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What is Nidhi Company ?

Nidhi Company Registration – Nidhi means “Treasure”. A Nidhi Company is a company that is formed for Deposit and Lending activities within the members (members only).Nidhi Companies are categorized as a class of NBFCs and governed by section 406 of Companies Act 2013 read with Nidhi Rules 2014. Although Nidhi Companies are classified as NBFCs, RBI approval is not necessary to register the company. Due to their dealing with funds of members only (no public funds involved),RBI has exempted Nidhi Companies from core provisions of RBI Act and other directions applicable to NBFCs.

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. 

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. 

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. 

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. 

Requirement For Nidhi Company Registration



Total 7 Members needed for the Nidhi Company Formation in which 3 can be directors and 4 can be a members of the Nidhi company



Aadhar Card Copy
Pan Card Copy
1 photograph
Bank Statement


Registered Address

Electricity bill
Gas Receipt
Rent Agreement(if rented)
Consent letter(if rented)


Capital needed

Incorporate a  Company with minimum paid up equity share capital of Rs. 5,00,000 with the sole object of lending and borrowing within the members.

Steps Involved In Nidhi Company Registration

Application of DSC & DIN

All the partners have to apply for DPIN and digital signature for Nidhi Company. DPIN or Director’s PIN Number is issued by MCA. If all the directors already have their DPIN and DSC, they can skip this step.

Name Approval

You have to submit 2 option for the name of your Nidhi Company to the MCA out of which one will be selected. Names provided should be completely unique.

MOA and AOA Submission

After the name approval, one needs to submit the MOA and AOA. Both MOA and AOA are filed with the MCA with the subscription statement.

Incorporation Certificate

Once your application is filed you will receive an ARN number. The Incorporation certificate is received within 10-12 days .It is a proof that company has been creation also includes your CIN (Company Identification number).


No Hidden Charges , All Fees Included with the Legal Documents like FD, RD ,Membership Form, Samples are also provided

Exclusive Offer

₹ 31999/-


Frequently Asked Questions

What is Nidhi Company?

A Nidhi Company is a part of a Non-Banking Financial Company (NBFC), incorporated with the sole objective of accepting deposits and giving loans to its members.

‘Nidhi’ or ‘Limited’

It is not required to end the name of the Nidhi Company with suffix ‘Nidhi’ or ‘Limited’. 

How does a Nidhi Company function?

A Nidhi Company accepts deposits from its members and uses these deposits to lend money to its other members. The basic idea is to save the members from the exploitation of the money lenders who charge unreasonably high rates of interest.

What is the difference between Nidhi Company and NBFC?

The differences:
A Nidhi company is a company incorporated for the mutual benefit of the members. However, an NBFC is a financial institution that operates similar to a bank, but without a banking license.
 A Nidhi company does not engage in the business of chit fund, hire purchase finance, leasing, insurance or acquisition of securities. On the other hand, an NBFC can engage in all banking businesses like loans and advances, acquisition of shares, leasing, hire purchase, chit fund business, and insurance businesses.

What are the conditions to be followed by a Nidhi Company for giving loans to its members?

Maximum loan to a member cannot exceed 1% of the total deposits of the company
Unsecured loans and microfinance loans cannot be given
Gold loan can be given for a maximum of 1 year
 Loan repayment schedule cannot exceed 7 years
Gold loan cannot exceed 80% of the value of the asset.
Loan against property cannot exceed 50% of the property value

Are there any legal restrictions for a Nidhi Company in India?

A Nidhi Company is prohibited from carrying businesses involving chit fund, leasing finance, insurance or acquisition of securities issued by any corporate body.
 Restricted from the issue preference shares, debentures or any other financial/debt instruments.
 Cannot accept deposits or lend money to non-members.
 Cannot pay any incentive or brokerage for mobilizing deposits.