Nidhi Company Registration in India

“Nidhi” is a word of Hindi which means finance or fund. It is a type of non-banking financial company incorporated and registered under the company’s act, 2013 with the main aim of borrowing and lending money to its members. It develops the habit of saving among its members and works on the principle of mutual benefit.

Minimum three directors are needed for the registration of Nidhi Company. Nidhi company registration is very easy and it does not require RBI approval. Its registration is very economical too. All those companies which are incorporated as Nidhi Companies must use the last word as “Nidhi Limited” as part of its name. No background check is needed for the registration of Nidhi Company. Anybody can form a Nidhi company.

What Nidhi Company offers?

  • Minimum documentation and formalities
  • Safe and secure investments
  • Low rate of interest.
  • Useful for middle and lower classes.
  • No external involvement in management.

Documents Required for Nidhi Company Registration in India

  • Passport size photographs of directors.
  • Copy of Voter Id card/Aadhar card of directors.
  • Copy of Director’s PAN card
  • No objection certificate (NOC) from the landlord.
  • Water/Electricity Bill of the business place
  • Rent Agreement copy (if using rented property).
  • Copy of the Property papers (if property is owned by you)
What Is Included In Our Package?

Eligibility Consultation

Document Preparation

Application Drafting

Government Fees

Minimum Requirements for Nidhi Company Registration in India

Before Incorporation

  • Minimum 3 director
  • Minimum 7 shareholders
  • The director identification number (DIN) for all directors.
  • Minimum capital of Rs.5 lakhs

After Incorporation

  • Net owned funds to deposit ratio should be more than 1:20.
  • Minimum number of 200 shareholders
  • The net owned funds should not be less than Rs.10 lakhs.
  • Free debt deposits of not less than 10% of the outstanding deposits.

Concerns Related to Nidhi Company

  • Nidhi Company is highly dependent on the honesty, loyalty and integrity of its members and workers.
  • It fulfills the needs of the small and medium income groups only.
  • Lackluster or Uninspiring sales promotion.
  • Due to lack of funds, Professional managers are not hired and nidhi companies are managed by the amateurs.
  • Peoples may feel afraid in depositing funds in these companies as Nidhi companies does not require a license from RBI.

Benefits of Nidhi Company Registration

  • Minimum paid up share capital of Rs.5 Lakhs.
  • Ownership is easily transferred.
  • Tax benefits
  • Stamp duty is not required
  • Easy & economical
  • Privileges and Exemptions under the Companies Act, 2013.
  • Relaxation in compliance
  • Clear objectives for easy donations and loans

Step by Step Procedure for Nidhi Company Registration

Step: 1 Application of DPIN and DSC

Firstly, the partners of a Nidhi company needs to apply for DPIN and Digital signature. DPIN means the Directors PIN Number issued by the ministry of corporate affairs whereas Digital signature is an online signature used for filing. This step can be skipped, if director already owns DPIN and a Digital signature.

Step: 2 Name Approval

Secondly, you need to suggest three different names to the ministry of corporate affairs for Nidhi Company. Out of three names, only one will be selected by MCA. The suggested names must be unique and should not match names of any other registered businesses.

Step: 3 Submission of Memorandum of Association and Articles of Association

After the name approval, you need to prepare Memorandum of association (MOA) and the Articles of association (AOA). The main aim of incorporating a Nidhi company must be charity. The memorandum of association (MOA) and the articles of association (AOA) are filed to the MCA including the subscription statement.

Step: 4 Receive the incorporation certificate

It usually takes a time period of 15-25 days to form a Nidhi company and to get the incorporation certificate. The certificate of incorporation certifies that the company has been created and it includes your company identification number (CIN) too.

Step: 5 Apply for PAN, TAN and Bank Account

The next step is to apply for PAN and TAN. You will receive PAN and TAN within 7 working days. After that, you have to submit the certificate of incorporation, memorandum of association, articles of association and PAN in the bank to open your bank account.

How A.K. & Associats help in Nidhi Company Registration in India?

A.K. & Associats is a leading Indian portal providing accounting, finance & taxation services to small businesses. We are having more than 10 years of experience in helping individuals in Nidhi Company Registration at a least possible price. We will guide you through the entire process of Nidhi Company Registration. To avail the best deals on Nidhi Company Registration, kindly call us at 9958321816 or you can also e-mail us at

Nidhi Company Registration FAQ's

Requirements for registration of Nidhi Company are as follows –

  • The company should have an aim of borrowing and lending money to its members only.
  • The company formed should have a main objective of doing charity
  • The company should have minimum 3 directors
  • The company should have minimum 7 members
  • Director identification number (DIN) of all directors
  • Minimum paid up share capital of Rs.5 lakhs

Yes, your deposits are safe and secured with Nidhi Company. Now, the reserve bank of India/ministry of corporate affairs/government of India has made certain rules and regulations to ensure the safety and security of the deposits in the Nidhi Company. The Nidhi Company needs to follow the rules and regulations created by the Central Government.
As per company rules, Nidhi Company uses the funds to lend money to its shareholders/members. Nidhi Company lends the money in the form of small loans for business and microfinance.
Only shareholders/members of the Nidhi Company with membership ID can invest in this company. To be a member, you must have 18 years of age and must be a citizen of India.
Nidhi Company can open only 3 branches in its district if it is earning consistent profit after tax in the last 3 years. For any additional branch, you have to take the approval of the regional director.

General Restrictions

  • Nidhi company can not issue any securities, debentures or shares in any form or by any name.
  • The members of a Nidhi company cannot open the current account but the members can open the savings account.
  • For soliciting the deposits, Nidhi Company has not been authorized to issue any advertisement.
  • For deployment of funds or granting loans or for mobilizing deposits from members, Nidhi Company cannot pay any brokerage or incentive.

Business Restrictions

  • Apart from lending & borrowing to/from its members, Nidhi company cannot do any other type of business.
  • The Nidhi Company cannot do the businesses of acquisition of securities issued by the corporate body, insurance, leasing finance, hire purchase finance and chit funds. All these businesses are strictly prohibited for Nidhi company.