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Nidhi Company Registration

“Nidhi” is a Hindi word, which means finance or fund. Nidhi means a company which has been incorporated with the object of developing the habit of thrift and reserve funds amongst its members and also receiving deposits and lending to its members only for their mutual benefit. Nidhi Company is a company registered under the Companies Act, 2013. Nidhi companies are allowed to take deposit from its members and lend to its members only. Therefore, the funds contributed for a Nidhi company are only from its members (shareholders) and used only by the shareholders of the Nidhi Company.

Nidhi Company is a Non-Banking Financial Company (NBFC) which does not require any license from the RBI. The Nidhi Company is very easy and cheap to form to register. Anybody can register a Nidhi Company; there is no background check, nor are there did any prescribed qualifications for its owners. Nidhi Companies cannot deal with anybody other than its members. Therefore, Nidhi Company is an ideal entity to take deposit from and lend to a specific group of people.

Nidhi Company is incorporated in the nature of Public Limited Company. Hence, all requirements for the Public limited company will be applicable. Minimum seven members and minimum three directors are required for incorporation of a Nidhi Company. There is also a myth in the industry that a Nidhi Limited Company is first incorporated as a Public Limited company, and then registration of Nidhi is initiated. Nidhi Company is registered from the beginning as a Nidhi limited. There is no separate approval process.

Our team of highly qualified professionals at can help you to establish a Nidhi Company to start your business as a corporate entity.

Process & Timeline

15-20 days

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As per specific nature of work

(GST, Government Fees and other Out of Pocket Expenses Extra)

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  • Separate Legal Entity: A Nidhi Company is a legal entity and a juristic person established under the Act. Therefore, a Nidhi Company has wide legal capacity and can own property and also incur debts. The members (Directors) of a Nidhi Company have no liability to the creditors of a Nidhi Company.
  • Easy Management: The Board of Management of a Nidhi Company can be easily changed by filing simple forms with the Registrar of Companies. The Board of Management of a Nidhi company controls the activities of the Nidhi Company.
  • Uninterrupted Existence: A Nidhi Company has ‘perpetual succession’, that is continued or uninterrupted existence until it is legally dissolved. A Nidhi Company, being a separate legal person, is unaffected by the death or other departure of any member but continues to be in existence irrespective of the changes in membership.
  • Going Concern: A Nidhi Company being a juristic person, can acquire, own, enjoy and alienate, property in its own name. No member can make any claim upon the property of the Nidhi Company as long as it is a going concern.
  • Better Credibility: A Nidhi Company enjoys better credibility when compared to Mutual Benefit Organizations. Nidhi Companies are registered and monitored by the Central Government. Mutual Benefits Organization are on the other hand governed and monitored by State Governments. Government of India/Ministry of Corporate Affairs/RBI has framed the laws/rules to ensure the security and safety of deposits and Nidhi companies must strictly abide by the rules and regulations framed by the Central Government.


  • For Members/Directors:
    • PAN Card
    • Identity Proof – (Voter ID, Passport, Aadhaar Card, DL – Anyone)
    • Address Proof – (Bank Statement/Passbook, Electricity Bill, Telephone Bill, Mobile Bill – Any One (Should not be older than two months)
    • Passport Size Photograph

    For Registered Office:

    • If premises are on rent: Rent Agreement + Utility bill + Signed NOC
    • If Premises are owned: Ownership Proof + Utility Bill + Signed NOC

    Requirements after Registration of Nidhi Company

    Now, we are into the section of requirements which are required to be complied within one year of Incorporation. These requirements are very much important. Otherwise, the company will be at default. The requirements are as follows:

    • Not Less than 200 Members: After incorporation, a Nidhi company must add at least 200 members to comply with this requirement of law. Further, it has to maintain this during the course of time. If the total members falls less than 200 at anytime thereafter, it will leave the company at default. However, are not able to reach the limit of 200 members, then you must apply for some more time within 30 days of closure of financial year in Form NDH-2 with Regional Director.
    • Net Owned Funds of 10 Lacs or more: In a layman language, Net owned funds means amount invested into the business. As already stated, this requirement can be fulfilled by registering the company at INR 10 Lacs capital.
    • Net owned funds to Deposits should be 1:20: This ratio is very easy to understand. Suppose, if you have net owned funds of Rs. 10 Lacs, then your total deposit limit would be INR 2 Crore. This ratio reflects the upper limit on total deposits.  

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