Nidhi Company Registration

The Nidhi Company is defined under Section 406 of Companies Act, 2013.

Nidhi Company Registration

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A Nidhi company registration belongs to the class of non-banking finance sector firms. The Nidhi Company registration empowers lending money and encouraging savings between the members of the company. Nidhi Company is defined under Section 406 of Companies Act, 2013 and Companies (Nidhi Companies) Rules, 2014. The Nidhi Companies is governed/ruled by the Central Government, Reserve Bank of India (RBI) is empowered to give directions regarding the matters related to the acceptance of deposits.

nidhi registration



Nurturing the habit of saving money.

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Lending money to and receiving deposits from its members only, for their common benefit.
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Nidhi is the safest and the cheapest way of raising funds from the General public (just by
registering them as members).
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Minimum requirements

Minimum paid up share capital required is ten lakh rupees.
Minimum seven members required to incorporate a Nidhi Company.
Every company should have ‘Nidhi Limited’ as parts of its name.
Minimum 3 directors required to register a company.
The main object of Nidhi company to as per Nidhi rules.



Suggestion for name availability for Nidhi
company registration

Filing of name application with ROC

Drafting of MOA and AOA as per Nidhi

Application for company incorporation
with ROC

Filing application for DIN and DSC of

Application for PAN and TAN of company

Business activity restricted in Nidhi Company

1. Carry on or take up a business-like chit fund, hire purchase finance, leasing finance, insurance or acquisition of securities by a body corporate.

2. Open any current account with its member.

3.  Accept deposits from or lend money to any person than its members.

4. Any assets in the form of security provided by its members should not be Pledged.

5. Accept deposits from or lend money to any kind of body corporate.

6. Enter into any kind of partnership arrangement in its borrowing or lending events.

7. Publish any kind of advertisement in any form of deposit etc.


Borrowing is Cheaper for these Companies
Encourages Savings
Fewer Complications In Processing
Limited RBI Regulations
Limited Capital Requirement
Easy Formation
Lower Rate of Credit
No Outsider Intervention
Easy availability of finance through this company
An easy source of finance from members


A minimum of seven persons are required to register a Nidhi company in India.
No, unlike other NBFCs, Nidhi Company Registration and regulation is exempted from core provisions of Reserve Bank of India.
A Nidhi company is registered as a Public Limited Company. Hence, the requirements for incorporation of a Nidhi company covered a minimum of three Directors and Seven Shareholders. However, the MOA of a Nidhi company must state that the primary objective of the proposed company is to nurture and promote a habit of thriftiness and savings among its members, and accept deposits from or lend loans only to its members, for the mutual benefits of them.
Nidhi Company Registration, as well as regulation, is done by the Ministry of Corporate Affairs. All the activities are done as per the provisions of Nidhi Rules, 2014.
To become a member of a Nidhi company, following requirements are to be met:1.Member must be an individual, no corporate body or trust can become a member2.The member must have attained the age of 18 years.
Once Nidhi Company registration process is completed, it is required to meet the following requirements within a year 1.Register at least 200 members 2.Maintain minimum net owned funds of Rs. 10 Lakh. 3.Maintain net owned funds to deposit ratio of 1:20 4.Out of all the outstanding deposits, 10% must be unencumbered term deposits.
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