 2013. Their core business is borrowing and lending money between their members. They are also known as Permanent Fund, Benefit Funds, Mutual Benefit Funds and Mutual Benefit Company. They are regulated by Ministry of Corporate Affairs. Reserve Bank of India is empowered to issue directions to them in matters relating to their deposit acceptance activities. However, in recognition of the fact that these companies deal with their shareholder-members only....

Nidhi companies existed even prior to the existence of companies Act 1913. The basic concept of nidhi is "Principle of Mutuality" ("Paraspara Sahayata"). Thus they function for the common benefit advantage of all their members/share holders. Nidhi companies are more popular in South India, and 80% of Nidhi companies are located in Tamil Nadu.

How To Register A Nidhi Company?
  • Incorporate a Public Ltd. Company with minimum paid up equity share capital of Rs. 5,00,000 with the sole object of lending and borrowing within the members.
  • Company must be incorporated with ‘Nidhi Ltd.’ as last words in their name.
  • Company should ensure that it has minimum 200 members,Rs. 10,00,000 or more of Net Owned Funds, maximum ratio of N.O.F to Deposit 1:20,debt free term deposits of not less than 10% of the outstanding deposits, etc. Company is then required to file after the close of the first financial year NDH-1 or NDH-2 within 90 days or 30 days with ROC or RD respectively.
Applicability For Nidhi Company?

The Central Government made ‘ Nidhi Rules, 2014 ’ for the purpose of carrying out the objectives of ‘Nidhi’ companies. These rules shall be applicable to-

  • Every company which had been declared as a Nidhi or Mutual Benefits under Section 620A(1)of Companies Act, 1956;
  • Every company functioning on the lines of a Nidhi company or Mutual benefit society but has either not applied for or has applied for and is awaiting notification to be a Nidhi or Mutual Benefit Society under Section 620A(1)of Companies Act, 1956;
  • Every company incorporated as a Nidhi pursuant to the provisions of Section 406of the Companies Act, 2013.

  Requirements To Register A Nidhi Company
  • A Nidhi company to be incorporated under this Act shall be a Public Company;
  • It shall have a minimum paid up equity share capital of Rs.5,00,000/-;
  • No preference shares shall be issued.
  • If preference shares had already been issued by a Nidhi Company before commencement of this Act, such preference shares are to be redeemed in accordance with the terms of issue of such shares;
  • The object of the company shall be cultivating the habit of thrift and savings amongst its members, receiving deposits from and lending to its members only for their mutual benefits;
  • It shall have the words ‘Nidhi Limited’ as part of its name;

Why you have to need of Nidhi Company Software? What is Nidhi Software

Nidhi Company Software that will automate your business processes, making your organisation more effective and responsive, and saving you time and money. Nidhi Company Software is created to meet your specific needs. It can be both cheaper than off-the-shelf software solutions and, of course, far more powerful. You can reduce the hours needed to perform time-intensive management and administrative tasks, improving efficiency, driving out cost and increasing profitability. We follow enterprise wide quality policy which is defined and measurable. Our process and methodologies are constantly monitored, updated to keep pace with the new innovations in technology and customer's needs. Nidhi software is extremely useful and user-friendly and is beneficial for any financial institutions who are into Nidhi business.

The software is fully customised providing the business with each and every tool it wants for its smooth functioning. Nidhi software can be integrated with real time Mobile, SMS and Email systemNidhi Software is an online web application built especially for Nidhi Company with automatic posting of business data to accounts module.

We have developed Nidhi Software with continuous research in Nidhi or Mutual Benefit Fund with guidance of all experienced people, who are running such institutions. We studied exact and practical working of Nidhi along with the common problems faced by these organizations, and on the basis of this analysis and research we have developed this software. Nidhi Software is developed by our vast experienced professionals with full data security. It helps you in concentrating on your marketing and customer management activities by speeding up your work and reducing your operational time. It is fully customizable and can be integrated with real time Mobile, SMS and Email system. Nidhi software is simple and easy to understand. A person can master nidhi company software in very less time with basic computer knowledge.


Want to see a demo of Nidhi Software? Tell us a little bit about you and Nidhi Company and we'll be in touch. To complete this process Fill out the form to schedule a Nidhi Company Software demo request for your specific marketing needs. Any immediate assistance, CALL US - 9719991111.

Request a FREE DEMO NIDHI SOFTWARE Whether you want Creative Website designing and Custom Web development Services India. Adysoft have a solution for it.