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Home / Registrations / Nidhi Company Registration

Easy Online Nidhi Company Registration with Finaccle.

  •  Get Nidhi Company registration within no time
  •  Enjoy hassle free Nidhi Company registration processing with Finaccle
  •  Finaccle lays a groundwork for your business.


1. Collect the documents relevant for registration

2. We shall apply for registration on your behalf.

3. You can get registration in no time.

Introduction / overview

It is an NBFC (non-banking finance company) that is registered under Section 406 of the Companies Act of 2013. The main business of such a corporation is to facilitate money lending Trade, among the company's core members.

This encourages members (or owners) to save money and invest it in the company. These funds are then utilised by the company to give loans and advances to its members (or shareholders), as well as to purchase government-issued stocks, bonds, debentures, and securities.


The Ministry of Corporate Affairs regulates it, while the Reserve Bank of India oversees all its financial transactions.

The Reserve Bank of India does not require a licence to incorporate a Nidhi Company. As a result, forming the Nidhi Company is simple. “Nidhi Limited” should there be at the end of the name because Nidhi Companies are registered as Public Companies.



Easy loan processing & sanction - Because the Nidhi Company exclusively lends to members, the entire loan approval procedure is simplified when compared to banks and NBFCs.

Members of Nidhi Company can borrow money from the company at lower interest rates than NBFCs

Lesser Regulations - The Nidhi Rules, 2014 govern Nidhi Companies. Although the activities of Nidhi Companies are supervised by the Central Government, they are subject to less regulations than NBFCs.

Low Capital Required - A Nidhi Company can be started with a capital of Rs. 5,00,000. The capital must be increased to Rs. 10, 00,000 or more within a year after incorporation.

Limited Liability - Directors and members' liability is restricted to the amount of capital they have invested. As a result, in the event of a loss, the directors and members cannot be forced to pay the company's liabilities out of their personal assets.

Easy mechanism for accepting deposits - When inviting public deposits, public firms must adhere to a number of regulations. However, Nidhi Company is exempt from these regulations. It may readily obtain deposits from the general public by simply enrolling them as members.

Good option to motivate savings - The Nidhi Company accepts deposits from its members at competitive interest rates, encouraging them to save.

Simplified Registration Process - Unlike NBFCs, Nidhi Company is not obliged to seek a licence from the RBI. Nidhi corporations must register with the MCA as a public corporation. The cost of incorporation is relatively also low.


Eligibility criteria

  •  Minimum 3 Directors
  •  Minimum 7 Shareholders
  •  Director and Shareholders may or may not be same person
  •  Minimum Capital Requirement is Rs. 5,00,000
  •  DIN of the directors
  •  Digital Signature of shareholder and directors

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Micro level banking - Nidhi Companies play a vital role in meeting the financial demands of middle and low-income populations by providing them with little paperwork. These, in particular, aid in the provision of banking services in rural and distant locations.

Low Capital - A Nidhi Company can be started with a capital of Rs. 5,00,000. The capital must be increased to Rs. 10, 00,000 or more within a year after incorporation.

Limited Liability - Directors and members' liability is restricted to the amount of capital they have invested. As a result, in the event of a loss, the directors and members cannot be forced to pay the company's liabilities out of their personal assets.

Documents required for registration

  • Passport sized photographs
  • E-Mail ID
  • Contact Number
  • Identity Documents of all the Directors:
  • Aadhar Card
  • Pan Card
  • Passport (In case of foreigner)
  • DIN (Director Identification Number)
  • DSC (Digital Signature Certificate)

  • Address proof of the premises:
    • If Rented: The Rent Agreement or Consent letter/No Objection Certificate
    • If Owned: SMC Vera bill/Light bill (Not older than two months)
  • MOA (Memorandum of Association)
  • AOA (Articles of Association).



The first stage is for the applicant to secure a Digital Signature Certificate; once the DSC has been received, the applicant should apply for a Director Identification Number.


The applicant must then submit an application for name approval to the MCA. Once the application is submitted, the applicant must provide prescribed documentation with the ROC. The names provided should be distinctive and should not violate any intellectual property rights laws.


INC form 32 must be used to file the documents, which must be accompanied by MOA and AOA. While submitting the documentation, the applicant must state the main purp


ose for forming the entity.


An incorporation certificate will be provided after reviewing the Incorporation Certificate. This certificate is issued by the registrar within 15 Days.


The next step is when the Nidhi Company is required to apply for PAN and TAN.


This is the final step while incorporating a Nidhi Company. At this stage, it is necessary to open a Bank account on behalf of the business for any transaction.


Conditions to be fulfilled

Conditions to be fulfilled for getting "Nidhi" status Within one year of its registration

  • Nidhi Company should have minimum 200 members within one year from commencement
  • Also, the net owned funds should be 10 lakh rupees or more. (Net owned funds = Equity share capital + free reserves (-) accumulated losses (-) intangible assets)
  • Unencumbered term deposits must be 10% or higher of the outstanding deposits
  • The ratio of net owned funds to deposits shouldn?t be more than 1:20

If Nidhi Company meets all the aforementioned requirements, it must file NDH-1 together with the required costs within 90 days of its incorporation. A practising CA/ CS/ CWA must certify the form.

Extension of another financial year can be availed upon submission of NDH-2 to the Regional Director within 30 days from the end of the first financial year.

If it still doesn't meet the requirements after the second fiscal year, it won't be able to receive deposits until it does, and a penalty will be applied.

Restrictions / prohibition

  •  Cannot carry on the business of chit fund or leasing finance or hire purchase finance or insurance or acquisition of securities issued by body corporates.
  •  Cannot issue preference shares / debentures / any other debt instruments.
  •  Cannot open any current account with its members.
  •  Cannot accept deposits or lend to any person other than members.
  •  Cannot advertise for itself asking for a deposit.

Why finaccle

Finaccle is a world class packaging team, built for you. Quality is what we pursue. Let’s nail your next project. We are always Accessible, Approachable and Accountable.

The only thing that you need to do is to take a smart decision today that have a lasting value tomorrow. We will be providing you the results that will move you.

By handling all the paperwork, we ensure a seamless interactive process with the government. We provide clarity on the incorporation process to set realistic expectations.



The parts of NIDHI COMPANY must be opened when it has earned a net profit after tax ceaselessly during three preceding years. After the time of three years is elapsed the Nidhi company can open up to 3 branches in the local area. It can possibly open its branches only when it has presented a budget summary with the registrar.

Nidhi can provide loans to its members only after the members have given/ provided some securities like gold, silver jewellery or any type of financial securities against the loan.

When a company gets incorporated, it is active and in-presence for whatever length of time that the yearly compliances are met with normally.

Any person who is above 18 years of age as per the standard age proof can become a member of the Nidhi Companies. The person desirous of becoming a member should have valid ID Proof and Address Proof.


What they say about us

Abhishek Taliya

Quick response to any query. Excellent services and Extremely polite and professional staff.
Abhishek Taliya, 3Tee Elastic Private Limited

Shreyansh Kothari

Best in business in their respective fields
Shreyansh Kothari, K Lal

Abhishek Gotawala

Great service by Team of Finaccle. Their execution method is amazing. Would love to continue with them in future!
Abhishek Gotawala, Harikanta Overseas Private limited

Mr. Sharma

It's good to work with Finaccle's Advisors. Perfect and Reliable.
Mr. Sharma, Ganesh Weaving

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