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Nidhi Company
Registration

Register a Nidhi Company to encourage savings and provide credit facilities to members. A mutual benefit finance company operating within its member group.

100% Online Process
20–30 Working Days
Mutual Benefit Structure
Overview

What is a Nidhi Company?

A Nidhi Company is a type of Non-Banking Financial Company (NBFC) that cultivates the habit of saving and thrift among its members. It works on the principle of mutual benefit - accepting deposits from and lending only to its own members.

Nidhi Companies are governed by the Companies Act, 2013 and the Nidhi Rules, 2014. Unlike other NBFCs, Nidhi Companies do not require RBI approval or registration, making them easier to operate. They must use "Nidhi Limited" as a suffix in their name.

A Nidhi Company must have at least 7 members at incorporation and must grow to 200 members within the first year of operations. The net owned funds must be ₹10 lakh, and unencumbered deposits must be at least 10% of outstanding deposits at all times.

Promotes Savings

Encourages savings culture among members of the community

Easy Loans

Members can access credit at lower interest rates than banks

Low RBI Compliance

No RBI registration needed - only Nidhi Rules 2014 apply

Build Community Fund

Builds a common pool for the benefit of all members

Why Choose

Benefits of Nidhi Company Registration

Promotes Savings Culture

Nidhi Companies instill financial discipline and savings habits in their member community through regular deposits and thrift schemes.

Easy Loans for Members

Members can avail loans at lower interest rates compared to banks, with simpler documentation and faster processing.

Low RBI Compliance

Unlike other NBFCs, Nidhi Companies are exempt from RBI registration. They are regulated only under the Nidhi Rules, 2014 - much simpler.

Simple Management

Member-driven management ensures transparency and democratic control over the company's operations and policies.

Tax Benefits

Nidhi Companies enjoy certain tax exemptions on income generated from their mutual benefit operations for member welfare activities.

Build Community Fund

Creates a collective pool of resources that strengthens the financial position of the entire member community over time.

Requirements

Documents Required

For All Directors & Shareholders

  • PAN Card of all 7+ promoters
  • Aadhaar Card / Passport / Voter ID
  • Passport-size photograph
  • Bank statement / Utility bill (address proof)
  • Digital Signature Certificate (DSC)
  • Director Identification Number (DIN)

For Registered Office & Incorporation

  • Latest electricity bill of registered office
  • NOC from property owner (if rented)
  • Rent agreement (if rented)
  • MOA & AOA with "Nidhi Limited" as name suffix
  • Declaration of compliance with Nidhi Rules
How It Works

Registration Process

1

Name Approval

Reserve name with "Nidhi Limited" suffix on MCA portal

2

DSC & DIN

Obtain Digital Signature and Director Identification Numbers

3

MOA/AOA Drafting

Draft Memorandum and Articles per Nidhi Rules 2014

4

SPICe+ Filing

Submit incorporation form with all documents on MCA portal

5

COI + PAN/TAN

Certificate of Incorporation issued with PAN and TAN

6

Nidhi Compliance

File NDH-4 form and achieve 200-member requirement

FAQ

Frequently Asked Questions

A Nidhi Company must have at least 7 members at the time of incorporation. Within the first year of incorporation, the total membership must grow to a minimum of 200 members. Failure to achieve this may lead to cancellation of Nidhi status.
No. A Nidhi Company can only accept deposits from and lend money to its own members. It cannot solicit deposits from the general public. This is the fundamental principle of mutual benefit that distinguishes it from other financial institutions.
No. Nidhi Companies are specifically exempted from RBI registration and licensing requirements. They are regulated under the Nidhi Rules, 2014 framed under the Companies Act, 2013. The Ministry of Corporate Affairs (MCA) oversees their compliance.
A Nidhi Company must maintain minimum net owned funds of ₹10 lakh. Unencumbered term deposits must not be less than 10% of the outstanding deposits. The ratio of net owned funds to deposits must not exceed 1:20.

Register Your Nidhi Company Today

Get complete Nidhi Company registration support from our expert CA team - name approval, MOA/AOA drafting, MCA filing, and Nidhi Rules compliance.