A Nidhi Company in India encourages thrift and savings among its members. It can borrow from and lend to its members, operating on a smaller scale than banks. Here's a simplified overview of Nidhi Company registration:

Overview:

• Nidhi Companies are registered Limited Companies that take deposits and lend to their members.
• They fall under RBI's purview but are exempt from some regulations applicable to NBFCs.

Restrictions on Nidhi Company:

• Cannot engage in chit fund, hire purchase finance, leasing finance, insurance, or acquire securities from any body corporate.
• Limited activities: borrowing, lending, and providing locker facilities to members.

Registration Process:

• Incorporate Your Business: Register as a Private Limited Company with a minimum of three Directors and seven shareholders.
• Define Objectives: Ensure the Memorandum of Association emphasizes cultivating thrift and savings.
• Post-Incorporation Criteria: Within a year, meet conditions like having at least 200 members and a Net Owned Fund of ₹10 lakh.
• Statutory Compliances: File Form NDH-1, certified by a CA/CS/CWA, within 90 days from the financial year's close.
• Extensions: If criteria aren't met, apply for an extension using Form NDH-2 within 30 days from the financial year's close.

Amendment Rules (2020):

• Revised forms, like NDH-1 and NDH-2, should be used for statutory compliances.
• Nidhi Company registration focuses on creating a platform for its members to save and lend among themselves.