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Nidhi Company Registration

Rs. 13,999/- only

Register Company anywhere in India

What is Nidhi Company or Nidhi Bank?

A Nidhi company is a type of company in the Indian non-banking financial sector recognized under Section 406 of the Companies Act, 2013, whose core business is borrowing and lending between its members and also known as a Permanent Fund, Benefit Fund, Quasi-Bank, Mutual Benefit Funds, and Mutual Benefit Company. They are a type of non-banking financial company (NBFC) in India. The main purpose of its incorporation is to encourage savings among its members and establish reserve funds. The company receives deposits from its members and lends money only to its members to benefit each other.

Who governs Nidhi Company?

Nidhi companies come under Nidhi Rules,2014. The Ministry of Corporate Affairs regulates the Nidhi company, which also has the power to issue instructions to them about accepting deposits.

Every Nidhi company has to ensure that it has at least 200 members within one year of its incorporation. Its basic concept is the “Principle of Mutuality”. It is more prevalent in South India, and 80% of Nidhi companies are in Tamil Nadu.

nidhi company registration

Nidhi company registration

The Nidhi company registration requires only a minimum paid-up capital of Rs. 10 lacs. It is the simplest and most economical way to launch a loan business in India. It simply requires seven persons and simple paperwork.

It can conduct business only by accepting deposits and lending money to its members. It can only operate with its members and not engage directly with the public. However, joining the Nidhi Company is simple and requires little paperwork. The only type of company available to launch a loan company in India without RBI approval is the Nidhi Company.

How does Nidhi Company work?

It can open three branches after working in the district for three years. Also, to open any branch outside the district, the company will have to take the approval of the RBI. So, if you want to expand your business to another state, you must register for another Nidhi company.

Fincosolutions is a leading Nidhi Company registration and management firm in India. We have been providing our services for over 10 years, managing hundreds of companies nationwide. Our services include Nidhi Company registration, regulatory compliance management, accounting & bookkeeping, and corporate secretarial services. We also offer advisory and consultancy services to help our clients make the most of their companies. We are a top consulting company for starting and managing Nidhi company in India.

nidhi company registration


Our business is dedicated to giving consumers high-caliber service. We have been providing Nidhi Company Registration services for a long time. We have grown into a fantastic group of specialists and professionals. Our consulting team is here to assist you at any time. Here are some specifics about our services:-


4,999 In just 15 days
  • Nidhi Registration
  • Nidhi Consultancy


  • Nidhi Registration
  • Nidhi Consultancy
  • Basic Software
  • Nidhi Compliances


39,999 In just 15 days
  • Nidhi Registration
  • Nidhi Consultancy
  • Basic Software

Benefits of Nidhi Company Registration/Membership

Nidhi’s main objective is to motivate members to save money so they can occasionally meet their needs in terms of money. They develop critical thinking skills and become independent, able to cover any future expenses. The advantages of setting up a Nidhi company don’t stop there, either.

There are several benefits of registering a Nidhi company.

Some of the key benefits include:


Eligibility Criteria for Nidhi Company Registration

Given below are the essential conditions that must be met with for registering or operating a Nidhi Company.

Requirement before Registration

Requirement after Registration

Documents Required for Nidhi Company Registration

Process follow to register Nidhi Company

A professional’s help is required for Nidhi company registration. Moreover, the procedure has been completely changed by the government to make it easier to do business. But instead, the government is making the process a little complicated. However, Finco solution specializes in Nidhi company registration and has an experience with more than 200 Nidhi company registrations and managing hundreds of Nidhi companies across India. Learn all the 6 steps of Nidhi Company Registration.

Obtain DSC and DIN

First and foremost, the applicant must apply for a digital signature certificate (DSC). Through the DSC, signatures can be provided in digital format. After securing the DSC, the applicant has to apply for the Director Identification Number.

Drafting of MOA and AOA

After the above step, the applicant has to file the prescribed documents with the Registrar of Companies . Form INC-32 is use to submit these documents with the MOA and AOA. . When submitting documents, the applicant has to intimate the main objects of forming this entity.

Applying for PAN and TAN

At the end securing the certificate of incorporation, the Nidhi Company should apply for PAN and TAN. The Income Tax Department will secure the TAN.

Apply for a Name Approval

In the next step, the applicant has to make an application for name approval to the MCA. During this process, the applicant has to provide three unique names for the Nidhi entity. The names provided must be unique and should not be in conflict with any provision relating to intellectual property rights in India.

Incorporation Certificate

After reviewing the above documents, the company will secure the certificate of incorporation. This certificate of incorporation is a testament to the company’s incorporation process. The registrar will issue it within 16 to 20 business days.

