Nidhi Company Registration

Want To Register Nidhi Company? Register Now At Rs.2499/ + Govt Fees


Nidhi Company governed in India by Companies Act 2013, and define under section 403, and is belongs to the non banking Indian finance sector. Nidhi Companies are regulated by Ministry Of Corporate Affairs (MCA).

Nidhi Companies are incorporated with the object of developing the habit of thrift and reserve funds amongst its members and also receiving deposits and lending to its members only for their mutual benefits.

Nidhi Company must have minimum 3 directors. All the Nidhi Company shall have the last word as a Nidhi Limited as a part of its name. Nidhi Company is easy and economic to register.



The Ministry of Corporate Affairs has done away with the minimum capital requirement of INR 5 Lakhs for Nidhi’s. It is only after Nidhi Rules, 2014, that mandated the infusion of INR 10 lakhs for such companies.


The main aim of such companies is to promote the habit of saving and thrifts among lower and middle section of the society. These small sections of the population contribute to the funds of and avail credit from Nidhi companies


A Nidhi company enjoys better credibility when compared to Mutual Benefit Organizations. Nidhi companies are registered and monitored by the Central Government. Mutual Benefits Organization are on the other hand governed and monitored by State Governments.


A Nidhi company being a juristic person, can acquire, own, enjoy and alienate property in its own name. No member can make any claim upon the property of the Nidhi Company as long as it is a going concern.


The Nidhi companies are formed by, managed by, and provide benefits to their members only. The outsider is not allowed to intervene in the working of the Nidhi, neither allowed to deposit money or avail credit from these companies.


The Board of Management of a Nidhi company can be easily changed by filing simple forms with the Registrar of Companies. The Board of Management of a Nidhi company controls the activities of the Nidhi Company.


  • Register office of all companies must be in India .If it is a Rented Property, Rent agreement and NOC from a landlord. If it is a Self-owned Property, Electricity bill or any other address proof.
  • Documents submitted must be valid and not more than 2 month old.



 Aadhar Card, Aadhar number is now a necessity for applying for any registration in India.

 Income tax return can only be filed if the person has linked his PAN card with Aadhar number.

 Address proof will be required for all directors and shareholders of the company to be incorporated.

 For Indian nationals, PAN is mandatory. For foreign nationals, apostilled or notarised copy of passport must be mandatorily submitted.

 Residence proof documents like bank statement or electricity bill should not be more than 2 months old.

 All documents submitted must be valid


  • Register office of all companies must be in India .If it is a Rented Property, Rent agreement and NOC from a landlord. If it is a Self-owned Property, Electricity bill or any other address proof.
  • Documents submitted must be valid and not more than 2 month old.


Following provisions are applicable to Nidhi Companies.

  • As they are incorporated into the nature of Public Company so rules and regulations of Companies Act, 2013 are applicable.
  • RBI provisions related to Interest rate payable on deposit are applicable to Nidhi Companies. But the core provisions of RBI are not applicable to Nidhi Companies as RBI has exempted the Nidhi Companies from the same.
  • Nidhi Rules, 2014.

As to incorporate a Nidhi Company it is to be registered as a Public Limited Company. So, to incorporate a Nidhi Company it is necessary to fulfill following criteria:

  • It should have at least 3 Directors.
  • It should have at least 7 Members.
  • The main objective to be written in the MOA should be to cultivate the habit of thrift and savings among its members. And it can accept deposits and lend money only to its members and shall work for the mutual benefit of its members.

Once the Nidhi Company is incorporated it must fulfill the following requirements:

  • It must have at least 200 members/shareholders.
  • Minimum Net Owned Fund should be Rs. 10 Lakhs.
  • Unencumbered term deposit must be at least 10% of the term deposit.
  • The ratio of Net Owned Fund to term deposit should not be less than 1:20.

Yes, the Deposits with such companies are safe and secure because the Ministry of Corporate Affairs and Reserve Bank of India has framed rules and regulations to ensure the safety and security of Deposits. And the Nidhi Company compulsorily abide by the rules of Central Government.

The Nidhi Company uses the funds in lending to shareholders as per Nidhi Rules. It lends such money in the form of small loan for business and finance.

Any person who is above 18 years of age as per the standard age proof can become a member of the Nidhi Companies. The person desirous of becoming a member should have valid ID Proof and Address Proof.

Nidhi can provide loans to its members only after the members have given/ provided some securities like gold, silver jewelry or any type of financial securities against the loan.

Yes, another can be a shareholder in a Nidhi company.

Yes, a salaried person can become a director in a Nidhi company. There are no legal hassles in this but one may have to go through their employment agreement if it contains any restrictions.

Once a company gets incorporated, it is active and in-existence for as long as the annual compliances are met with regularly. In a scenario where the annual compliances are not complied with, the company becomes a dormant company and then it may be struck off from the registrar after a period of time. A struck-off company can be revived for a period of up to 20 years.

No, one can open a company even at their residential address. There is no legal requirement to have a commercial place to open up a company.

No, as per the constraints mentioned in the Nidhi rules and regulations, no Nidhi company can do the business of asset.