Nidhi Company Registration


All Inclusive Fees

(EMI: Rs.3370.45 for 12 months)*





Nidhi Company is one of the categories of Non-Banking Financial Company (NBFC) that does not require any Reserve Bank of India (RBI) license. Nidhi Companies are limited companies formed for cultivating the habit of thrift and savings amongst its members. It borrows from members and lends to members only. The main reason as to why the Nidhi Company is so famous between the business communities is the Nidhi Company is very easy and inexpensive to register.

Nidhi Companies mostly operate in the southern part of India. Moreover, it should have “Nidhi Limited” as the last words of its name.

You can Apply for Nidhi company registration online through Registration SEVA and can get Nidhi company license within 15-20 working days. Nidhi company is considered a good substitute for credit co-operative society and is more convenient to operate with fewer compliances.


Following are some of the advantages of forming a Nidhi Company in India:

  1. Limited Liability:

Liability of Directors and shareholders of the Nidhi Company are limited as per the Companies Act, 2013. In case the company grieves from any loss or faces financial distress in the course of its business activity, the personal assets of any of the Directors or members are not at risk of being held by banks, creditors, and government. The liability of the members is only for the unpaid amount on shares held by them and not more than that. Shareholders are not liable for the Company’s debts and liabilities.

  1. Separate Legal Entity

One of the best advantages of a Nidhi Company is that it is distinct from that of its members. A company is a separate entity having its own rights & Obligations.

  1. Simple Registration Process

Nidhi Company initially can be registered by at least seven persons, by complying with the prescribed limited formalities of the Companies Act, 2013 and Nidhi companies Rules, 2014.

  1. Cost-Efficient

Registering Nidhi Company is quite cost-efficient. The minimum capital requirement for registration of Nidhi Company is Rs 5,00, 000 lakh.

For registration of Nidhi Company, you can reach where you will find an economical price for Nidhi registration and get the registration of Nidhi company in minimum time.

  1. Limited Regulations

Nidhi companies follow the Nidhi Rules, 2014 issued by the Central Government in respect of its activities. Regulations imposed on Nidhi Company by Reserve Bank of India (RBI) is very limited.

  1. Lower rate of credit

The loans given to the members are at a much lower rate of interest than the market rate. This ultimately brings much more savings to the members.

  1. Helps in saving the funds

The goal of Nidhi companies is to promote the habit of savings and thrifts amongst the lower and the middle section of the society. These small sections of the population contribute to the funds and avail the credit from the Nidhi Companies as and when required.

  1. No Outside Involvement

The Nidhi Companies are formed, managed and provide benefits only to their members. The outsider will not be allowed to get involved in Nidhi company operations in anyways. Be it working off the Nidhi companies or depositing money with them or even avail credit from Nidhi. There would be no external intervention in the management as well.

  1. Cheaper to Borrow

As a member, one can borrow money at a minimum rate, relative to the rate at which banks lend money. This can be a major advantage in times of need, as different individuals in the mutual benefit society are likely to need funds at different points in time.

  1. Fewer Complications

Borrowing and lending to known persons, where the procedure is fixed, is much less complicated than dealing with banks or in an informal setting. A Nidhi Company enables its members to unlock the potential of their money and gain from lower interest rates when they require money themselves.

Prohibition of certain activities in a Nidhi Company:

The Nidhi Companies have to abide by certain prohibitions that are imposed on them in terms of their activities. Following are certain under which Nidhi Company cannot deal, accept deposits and lend funds:

  • Chit Funds
  • Hire-purchase finance
  • Leasing of finance
  • Insurance Business
  • Securities Business
  • Non-acceptance of deposits from any other person except members.
  • Cannot lend funds to any other person except members.


The following checklist must be taken care of before starting the procedure of Nidhi Company Registration:

  1. Number of shareholders or members

The minimum number of shareholders or members required to form a Nidhi Company must be at least 7. Directors can also own shares in a Nidhi Company

  1. Number of Directors

There must be at least 3 directors to form a Nidhi Company. The directors must be 18 years or above.

  1. Capital Requirement

The minimum capital requirement to start a Nidhi Company is Rs. 5 lakhs or more. Further, please note that Nidhi Companies cannot issue preference shares.

  1. DIN for Directors

DIN can be applied along with the company registration application form i.e. SPICE -32. However, maximum of 3 Directors can obtain DIN along with SPICE 32. In case a person is already DIN number, then he just needs to provide the said number.

  1. Registered Office

The registered office of a company does not have to be a commercial space. Even a rented home can be the registered office, so long as a NOC is obtained from the landlord.

  1. The object of the Nidhi Company

The main and only object for which a Nidhi Company must be formed should be “cultivating the habit of thrift and savings amongst its members, receiving deposits from, and lending to, its members only, for their mutual benefit.”

Documents Required

In India, Nidhi company registration is done with proper identity proof and address proof. Identity and address proof will be needed for all the directors and the shareholders of the company to be incorporated. Listed below are the documents that are accepted by MCA for the online Nidhi company registration process:

  1. Identity and Address Proof of Directors and Shareholders
  • Scanned copy of PAN Card (Passport in case of Foreign Nationals & NRIs)
  • Scanned copy of Voter’s ID/Passport/Driver’s License (Anyone)
  • Scanned copy of the latest bank statement/telephone or mobile bill/electricity or gas bill of the individual (Anyone, not older than two months)

Please note that for the foreign nationals, apostilled or notarized copy of the passport has to be submitted mandatorily. All documents submitted should be valid and genuine.

  1. Registered Office Proof

For online company registration in India, the company must have a registered office in India. Following documents needs to be mandatorily provided while giving Registered Office details:

  • Scanned copy of the latest bank statement/telephone or mobile bill/electricity or gas bill in case you own property
  • Scanned copy of Notarized rental agreement
  • Scanned copy of No-objection certificate from the property owner

Important to Note: Your registered office can be a commercial space or can be your residence too.