Opening Bank Account

This is the final step in incorporating the business. It is crucial to open a bank account on behalf of the business for any transactions

Post Incorporation Compliances of Nidhi Company

The required compliances for the Nidhi Company are as follows:


A Nidhi Company is a Company which carries on the business of accepting deposits and lending the same on demand. It is similar to NBFC but the only basic difference between the two is that Nidhi Companies accept deposits only from its members. The main aim of these companies is to work for the mutual benefit of its members. These companies are not entitled to carry on the business of Hire Purchase Financing, Insurance, Chit Funds and Acquisition of securities or Issue of any Debt Instruments.


Nidhi Companies must have at least three directors and seven shareholders in order to incorporate.


No, a minor is not allowed to become director of a Nidhi Company. Only a person who is a minimum of 18 years old can become the Director of a Nidhi Company.


No, there is no upper limit prescribed for the maximum number of members. However, it is mandatory for a Nidhi Company must have a minimum of two hundred members by the end of the 1st financial year.


No, Only shareholders can participate in financial transactions.


No, Nidhi Company is not allowed to do microfinance business in India. These are because micro finance is a completely different set of business for an NBFC and require more capital to do the same. Hence, It cannot engage itself into micro finance business. Furthermore, because Nidhi Corporation obtains cash from deposits, there is a high probability that consumer defaults will happen. The organization can go out of business in the event of a distribution of funds without any form of security.


A Nidhi Company can open up to 3 branches after three years of continuous profit running of the business. Further, these three branches can be opened within the district only. Further, to open any branch outside the district, you will require the Regional Director (RD) permission. Also, a Nidhi Company cannot open a branch outside the state.


Yes, the Deposits with such companies are safe and secure because the Ministry of Corporate Affairs and Reserve Bank of India has framed rules and regulations to ensure the safety and security of Deposits. And the Nidhi Company compulsorily abide by the rules of Central Government.


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.


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


Yes, it is necessary to use the word “Nidhi Limited” in the name of the company. However, we can also use mutual benefit term.


The regulations passed by the Ministry of Corporate Affairs and the provision of Nidhi Rules, 2014 act as the regulating authority for Nidhi Company.


A Certificate of Incorporation has lifetime validity, or till the time the company’s name is not struck off by the ROC (Registrar of Companies).


No, Nidhi Company is not qualified to issue unsecured loans. However, it can issue Secured Loans to its shareholders or members.


No, a person cannot borrow again from the Nidhi Company if he has earlier defaulted in a loan.


No, a Nidhi Company is not allowed to operate outside the state in which it is registered.


No, the profits earned from a Nidhi Company cannot be invested in any other business.


Nidhi can deal only in secured loans. Thus it can give loans against the securities mentioned in the law.


A minimum of 6 months and a maximum of 60 months period is prescribed for fixed deposits in a Nidhi Company.


A Nidhi Company can accept deposits only from its Registered Members.


A minimum of 12 months and a maximum of 60 months period is prescribed for recurring deposits in a Nidhi Company.


No, Nidhi Companies are exempted from the core NBFC provisions of the Reserve Bank of India.


A Nidhi Company is not regulated and governed by the provisions of RBI. Moreover, It’s Registration requires a much smaller amount of capital than Rs 2 Crore paid-up capital requirement for NBFCs.


No, a Nidhi Company cannot purchase securities and shares from any other organization.


A director of Nidhi Company can hold their office for 10 consecutive years. However, he is eligible for re-appointment only after the expiry of 2 years, starting from the cessation of his term.


Nidhi Company cannot accept deposits exceeding the limit of twenty times its NOF (Net Owned Funds).


A Nidhi Company is allowed to open only three branches within a district. However, to open more than three branches, the said Company is must seek prior approval of the RD (Regional Director) for every additional branch


A Director is firstly required to be a member of the said Company, and then, he must comply with the requirements prescribed under Section 152(4) of the Companies Act, 2013.


No, a Body Corporate is not allowed to be admitted as a member or shareholder of a Nidhi Company.


A Nidhi company must be incorporated under the provisions of the Companies Act, 2013, and shall acquire the status of a Public Limited Company.


No, such rules have been prescribed banning a salaried person from becoming a director of a Nidhi Company. However, the employment agreement of the said person may place some restrictions on him or herein doing so.


A Nidhi company cannot be converted into NBFC.


No, Nidhi Company cannot give a vehicle loan


A Nidhi Company is a company that carries on the business of accepting deposits and lending the same on demand. It is similar to NBFC, but the only basic difference is that Nidhi Companies accept deposits only from its members.


The term NOF is the acronym form for the Net Owned Funds. Further, NOF or the Net Owned Fund = Aggregate Paid up share capital + Free Reserves – Accumulated losses (Deferred Revenue Expenditure), and Other Intangible Assets appearing in the Last Audited Balance Sheet.