What is Nidhi Company?

A Nidhi company, is one that belongs to the non-banking Indian finance sector and is recognized under section 406 of the Companies Act, 2013. Their core business is borrowing and lending money between their members. They are also known as Permanent Fund, Benefit Funds, Mutual Benefit Funds and Mutual Benefit Company. They are regulated by Ministry of Corporate Affairs. Reserve Bank of India is empowered to issue directions to them in matters relating to their deposit acceptance activities. However, in recognition of the fact that these companies deal with their shareholder-members only.

“Nidhi” means a company which has been incorporated as a Nidhi  with 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, and Which complies with rules of Chapter XXVI of Companies Rules, 2014.

Nidhi Company registration is simple and less complexed as compared to other types of finance companies like NBFC which require RBI license to start. A Nidhi Company can be started with a initial capital of Rs.5 lakh and require atleast seven people to start with. Nidhi Company registration also require three directors initially. Every promoter or director shall need a copy of PAN card, ID proof and address proof to apply for Nidhi Company in India. It takes around 15 to 20 days to get Nidhi Company registered in India.

Requirement after Incorporation:

Every Nidhi shall, within a period of one year from the commencement of these rules, ensure that it has—

  • Minimum number of members should be 200;
  • Net owned funds shall be Rs.10,00,000/- or more (‘Net owned funds’ means the aggregate of paid up equity share capital and free reserved as reduced by the accumulated and intangible assets appearing in the last audited balance sheet);
  • Ratio of net owned funds to deposit shall be not more than 1:20;
  • Unencumbered term deposits of not less than 10% of the outstanding deposits  as specified in Rule 14;

Documents required for Nidhi Company

  • Documents Required for GST Registration

    Documents Required

    • ID Proof (PAN Card)
    • Address Proof 1(Voter ID/Passport/Driving License)
    • Address Proof 2(Electricity Bill/Telephone Bill/Bank Statement)
    • Aadhaar Card
    • Photograph
    • Electricity Bill and Rent Agreement of premises
    • Client Questionnaire

Process for Registration of Nidhi Company

  • Step 1

    Prefill and submit requisition form

  • Step 2

    Search company name availability

  • Step 3

    Provide us with all the scanned copy of all the requisite Documents online by mail

  • Step 4

    Filling of application with MCA

  • Step 5

    Grant Certificate of incorporation with in 10 days

Our Prices

Nidhi Company Incorporation


Company Incorporation

26999 .00

Inclusive of all taxes


Company Incorporation + GST Registration

28999 .00

Inclusive of all taxes


Company Incorporation + GST Registration + Trademark

35999 .00

Inclusive of all taxes

Frequently Asked Questions

The Nidhi Company uses the funds in lending to shareholders as per Nidhi Rules. It lends such money in the form of small loan for business and finance.

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 jewellery or any type of financial securities against the loan.

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.

A Nidhi Company can open 3 branches in its district only if it has earned profits after tax consistently during the preceding three financial years. For any additional branch, Nidhi will be first apply for approval from the Regional Director.

The exclusive advantage which is offered by Nidhi Companies are:

1. It is a single office institution governed exclusively by its members with no involvement of the third party.
2. Provide loans at minimal interest rates and minimum documentation.
3. Secured investments are guaranteed by such companies

Only shareholders/Members of the Nidhi Company who has a membership ID, can invest in the scheme. For membership, must be 18-years and above as per submission of standard age proof and must be a citizen of India.