Registration Process

Though the process of registering a Nidhi Company is simple, but still assistance from a professional is advised to complete the various complex forms and filing them within time. Moreover, the government portals and language are a bit on the difficult side, too.

Registration SEVA is an expert in Nidhi Company Incorporations, with over 8 years of experience in the field and successfully registering more than 500 Nidhi Companies. Our operations are spread all over India.

Step 1: Apply for Digital Signature Certificate (DSC)

Since the process is completely online, hence all those authorized signatories/directors who needs to sign the online incorporation documents must apply for Digital Signature Certificate.

Step 2: Apply for Director Identification Number (DIN)

DIN can be applied along with the company registration application form i.e. SPICE -32. However, maximum 3 Directors can obtain DIN along with SPICE 32.

In case the subscriber is already holding a valid DIN, and the particular provided have been updated as on date of application and the declaration to this effect is given in the application, the proof of identity and residence need not be attached.

Step 3: Apply for Name Approval through RUN

For the name approval step, an application is filed in the prescribed Form RUN (Reserve Unique Name) with the Ministry of Corporate Affairs. Please note that a minimum of 2 names at the time of incorporation are proposed.

Also, a signed declaration by all the directors and shareholders must be attached during filing of RUN.

Step 4: Drafting and submitting final incorporation documents

After name approval, one needs KYC, and other prescribed documents of Directors & Shareholders. Also, various consent forms and online e-documents like SPICe form along with MOA, AOA and AGILE needs to be filed to Ministry of Corporate Affairs (MCA)

Step 5: Receiving Certificate of Incorporation and opening Bank Account

After approval of incorporation documents, you will receive your Certificate of Incorporation including your Company Identification Number (CIN) along with PAN and TAN of your company. Post this you can open a bank account on the name of your company and can launch your business.

How can we help in getting registration?

Our services include the following:

  • Assured Name approval from the Ministry of Corporate Affairs (MCA)
  • Trusted by more than 4,00,000 clients
  • DSC’s and DIN for subscribers and directors
  • Filling of company incorporation e-forms with the MCA
  • Drafting objective, Memorandum of Association (MOA) and Article of Association (AOA)
  • PAN and TAN
  • Business plan guidance
  • The legal agreement, corporate drafts set, letters on requirement basis.

Compliances After Nidhi Company Registration

Once you have successfully registered the Nidhi Company make sure that you comply with these requirements to avoid cancellation of your registration or penalties. Following table will help you to understand the post compliances relating to Nidhi Companies in a simple manner:

Form NDH-1 This form needs to be filed within 90 days from the closure of every financial year
Form NDH-2 This form is used to request MCA to allow extension of time in case a Nidhi Company is not able to add 200 members in its first financial year
Form NDH-3 This form is used to file half yearly returns
Form MGT-7 This form is used to file Annual Returns
Form AOC-4 To file financial statements and other related documents
Income Tax Return Needs to be filed by 30th September


01. What is Nidhi Company?

Nidhi Companies are limited companies formed for cultivating the habit of thrift and savings amongst its members, receiving deposits from, and lending to, its members only, for their mutual benefit.

Nidhi Companies are formed in nature of public limited company where minimum seven members, a minimum of three Directors are required for establishing a Limited Company. Minimum net owned funds of at-least INR 5 lakh as capital is required.

02.How many shareholders are required to register a Nidhi Company?

Minimum of seven shareholders required to register a Nidhi Limited Company and within one year of incorporation it shall be minimum two hundred.

03. How many directors are required in Nidhi Company?

Just like any other Public Company, Nidhi Company also requires minimum of 3 directors to register itself.

04. How much money do I need to start a Nidhi Company?

In case of Nidhi Company, minimum Rs. 5,00,000 (5 lakhs) of owned capital is required.

05. How much deposit does Nidhi Company can take from the members?

The quantum of deposits depends upon the net owned fund of the Nidhi Company. As per law, it has to maintain the ratio of 1:20. Which means if we have net owned fund (NOF) of Rs. 100/-, we can take deposit of Rs 2,000/-

06 Can a Nidhi Company open its branches?

A Nidhi Company is not allowed to open any branches before 3 years. Also, it can open its branches after 3 years on a condition that profit has been earned by the Nidhi Company in all the three years consecutively.

07. What is the core business of Nidhi Company?

Their core business is borrowing and lending money between their members.

08. What can be taken up as security by Nidhi company?

  • Gold, silver jewellery and immovable property can be taken, however, it shall be taken as security when the repayment time is less than one year.
  • Immovable Property an also be taken, however, the loan shall not exceed 50% of the value of the property offered as security and repayment time shall not exceed 7 years.
  • Fixed deposit receipts, National Savings Certificates and other Government securities and insurance policies.

09. What are Nidhi Rules?

Nidhi Companies are regulated by Nidhi Rules, 2014. These rules were introduced by the Central Government and contain the regulatory policies for Nidhi company operations.

10. Who can become a member of a Nidhi Company?

Any individual person who is above 18 years of age can become a member.

11. How long does it take for a company to get registered as a Nidhi Company?

The registration process of a Nidhi Company can take up to 15 days.

12. Is a body corporate allowed to be a member of a Nidhi Company?

No, a body corporate will not be admitted as the member of a Nidhi Company.

13. Can the director of a Nidhi Company be a salaried person?

Yes, the director of a Nidhi Company can be a salaried person.

14. What are all financial activities are prohibited for a Nidhi Company?

A Nidhi Company cannot deal in chit funds, hire-purchase funds, insurance business, leasing of finances, and securities business.