What is Nidhi Company Registration?

Starting a Nidhi company is a quite simple process and It doesn't require RBI Approval. Its main objective is to encourage its members to save money and give loans with interest to its members when they require.

Nidhi Company is registered as a mutual benefit- NBFCs in India under Companies Act 2013 and is one of the kinds of Non-Banking Financial Company that operates with no RBI License or its interference. Nidhi Company Registration is done either as a Public Limited or Private Limited with “Nidhi Limited” as the last word on its name. 

Nidhi companies are engaged in activities of collecting funds from its members and return them with interest at fixed time duration. These companies are very beneficial for those who are willing to incubate into saving habits with a great scope of monetary growth. If you are willing to start a Nidhi company then Swarit Advisors will help you to provide Online Nidhi company Registration Services at your ease.

Features of Nidhi Company :

Following characteristics of Nidhi Company makes it the favorable structure of the company:

  • Helps in promoting the habit of savings amongst the middle and lower-income group
  • Nidhi company accepts term deposits.
  • Money invested in these companies remains secured.
  • Nidhi company provides loans and credit with minimum documentation and formalities
  • Nidhi company accepts funds from its members as an investment and further grants loans to its members only thus external involvement is nullified in these companies.
  • Directors and members of Nidhi company enjoy the clause of limited liability, and hence their assets are protected in case the company goes bankrupt.
  • Nidhi company has separate legal existence and it can sue and can be sued by the third party.

Prohibition on Nidhi Company :

Nidhi is restricted from carrying the following activities:

  • They are prohibited to advertise their company for deposits
  • They cannot carry the activities of chit fund and lotteries
  • They are restricted to indulge in the insurance business
  • Nidhi company are restricted to lease finance or hire-purchase financing
  • Nidhi is restricted from accepting deposit or granting a loan to any third person other than its members
  • Entering into a partnership for carrying lending or borrowing activities

Key-Requirement for Nidhi Registration :

Few requirements one must fulfill before incorporating Nidhi company:

  • Minimum subscribers shall be 7
  • Minimum directors shall be 3
  • Nidhi company shall increase its shareholders to 200 after 1 year of its incorporation
  • It shall maintain a minimum net owned fund of INR 10 Lakhs
  • It shall maintain the ratio of minimum net owned fund to deposits of 1:2 throughout

Steps to register Nidhi Company:

Registering Nidhi company is very easy. One can register Nidhi company following these simplified steps:

  • Obtain DSC of all the directors and subscribers before applying for company incorporation
  • Apply for name reservation through RUN available on MCA. Nidhi company shall use the words “Nidhi Limited” at the end
  • Apply for Nidhi incorporation through SPICe forms after the receipt of the name approval letter
  • Download the SPICe form from MCA and fill all the necessary details along with attaching supporting documents
  • Upon the verification of documents and application, ROC shall issue Certificate of Incorporation with details such as CIN, Date of Incorporation, Name, and Registered Address


Nidhi Company Registration has gained wide popularity for past years. NBFC has been a savior for middle and low-income families since they can't rely on any investment companies as they cater a large amount of money and on the other hand, regular banks provide little scope for savings. Thus Nidhi Companies play an extremely useful role in such helpless conditions. Get your Nidhi Registration now by reaching out to our experts.   If you want to know more about Nidhi company and it's procedure then you can read our related blog which will clear your dought:   Procedure for Nidhi Company Registration


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