Nidhi Company Registration

In today's world, there are many talented and ambitious people with that want to start their very own businesses.

  • 3 DSC & up to 3 DINs
  • Nidhi Company Name Reservation
  • MoA & AoA
  • Nidhi company registration certificate
  • Nidhi Company PAN & TAN

Note – GST Extra, MCA fees inclusive based on NCT Delhi


  • -Easy Payment Options Available
  • -No Spam. No Sharing. 100% Confidentiality

What is Nidhi Company?


If you are planning to open a business of your own and you want to help people just like you, creating a Nidhi Company is the best option for you. Plus, it would make you feel good and the business would flourish as well because it would beneficial for your client as well as for you. Allow me to explain further.

As per central government, Nidhi Company is a non-banking finance company. It is recognized under section 406 of the Companies Act and governed under Nidhi Rules 2014.

The sole purpose of a Nidhi Company is to ensure smooth processes of money lending between business people, mainly the top core personnel. To get into more detail, a Nidhi company basically receives money from a party of members as deposits or it lends them the money they require for any justifiable cause. The next main thing to talk about would be what sort of contracts or funds can the company provide? Well, there are a bunch of them that a Nidhi Company can provide to its clients.

Nidhi Company Registration

As we discussed earlier, a Nidhi company is a type of Non-banking Financial Company. RBI approval is not required for Nidhi Company Registration in India. Nidhi company is registered as a Public Company Registration.

  • Apply for DSC and DIN
  • DSC stands for Digital Signature and DIN stands for Director Identification Number. The applicant needs to apply for DSC and DIN. DSC is an electronic signature required at the time of filing government forms online.

  • Application for name approval
  • You need to file the RUN form for the name approval on the MCA portal. The name should be unique and matches with the company’s activity.

  • MOA & AOA submission
  • Memorandum of Association i.e. INC-9 & Article and Association are filed at MCA Portal with INC- 32 and the subscription statement.

  • Application for PAN, TAN & Bank Account
  • You also need to apply for Permanent Account Number, Tax Deduction, and Collection Account Number. PAN& TAN will be issued in 7 working days. After which you can submit the incorporation certificate.

  • Incorporation Certificate
  • The Nidhi Company takes around 15-25 days to get incorporated. Once MCA is satisfied with all your submitted forms and documents it will issue incorporation of the certificate as a proof that the company has been created and also includes CIN number.

Documents Required for Nidhi Company Registration

For Nidhi Company Registration following list of documents is required by all the members or directors -

  • A copy of PAN card, it should be self-attested so you do not worry about it being misused.
  • A copy of your Voter’s card or Driver’s License. If you do not have these two then you can submit a copy of your Passport or Aadhar Card. They should also be self-attested.
  • A copy of your Bank Statement. If for some reason you cannot provide that, you can provide a telephone, mobile or electricity bill. They also should be self-attested for safety protocols.
  • A passport-size photograph.

These are a bunch of easy things you need to provide for your Nidhi Company registration. Now, let’s discuss the basic structure of how registered Nidhi Company is supposed to work for it to maintain its position in the market.

How Does It Work Nidhi Company?


Nidhi Company is prohibited to deal in Chit funds, hire purchase finance, leasing finance, insurance, securities business. They are not allowed to accept deposits or lend funds to any person except members. Minimum 7 members are required for Nidhi Company registration out of which three members must be the directors of the company.

Minimum 5 lakhs is required as equity share capital to incorporate a company where they cannot issue preference shares.

Basic Features of Nidhi Company Registration

  • Nidhi company registration is recognized under section 406 of the Companies Act,2013 and governed by Nidhi Rules, 2014
  • It is mainly Regulated by the Ministry of Corporate Affairs
  • The Reserve Bank of India has the power to issue a directive to Nidhi Company related to their deposit acceptance activities. However, to form the company there is no formal approval required from the RBI end.
  • The primary business of the company is to borrow and lend to its shareholders- members only.
  • Within one year of a Nidhi company, it is mandatory to have a minimum of 200 members on board.
  • It is stringent to add the word “Nidhi limited” to the end of the company’s name
  • 80% of Nidhi company in India is done in Tamil Nadu

What Funds Can A Nidhi Company Provide?


