Nidhi Company Registration

Nidhi Company Registration only at ₹ 25,000/- (Inclusive of all fees)

Ideal for deposits and loans

For dealing in finance

Simple & Secure Online Process

Dedicated Professional

Get Registration in 10-12 Days

Get Post Incorporation Assistance

Introduction of Nidhi Company

Nidhi Company means a Company engaged in receiving deposits and lending loans to its Members only for their mutual benefits. It is incorporated as a Public Limited Company and is different from National Banking Finance Company governed by the RBI Act and other Companies incorporated under Companies Act, 2013. The purpose behind incorporating a Nidhi Company is to develop a habit of saving and thrift among its Members.

It is not directly regulated by the RBI but is required to follow some of the directives that are issued by the RBI from time to time for acceptance of deposit. It is an ideal type of entity for a specific group of people intended to deposit or lend money.

Legal Window has team of experts providing you the best assistance, timely delivery and guaranteeing the highest customer satisfaction with respect to Company formation process. You may get in touch with our team on 072407-51000 or email for Nidhi company registration and Compliance services.

Advantages of Nidhi Company

Micro Finance

Nidhi Company lends money in the remote as well as rural areas of the country and which are on the off site locations.

Limited Liability 

The liability of the Members is limited to the extent of Capital invested by them in the Company and therefore, they cannot be held personally liable for it also it is a legal entity which means it is different from its Members and Directors.

Less Complexity

Nidhi Company involves fewer complexions and can be incorporated with an amount of Rupees 10 Lakhs which is to be raised to 20 Lakhs within 120 days of incorporation and the loans from the Nidhi Company can be availed at cheaper rates than NBFC\'s.

Good option for savings

As the main objective of establishing Nidhi Company is to develop a habit of savings among the people for their mutual benefit as they can only lend and borrow money from their members only.

Better Credit Co-operative society

Nidhi Company has some similarities to the co -operative society and is suitable for the small financers. Once it gets registered it can avail the benefits of credit co-operative society.

Easy Access to Public Funds 

Nidhi Company can take deposits from its members through various accounts like Saving Account, FD A/c, Rd A/c which is less complex than taking finance from banks and other Financial Institutions.

Minimum Requirements for Nidhi Company Registration

Minimum seven persons as Members

Minimum three persons as Director and maximum fifteen

Minimum Capital requirement of Rs.10 Lakhs

Nidhi Company cannot issue Preference shares

Digital Signatures of Subscriber and Directors

Minimum one Director shall be Indian resident

Documents Required for Nidhi Company Registration

PAN Card of the Member and Directors of the proposed Company
Passport in case of Foreign Nationals

Identity Proof of the Member and Directors of the proposed Company;
(Aadhar /Voter ID/Driving License/Passport)

Address Proof of the Members and Directors (Utility Bill/Telephone Bill/Mobile Bill/Bank Statement not older than two months)

Latest passport size photograph of Member and Directors

Business Address Proof
Owned Property : (Copy of Registry and Latest Govt. Electricity Bill or Water Bill)

Business Address Proof
Rented/leased: (Rent Agreement, NOC from the Owner, Latest Govt. Electricity Bill or Water Bill)

Process of Nidhi Company Registration

1. Complete the Application Form
You are requested to first fill the simple questionnaire provided by our expert team.

2.Document Processing
At the second step we will be requiring the documents in accordance with the questionnaire filled by you so that we can arrange them as per the requirement and for processing.

3. Application for DSC
First of all DSC (Digital Signature Certificate consisting of the E-signatures) is required to be prepared. This step can be ignored if prepared already. It will approximately take 1-2 days.

 4. Name Availability
The next step is to check the name availability. The name should be unique in nature and should not be similar to name of any other entity registered. It may take at least 1-2 days.

5. E-filing for incorporation of a Company
Once the name is approved, an online application is required to be filed through SPICE+ along with the requisite documents as obtained from the client with ROC. The MOA as well as AOA shall be filed online. This process again takes approximately 2-3 days.

6. Get Certificate of Incorporation
Once the Company gets incorporated we will share all the docs like Incorporation Certificate, MOA, AOA and Digital Signatures.

Post Registration Requirements

Minimum 200 Members should be there within 120 days of incorporation 

Net Owned Funds should be 20 Lakh Rupees or more within 120 days of incorporation for New Companies and for existing Nidhi Companies, there is relaxation of 18 Months from the commencement of New Amendments Rule to maintain this limit.

