Nidhi Company

Nidhi Company  is a company registered under companies act 2013, nidhi company  just like non banking finance company generally doing business of small finance for it’s members,mainlly  nidhi company works for  lending money and encouraging savings between the members of the company . main objective of nidhi is providing financial assistance to it’s members and saving the money of members.for registering the nidhi company thare is no need to get any approval from reserve bank or any other financial institution only registration certificate from ministry of corporate affires is enough.  Nidhi Company works through its members. It can accept deposits and lends loans to its members only.

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.

Main objectives of nidhi company

  • Increasing the heabits of savings
  • Lending the money for the benefits of it’s members
  • Receiving the deposits from it’s members
  • Raising fund from members general public after registering as member
  • Nidhi is also a mutual benefit company
  • Nidhi company promoting the heabits of savings
  • Anyone can register nidhi company there is no need to check the backgroud of promoter for registering the nidhi company
  • Easy source of loan to members against collateral
  • Secured means of investment due to rigid membership structure

Advantage & Features of Nidhi company registration

  • Minimum 7 members required for the registration of registration of nidhi company
  • Minimum 3 Directors needed for registering the nidhi company
  • Minimum paid up capital should be 500000 for registering the nidhi company
  • No preference shares can be issued
  • Nidhi company can not involve in to the auto loan segment
  • Nidhi company can not grant\ provide the unsecured loan
  • Nidhi company must increase no. of members at least 200
  • Nidhi company must have net owned funds of 10,00,000.00 or more
  • Net owned fund ratio should be 1:20
  • Nidhi company shall issue the the equity share of minimum value  of rupees 10
  • No Nidhi shall have any object in its Memorandum of Association other than the object of cultivating the habit of thrift and savings amongst its members, receiving deposits from, and lending to, its members only, for their mutual benefit.
  • Every Company incorporated as a “Nidhi” shall have the last words ‘Nidhi Limited’ as part of its name.

Legal compliances  for  Nidhi Company

  • Half yearly return in NDH-3 Form with in 30 days of close of every half year. i.e. 30th April for the half year endig on 31st March and 30th Oct for the half year ending on 30th Sept.
  • NDH-1 with in 90 days of close of financial year.

Documents Required for the registration of  Nidhi  company

  • Pan card of all the directors & shareholders ( Minimum 3 Directors & 7 Subscribers)
  • Adhar card /Voter ID card/ Driving license/ Passport ( all Directors & subscribers)
  • Latest bank statement/ copy of passbook /latest utility bill for every director & shareholders
  • Latest utility bill & rent Agreement of premises to be used as registered office of company
  • Occupation , email id , Phone no. of directors as well as shareholders


  • Filling Application for Reservation of name
  • Apply for digital signature for all the subscribers and directors
  • Preparation and signing of incorporation documents
  • Filling the incorporation form ( spice(32) MOA ,AOA)
  • Wait for approval from MCA
  • Generation of incorporation certificate

Time limit for registering a Nidhi company

It may take 10-15 days for registering a private limited company . This
time line further subject to the government processing and approval time