Nidhi Company Registration in India

A Nidhi Company is a type of Non-Banking Financial Company (NBFC) recognized under Section 406 of the Companies Act, 2013, and governed by the Nidhi Rules, 2014. Its primary objective is to cultivate the habit of saving and thrift among its members. It accepts deposits from and lends funds only to its members for their mutual benefit.

Unlike banks, Nidhi Companies operate only for their members, offering loans at comparatively lower interest rates while promoting financial discipline. Only individuals can become members — corporate bodies and partnerships are not allowed.

If you want to establish a Nidhi Finance Company in India, our team ensures end-to-end assistance in the registration process, compliance, and ongoing management.

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Advantages of a Nidhi Company

• Easy Formation: Simple incorporation process under the Companies Act, 2013.
• Low Risk: Transactions are only among members, minimizing default risk.
• Encourages Savings: Designed to promote a culture of saving and financial prudence.
• Low Capital Requirement: Requires a paid-up equity share capital of ₹10 lakhs only.
• No External Interference: Independent functioning without the need to approach the Reserve Bank of India (RBI) for licensing.

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Minimum Requirements

Before starting a Nidhi Company, you must meet the following:

• Public Company Status: Must be incorporated as a Public Limited Company.
• Paid-Up Capital: Minimum ₹10 lakhs.
• Name: Must end with “Nidhi Limited”.
• Members: Minimum 7 members and 3 directors at the time of incorporation.

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Basic Conditions for Incorporation

• Must operate only as a Public Company.
• Cannot issue preference shares under any circumstances.
• MOA must restrict the company’s objects to receiving deposits and lending only to members.
• Company name must end with “Nidhi Limited”.

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Post-Incorporation Requirements (Within 1 Year)

• Minimum 200 members.
• Net Owned Funds of at least ₹20 lakhs.
• Unencumbered term deposits of not less than 10% of outstanding deposits.
• Net Owned Fund to Deposit ratio not exceeding 1:20.

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Documents Required

For All Members/Directors:

• Self-attested ID proof (Passport/Voter ID/Aadhaar/Driving License).
• Self-attested address proof (Bank statement/Electricity bill/Telephone bill — not older than 2 months).
• Self-attested PAN card.
• 2 passport-size photographs.

For Registered Office:

• Ownership Proof (Property papers) or Lease Agreement with NOC from landlord.
• Latest utility bill (Electricity/Telephone — not older than 2 months).

Additional Details:

• Authorized and paid-up share capital details.
• Residential address with duration of stay for all directors and members.
• Occupation, educational qualifications, email IDs, and contact numbers.

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Process of Registration

The Ministry of Corporate Affairs (MCA) has introduced SPICe+ for company incorporation.

Step 1: Name Reservation

• Apply via SPICe+ (Part A) at MCA Portal.
• Ensure no existing company or trademark matches your proposed name.

Step 2: Fill SPICe+ (Part B)

• Complete incorporation details.
• Draft and file e-MOA (INC-33) and e-AOA (INC-34).
• Fill AGILE-PRO for PAN, TAN, GST, ESIC, EPFO, and bank account opening.

Step 3: Convert to PDF & Affix DSC

• Attach the Digital Signature Certificates (DSC) of all directors.

Step 4: Upload to MCA

• Upload the forms on the MCA portal for approval.

Step 5: Certificate of Incorporation

• Once approved, MCA issues the Certificate of Incorporation with PAN and TAN.

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Recent Amendments

• Mandatory ESIC & EPFO registration for all companies incorporated after 23rd February 2020.
• Professional Tax registration for companies in Maharashtra.
• Bank account opening via AGILE-PRO is compulsory.
• e-MOA and e-AOA are mandatory if subscribers are up to 7 and meet eligibility criteria.

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Why Choose Us for Nidhi Company Registration?

• Expert Guidance: From name approval to final incorporation.
• Complete Compliance Support: Ensuring post-registration adherence to Nidhi Rules.
• Transparent Pricing: No hidden costs.
• Fast Turnaround: Smooth and quick process handling.

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