Unencumbered deposits should be more than 10% of outstanding deposits

The ratio for Net Owned Funds to Deposit should not be more than 1:20

Loans & Deposits

Nidhi companies have an advantage over other type of finance vehicles that they can lend loans and accept deposits from general public (members) without the approval of RBI. It is important to know the basics before doing the same


  • Can provide loan only to its members
  • Certain Monetary Limits have been defined for giving loans
  • Can only give secured loans against gold, silver, immovable property, FDs, NSC, other Govt Securities and Insurance Policies
  • It can charge interest rate 7.5% above the rate of interest offered on deposits on reducing balance method


  • Can accept 20 times deposit of the Net Owned Funds (Example : If NOF is Rs. 10 lakhs, it can accept deposits amounting to Rs. 2 crores
  • Deposits can be accepted in the form of FD A/c, RD A/c, Savings A/c
  • Can pay interest on FD and RD up to 12.5% and 6% on Savings A/c.
  • Fixed Deposits Tenure : 6 months - 60 months
    Recurring Deposits Tenure : 12 months - 60 months

Compliances of Nidhi Company of Post Incorporation


NDH-1: NDH-1 is a one-time form to be filed by Nidhi Company incorporated before 19th April 2024, within 90 days of the closure of the first financial year or second where applicable.


NDH- 3 form is filed within 30 days on half yearly basis and details of the members, deposits, loans are reported to department.


NDH-4 form has to be filed within 120 days from the date of incorporation for declaration of the status as Nidhi Company.

Other Forms

Nidhi has to file other forms like AOC-4, MGT-7, MGT-14 and other event based forms as per the applicability.

Comparison Between Nidhi Company and NBFC

S. No.BasisNBFCNidhi Company
1.ActGoverned by Indian Banking Regulation Act, 1934Governed by Companies Act, 2013
2.Capital requiredMore Capital is requiredLess Capital required then NBFC
3.CompliancesStrict Norms and RegulationsLess Strict Norms and Regulations
4.RestrictionsThere are no such restrictions applicable on NBFC like Nidhi CompanyNidhi Company cannot do business of chit funds, hire purchase finance, lease finance, insurance or acquisition of securities issued by the Body Corporate.
5.Opening of BranchCan open branch at any timeIt has to continuously earn profit for a period three years for opening a branch.
6.DealingCan deal with general publicCan only deal with its Members
  Know MoreGet Started

Get your Nidhi company registered at just 25,000/- only (Inclusive of all fees)

7 Digital Signature Certificates

3 Director Identification Numbers

Stamp duty on INR 10 Lakh Authorized Capital (Rajasthan)

INC 20A Commencement of Business Certificate 

1 Name Approval Application 

Company Incorporation using SPICe+



GST Registration

ESI and PF Registration

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FAQs on Nidhi Company

What is deposit limit in a Nidhi Company?

A Nidhi Company cannot accept deposit exceeding 20 time of its Net Owned Funds as per the last audited Balance Sheet.

What is the maximized saving limits?

One Member of Nidhi Company shall not have a maximum balance of more than Rs. 1 lakh in a savings account and the maximum rate of interest to be paid on any deposits shall not be more than 2% above the rate of interest payable by nationalized banks, on such deposits.

Can a Nidhi Company carry on the business as a microfinance company?

No, a Nidhi Company cannot carry on the business as a microfinance company as the guidelines for both the entities are totally different.

Can a Nidhi Company open Branches ?

Yes a Nidhi Company can open three branches in the State in which it has registered office after earning profits for continuously three years. The branch can be opened outside the state after taking approval from Regional Director.

Can a Nidhi Company declare dividends?

Yes a Nidhi Company can declare dividends not exceeding 25% or higher as may be approved by RD subject to fulfilment of conditions.

What are Net Owned Funds?

Net Owned Fund = Paid up share capital + Free Reserves – Accumulated losses, deferred revenue expenditure, and other intangible assets

What are the restrictions applicable on Nidhi Company?
  • Nidhi Company is prohibited to engage in chit funds, insurance, leasing finance or acquisition of securities issued by any Body Corporate.
  • Nidhi Company can't issue preference shares, debentures or any other such instrument.
  • It can only accept deposits and lend money to its members.
  • These type of entities cannot pay any incentive for mobilizing funds accepted as deposits.
Is there any requirement to take the approval of RBI for running Nidhi Company?

No, there is no requirement to take the licence or permission from RBI as RBI has exempted Nidhi Companies from its core provisions

Can we close the Branches of Nidhi Company?

Yes you can close the branches by giving an intimation to Registrar and by publishing advertisement in newspaper.

Do a Nidhi Company need to invest in unencumbered deposits?

 Yes, Every Nidhi company having deposits outstanding at the close of last working day of the second proceeding month shall invest 10% of the amount in unencumbered deposits with a scheduled commercial bank or post office in its own name.