1. Minimum Members at Incorporation

A Nidhi Company must be registered as a public limited company under the Companies Act, 2013.

At the time of incorporation, the company must have at least 7 members.

Out of the 7 members, a minimum of 3 must be appointed as directors.

These members act as subscribers to the Memorandum and Articles of Association.

The initial members must provide required identification and capital contribution documents.

2. Post-Incorporation Membership Requirement

Within one year of incorporation, the Nidhi Company must reach at least 200 members.

This is a statutory requirement as per Rule 5 of the Nidhi Rules, 2014.

Failure to achieve this membership count may lead to regulatory consequences.

Companies unable to meet this must apply for an extension by filing NDH-2.

The Registrar may reject the extension request if compliance is not justified.

3. Eligibility for Membership

Only individual persons are eligible to become members of a Nidhi Company.

Entities such as companies, trusts, or firms are not allowed as members.

A person must apply for membership by purchasing a minimum number of equity shares.

Members must agree to abide by the company’s rules and deposit terms.

Only registered members can place deposits or receive loans from the company.

4. Admission Procedure for New Members

Prospective members must submit an application form along with KYC documents.

The Board of Directors reviews and approves the membership application.

Upon approval, shares are allotted, and the name is recorded in the member register.

The person becomes eligible for participation in the company’s financial activities.

The company must maintain proper records of all members admitted.

5. Compliance and Reporting of Membership

The company must file Form NDH-1 annually to declare compliance with member limits.

Half-yearly filing through NDH-3 includes details of members and transactions.

All member records must be kept updated for audits and inspections.

If the member requirement is not fulfilled, the company may face penalties or cancellation.

Accurate tracking of member count is essential for continued Nidhi Company status.