While being a non-banking finance company, Nidhi Company can lend money to their clients in the shape of different funds, as per the client’s requirement. Some of the examples are-

  • Permanent funds.
  • Mutual benefit funds.
  • Mutual benefit company funds.

All these funds are recognized by the government, which makes them true and legit. Apart from these 3 types of funds, a Nidhi Company can provide many types of funds. You can get the information for them after your company has been established.

The most important thing you need to know about any of the funds is that any type of borrowing or lending that would be done by your Nidhi Company; it should be according to the rules of Company Rules of 2014, especially Chapter XXIV.

Benefits of a Nidhi Company


A company like this has three major advantages for the company itself and for the members too.

  • Cheaper borrowing
  • If you compare the borrowing process of a Nidhi Company and a bank, you will realize that a Nidhi Company is a lot cheaper in that regard. For example, for the members, it is possible to borrow money at the most minimum rate. This could be a huge advantage for the members as at times, people need more than one loan consecutively. If the system of the company was like most banks, the members would get severely indebted. However, with Nidhi Company that is not the case. The members could choose the minimum rate and ease their already troubled times.

  • Appreciates savings
  • A Nidhi company promotes and encourages saving money for all its members. It also promotes the concept of spending money thoughtfully. As it works on mutual benefit, members can borrow from or lend money to each other, which again promotes savings.

  • No complications
  • As the people, you would be borrowing money from or the lending money to would be people you know and trust, so there would be no complications or doubts of messing up. Plus, the procedure of the financial process is also fixed so there would be no confusions there as well.

Compliances under Nidhi company Registration


The following are the compliances every Nidhi company has to comply with-

  • Within the period of 60days, the Nidhi company is required to file Form NDH-1
  • Along with the above form a half yearly return is to be filed in Form NDH-3
  • Certain requirements are required to be met like within one year of Nidhi company registration, the company should have around 200 members and Rs 10 lakh as the Net Owner Fund.
  • If Nidhi Company fails to meet any such requirement then the company will apply for extension in Form NDH-2
  • The Nidhi company is required to file annual return with MCA through Form MGT-7 and AOC-4
  • The ratio of net owned funds to deposit cannot be more than 1:20
  • Unencumbered term deposit of not less than 10% of the outstanding deposits as specified in Rule 14.

Choose us to Open Your Nidhi Company


There are many reasons you should pick these guys to help you out with your company opening.

  • You won’t have to go through much trouble. You will just have to give necessary information about your company and within 35 days, you will have your corporate certificate as go for the Nidhi Company registration
  • They have a satisfaction rate number 0f 9.1 as customer satisfaction. Your interaction with the government is made quite easier due to these workers as most of the paperwork is handled by them.
  • The help is only a phone call away. If you ever have any questions about the procedure or just need help with your Nidhi Company registration, you can just give a call to one of their executive team members and they will help you out. Although it won’t be needed as they will explain everything to you along the way and before too.

To avoid any further confusion about a Nidhi Company, here are a few frequently asked questions by people.

Frequently Asked Question on Nidhi Company Registration


A total of 10 individuals are needed to start a Nidhi Company. You need 3 directors and 7 stockholders. Your company would have to be registered as a limited company according to the Companies Act of 2013. It could take around a month or so to register the company.

Yes, you can open three branches in one district. If you wish to open branches of your Nidhi Company in other districts, you would have to file an application 30 days before you wish the branch to open. The application is to be sent to Registrar of Companies.

The conditions by the Act say that you need 200 members within a year. If for some reason you have failed to do so, you can write an application asking for an extension so you can fulfill the 200 number of members requirement.

No, to keep the system safe, only members can deposit, borrow or lend money.

Anyone can become a member of Nidhi Company as long as they are clear in the light of Companies Act of 2013. The only condition is that they should not be a company or a corporation but an individual.

The company can accept a deposit less than 20 times of its owned assets per according to the last audited statement.

Why Corp Biz


20 Working Days

Just tell us a little bit about your business and you'll have the incorporation certificate in 20 working days. It's that simple. In addition to yours, we'll be handling around 400 requests this month.

9.1 Customer Score

We make your interaction with government as smooth as is possible by doing all the paperwork for you. We will also give you absolute clarity on the process to set realistic expectations.

160 Strong Team

Our team of experienced business advisors are a phone call away, should you have any queries about the process. But we'll try to ensure that your doubts are cleared before they even arise.

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