Nidhi Company Registration

Register a Nidhi Company under the Companies Act, 2013 — a mutual benefit society focused on promoting thrift and savings among its members

Nidhi Company

What is a Nidhi Company?

A Nidhi Company is a type of non‑banking finance company (NBFC) that operates on the principle of mutual benefit. Governed by the Companies Act, 2013 and the Nidhi Rules, 2014, it is formed for the purpose of cultivating the habit of thrift and savings among its members. It can accept deposits and lend money only to its members.

Advantages

  • Simple registration and lower compliance compared to an NBFC.
  • Exempt from many RBI regulations applicable to NBFCs.
  • Encourages savings and provides loans to members at reasonable rates.
  • Perpetual succession and limited liability for members.
  • No minimum capital requirement (though a minimum net owned fund of Rs. 10 lakhs is to be maintained).

Key Requirements

  • Minimum 7 members at the time of incorporation.
  • Minimum 3 directors.
  • The name must end with "Nidhi Limited".
  • Must have the objective of promoting thrift and savings among its members.
  • Must maintain a net owned fund of Rs. 10 lakhs within one year of incorporation.
  • Must ensure that the number of members reaches at least 200 within one year.

Documents Required

  • PAN card and address proof of all directors and members.
  • Passport‑size photographs.
  • Digital Signature Certificate (DSC) of the directors.
  • Director Identification Number (DIN) of the directors.
  • Proof of registered office (rent agreement, utility bill, NOC from owner).
  • Proposed name (with suffix "Nidhi Limited").

Important Timeline

A Nidhi company must have at least 200 members and a net owned fund of Rs. 10 lakhs within one year of incorporation. Failure to comply may result in the company not being allowed to accept further deposits.

Register Your Nidhi Company

We'll handle the incorporation process and ensure compliance with all regulatory requirements.

Our Nidhi Company Incorporation Process

Simple, transparent, and fully compliant.

1. Name Reservation

We check availability and apply for the name with the suffix "Nidhi Limited".

2. DSC & DIN

We obtain Digital Signature Certificates and Director Identification Numbers for the proposed directors.

3. SPICe+ Filing

The integrated incorporation form is filed with the ROC along with MOA and AOA.

4. Post‑Incorporation Compliance

We guide you on achieving the required membership count and maintaining the net owned fund.

Frequently Asked Questions

Everything you need to know about Nidhi companies

A Nidhi company is formed to promote the habit of thrift and savings among its members. It accepts deposits and lends money only to its members, functioning like a mutual benefit society.
Nidhi companies are regulated by the Ministry of Corporate Affairs (MCA) under the Companies Act, 2013 and Nidhi Rules, 2014. They are exempt from many RBI regulations applicable to NBFCs, but must still comply with certain prudential norms.
There is no minimum paid‑up capital required at the time of incorporation. However, the company must maintain a net owned fund (NOF) of Rs. 10 lakhs within one year of incorporation, and the NOF to deposit ratio must be adhered to.
No. A Nidhi company can accept deposits only from its members. It cannot accept public deposits or undertake any chit fund, hire‑purchase, or investment activities.
If the company fails to attain 200 members within one year, it may be restricted from accepting further deposits until the requirement is met. The ROC may take action for non‑compliance.