Nidhi Company Registration

Get your Nidhi company registered with us in 10 working days.*

1 DSC and 3 DINs included. Company name registration

What is Nidhi Company Registration?

Nidhi Company, a non-banking finance sector company, regulated under Section 406 of the Indian Companies Act, 2013, accepts deposits from and lends to its members only, for their mutual benefit.

A Nidhi Company is a non-banking financial company (NBFC) operating in India, governed by the Nidhi Rules, 2014, and recognised under Section 406 of the Companies Act, 2013. Functioning as a public limited company, its core objective revolves around promoting thrift and savings among its members while providing financial assistance to them through lending.

Documents Required Nidhi Company Registration + 2 DSC (Gov Fees Extra)

The following documents has to be submitted from all the directors

  • Passport Size Photograph of all Directors
  • Address proof of the all Directors. (Bank statement/Electricity bill/) (not more than 2 months)
  • PAN card and Aadhar card of all Directors.
  • Identity proof of the all Directors.(Driving license/ Voter ID card/passport)
  • Email id and mobile number of all Directors.
  • Registered office address proof.(Electricity bill/ Telephone bill/Gas Bill) (not more than 2 months)
  • Rent Agreement (Company name should be mentioned with complete address) (on Rs. 100 stamp paper with Notary)
  • Board resolution authorising Director for GST in the company
  • Digital signature certificate of All Directors.
  • DIR-2 of all Directors.
  • NOC (Company name should be mentioned) (on Rs. 100 stamp paper)
  • Provisions of Rule 4,5,6,10 of Nidhi Company Declaration

Checklist for a Nidhi Company Registration in India?

  • In India, a minimum of seven members are needed for registration of Nidhi.
  • It needs 3 directors
  • It can have upto 200 members
  • A minimum equity share capital of ₹5 lakhs must be paid up in full
  • Within a year of Nidhi registration, Net Owned Funds (NOF) must increase to ₹10 lakhs

Nidhi Company Rules? and Important Facts

By 2023, Nidhi firms having a share capital of ₹10 lakh or more were required to obtain a self-declaration from the central government before beginning operations. By establishing e-Nidhi Rules, Nidhi firms will be governed in a transparent, accountable, and democratic manner. Companies that match the criteria must file an application in Form NDH-4, including having a minimum of 200 members, a net owned fund of at least ₹20 lakh, and being considered as a fit and proper person. The application is judged successful after 45 days have elapsed without a response from the government. Existing Nidhi enterprises have 18 months to comply with these rules before new businesses are required to do so.

  • Nidhi firms can be established without the RBI's consent
  • They are established as public corporations
  • The term 'Nidhi Limited' must be added to their name
  • Nidhi companies are regulated by the RBI, similar to NBFCs
  • Their primary focus is on internal loan and borrowing activities, without involve external parties
  • The Nidhi Rules of 2014 permit Nidhi firms to rent out locker facilities to their members
  • The rental income from lockers should not exceed 20% of the total revenue during the fiscal year.

Nidhi Company Frequently Asked Questions

A Nidhi Company is a type of non-banking financial company (NBFC) in India, primarily formed to cultivate the habit of thrift and savings among its members.

Any Indian citizen above the age of 18 can register a Nidhi Company. However, certain criteria and regulations need to be met as per the Companies Act, 2013.

The minimum requirements include:

Minimum of 7 shareholders

Minimum of 3 directors

Minimum capital requirement of Rs. 5 lakhs

The company should have "Nidhi Limited" as part of its name

It should have at least 200 members within one year of incorporation

Obtaining Digital Signature Certificate (DSC) for directors

Obtaining Director Identification Number (DIN) for directors

Reservation of the company name

Drafting of Memorandum of Association (MOA) and Articles of Association (AOA)

Filing of incorporation documents with the Registrar of Companies (RoC)

Payment of registration fees

Obtaining the Certificate of Incorporation.

No, you don't need to be present in-person to start a Nidhi Company. The whole process can often be done online. You need to fill in the right forms and provide the necessary documents.