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Nidhi Company Registration

Nidhi Company Registration

A Nidhi Company is a company that closely resembles NBFC as it is one of the easiest and most affordable ways to start a loan business in India. It only requires 7 persons to Form Nidhi Company. The minimum capital requirement for Nidhi Company registration is Rs.5 lakh.

A Nidhi Company is registered to borrow and lend to its members to promote the habit of saving money among its members and works on the principle of mutual help. Unlike an NBFC a Nidhi Company is not required to obtain a license from RBI; hence it is easy to incorporate.

Nidhi Company can open three branches after three years of working within the district. Further, to open any branch outside the district, the company shall require RD approval. Furthermore, the Nidhi Company cannot work outside the state.

Company Details
Act Companies Act, 2013
Registration Requirement Mandatory
Number of members Unlimited
Separate Legal Entity Yes
Liability Protection Limited
Statutory Audit Mandatory
Ownership Transferability Unrestricted
Uninterrupted Existence Yes
Foreign Participation Allowed
Tax Rates Moderate
Statutory Compliances High

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What is Nidhi Company and how it works?

Nidhi Companies belong to the Non-banking financial companies structure. Registering a Nidhi Company allows a Nidhi to borrow from its members and lend to the members.  Nidhi Companies registered in India are created to cultivate the habit of thrift and savings among its members. The funds that are contributed to a Nidhi Company are only from its members. For Incorporating a Nidhi Company, no license is required from the Reserve Bank of India. Hence, the formation of the Nidhi Company is easy. Nidhi Companies are registered as Public Companies and should have Nidhi Limited at the last of the name.

It should also be noted that the Nidhi Companies fall under the purview of the Reserve Bank of India as the functioning of Nidhi Companies is similar to NBFCs.

Minimum Requirement to Start a Nidhi Company

Prohibited Activities

Activities like Chit Fund, Hire-Purchase Finance, Leasing Finance, Insurance or Securities Business are strictly prohibited in Nidhi Company

Minimum Capital Requirement

The minimum capital requirement for Nidhi Company registration is Rs.5 lakh

Minimum Members

It starts with 7 members as a public limited company, however, to obtain a Nidhi Company Status it needs at least 200 members in a year.

Services Covered

Digital Signatures

Digital Signatures of 7 Subscribers


DIN of Directors


PF ESI Registration

GST Registration

MSME Registration

Certificate of Incorporation


Advantages of Nidhi Company

Limited Liability

Less Regulations

Better Credibility

Ease of Fund

Micro Banking

Better Options for Savings

Documents Required for Nidhi Company Incorporation

Pan Card

Pan Card of all Directors and Subscribers

Aadhar Card

Aadhar Card of all Directors and Subscribers

Driving License/Passport/Voter Card

Driving License/Passport/Voter Card of all Directors and Subscribers

Utility Bill as proof of address

Utility bill of all Directors and Subscribers

Passport Size Photo

Passport Size Photographs of all Directors and Subscribers

Registered office address Proof

  • Rent Agreement if Property is rented.
  • Current Electricity Bill/ Utility Bill as Registered Office Proof

Loans & Deposits Under Nidhi Company


  • Nidhi Company can accept three types of deposits; Fixed deposit (FD), recurring deposit (RD) & Savings.
  • Nidhi Company can pay interest up to 12.5% on FD & RD and 6% on savings accounts.
  • Nidhi Company can take deposits up to 20 times the funds invested. Invest 5 lakh and accept 1 Cr


Nidhi Company is becoming so much popular among the businessman who wants to start the finance or loan business. The main reason behind this fact is the advantage of Nidhi Company to accept deposit from public and to lend money to public (members) without any RBI approval. The Below Mentioned are the Provisions of Loans Under Nidhi Company:

  • Nidhi Company can lend three types of loans; gold loan property loan, others (LIC, FD etc.).
  • Nidhi Company cannot engage micro finance business but can lend a secured loan with @20% interest.
  • Nidhi Company can take legal action if any member failed to repay any sum of money.

Process Flow

Register a Company in 3 Easy Steps

1. Fill the Questionnaire

  • Make a package that best fits your requirements
  • Make payment through secured payment gateways
  • Fill in our questionnaire that takes less than 10 minutes
  • Provide basic details & documents required for registration

2. Expert Advice and Help

  • Assigned Relationship Manager
  • Procurement of Digital Signatures (DSC)
  • Application for Company Name Registration
  • Documents drafting including MOA and AOA
  • Certificate of Incorporation
  • Application for PAN and TAN

3. Your Company is Registered

  • All it takes is 7 – 10 working days

Process to Register a Company in India

Day 1

  • Review of documents and information provided
  • Application for Digital Signature Certificate
  • Checking Name availability

Day 2-3

  • Name reservation application under SPICe+
  • Drafting of MoA, AoA & other required documents

Day 4 - 5

  • Filing company registration application
  • Application for ESIC and EPF of company
  • Application for PAN and TAN of company

Day 6 - 10

  • Government Processing Time


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