Nidhi Company Registration

How to do Nidhi Company Registration in India?

A Nidhi Company is a type of NBFC which operates to boost the habit of savings among its members. One does not require RBI approval for Nidhi Company Registration.To start a Nidhi Company in India the first step is to incorporate a limited company under the Companies Act 2013. Hence, a minimum of three Directors and seven shareholders will be required to start the Limited Company incorporation process.

Nidhi Company collects funds from its member via Recurring Deposit & Fixed Deposit and lends them the same against Shares, Gold, Properties and Bonds. Nidhi Company is registered under Section 406 of Companies Act, 2013 and Companies (Nidhi Companies) Rules, 2014 with MCA. This document will provide complete knowledge about the procedure, documents, benefits and other essential aspects of Nidhi Company Registration.

Prerequisites to register a Nidhi Company:

Here are the conditions to incorporate and register a Nidhi Company in India:

  • To start a Nidhi business, the Company needs to have at least 7 members and 3 amongst them should be designated as Directors.
  • The minimum Equity Share Capital of the Company applying for Nidhi Registration must be INR 5 lakh.
  • Nidhi Company undertakes the activities of issue of Preference Shares, Chit funds, Lease, hire or purchase etc.
  • The term ‘Nidhi Ltd.’ must be added in the suffix of the Company’s name.

Compliance for post-incorporation of a Nidhi Company

Once registered, the Nidhi Company has to fulfil the conditions mentioned below:

  • Within one year of Incorporation, a Nidhi Company shall need to have at least 200 members.
  • The Company must have the Net Owned Funds (NOF) of INR 10 lakhs or more.
  • Nidhi Company has to ensure that its Unencumbered Term Deposit which does not exceed 10% of its Outstanding Deposits.
  • Net Owned Fund to Deposits Ratio must be more than 2:1.


If case the Company fails to meet the requirements mentioned above within a year of its Incorporation, then it shall seek an extension of time from RD in Form NDH-2 within 30 days of closure of first financial year. 

Documents required for Nidhi Company Registration

  • PAN card & Aadhaar card copy
  • Passport-size photographs
  • Bank Statement of the last three years
  • A proof of the Company’s Registered Office
  • If the office is a rental property, then provide a copy of the Rent Agreement
  • Latest utility, water or gas bill of the Registered Office
  • NOC from the landlord of the premises

Procedure for registering a Nidhi Company

The process of Nidhi Company Registration is similar to Public Limited Company as per the provisions of Company Act, 2013. Follow the given steps to get a Nidhi Company Registered:

  • Acquire DSC and DIN- The first step is to obtain Digital Signature Certificates of the designated Directors from MCA which is used to sign the documents electronically. DIN (Director Identification Number) can be obtained directly by filing the Incorporation Form.
  • Fill RUN Form for name approval- Next step is to choose an appropriate name for your Nidhi Company and get an approval by filing RUN Form. The name must be unique and should not resemble any other existing/Registered Company. Also, the Company’s name should denote the objective, nature of the Company and ensure it is not offensive or illegal.

Note- An applicant Company can propose 3 names to MCA in preferential order. One can check the uniqueness of the name through the free search name facility available online at MCA portal.

  • Submission of Memorandum of Association and Article of Association- Once a Company’s name gets an approval; one has to submit MOA and AOA along with the Subscription Statement. All the objectives, roles & responsibility of the organization must be stated clearly in the statement.
  • Issuance of Certificate of Incorporation- Submit SPICe Form with the necessary documents to attain Incorporation Certificate. Therefore, the Regulatory Authority will verify the form and the documents. If it is feels satiated with the provided information, then CIN or Certificate of Incorporation shall be granted to your Company. The procedure of Nidhi Company Registration usually gets completed within 15-25 working days.


Nidhi Company Business Model is beneficial for those entrepreneurs who believe in the motto of “One for all and all for one.” It is due to this nature of Nidhi Company that it is also known with the names like Mutual Benefit Company, Benefit Funds, Mutual Benefit Funds and Permanent Fund.

Incorporation and Nidhi Company Registration process becomes much easy with professional assistance, so reach out to Swarit Advisors.

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