@ Rs 16999 All Inclusive No Hidden Charge

*Stamp Duty Extra For Madhya Pradesh, Punjab & Kerala​

Nidhi companies operate as a non-banking financial company for its members only.


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‘Nidhi’ means treasure or to finance or fund. The main objective of the company is to build the habit of saving among its members. It is just like a public limited company and needs a minimum of seven members and three directors to register it. It is also known as ‘Mutual benefit companies’ this terminology is mainly used in the banking sector. They borrow money from their members and pay interest on such borrowing and lend to its members on specified interest rates. It works like a community among a group of people, the company took money from one person and gave it to another member, and it circulates the money among the other members of the company. They are incorporated with an aim to build a money reserve, receive deposits and lend money to its members. This structure is different from the other business forms in the sense that any person who is a member of Nidhi company can make deposits or borrow loans whenever the need arises. Any person can become part of the company and take the benefit of its activity only by taking part in the shares of the company. Anyone can start this business for the mutual interests of the members of the company.

What Do You Get In Nidhi Company

  • 1 RUN Application Form
  • 3 Director Identification Number
  • 7 Digital Signature
  • Memorandum Of Association
  • Article of Association
  • PAN Card Of Company
  • TAN Number Of Company
  • Certificate Of Incorporation
  • Board Resolution To Open Bank Account
  • GST Registration
  • Share Certificate
  • Upto 5 Lakhs Authorized Capital

Documents Required For Nidhi Company Registration


Pan card is required for all the Directors and Shareholders of the company.


Driving License, Voter Id Card or Passport. Any one Id Proof is required  for all the Directors and Shareholders of the company.


Latest Bank Statement not older than 2 months is required for all the Directors and Shareholders of the company.


Passport size photograph is required for all the Directors and Shareholders of the company.


Latest Utility bill not older than 2 months, Rent agreement in case of rented property Registry Proof or House Tax Receipt in case of owned property and No Objection Certificate (NOC) from the owner

Process Of Nidhi Company Registration

  • Submit Documents
  • Name Approval
  • Digital Signature
  • Documents Preparation
  • Company Incorporation

You need to submit all the required documents.

We will verify all the documents and then apply for the name approval through the RUN application form. In one form we can apply for 4 names. Name of the company is subject to Government approval.

After the name approval of the company, we will apply for the Digital Signature. For Digital Signature Video Verification will be required.

After Name approval and Digital signature, we will draft Memorandum of Association, Article of Association and subscription statement of your company and will submit it to the Registrar of Companies with prescribed e-form Spice 32. We will apply for PAN and TAN application simultaneously.

Once all the documents submitted are duly verified by Registrar of Companies, the approval is given and the Certificate of Incorporation is sent to you on your email id.

More About Nidhi Limited Company

  • Eligibility for Nidhi Company
  • Advantages of Nidhi Company
  • Concerns Related to Nidhi Company

SHAREHOLDERS: Nidhi Company is like a public limited company, and it requires the same number of persons as required in the public limited company, i.e., minimum seven people required as shareholders of the company at the time of incorporation. There is no maximum limit for the shareholders in the company, but the company shall have a minimum of 200 shareholders within one year from the date incorporation.

DIRECTORS: Minimum three individual persons required as directors of the company at the time of registration. Maximum 15 directors can be appointed in the company with the approval of the shareholders of the company. All directors must have the digital signature for signing the form.

CAPITAL: The company must have at least Rs.5,00,000/- equity share capital as a paid-up capital at the time of its registration. However, after incorporation, the company must have Rs. 10,00,000/- as a net owned fund within one year of the record.

NAME: The name of the company shall contain the word “NIDHI LIMITED” at the end of the name of the company. For example “ABC Nidhi Limited” here the “ABC” is the name of the company and “Nidhi” denotes the business activity that company is operating Nidhi business, i.e., NBFC activity only for the members of the company and "Limited" means that the company is a public limited company.

OBJECTIVE: The company carries the Non-Banking Financial Activity for its member only. The company borrows and lend money to its member at a specified interest rate. The company can accept the deposits from its members, but it shall not carry any business like;

  • Chit fund
  • Hire purchase finance
  • Lease finance
  • Insurance business

REGISTERED OFFICE: The Nidhi company must have a registered office during the life of the company even though if the company is operating its activity through the internet. The company can shift its registered office from one place to another. This address shall be mention in every documents and letterhead of the company. This address will also be mentioned in the certificate of incorporation of the company.

  • The Nidhi Company develops the habits of thrift and savings of their funds. It works like a community between its members and it also gives financial support to them at the time of their need.
  • The company operates its activities between its member. It is like a Non-banking financial company for its member. It takes deposits and borrowing from its member and lend it to the requisite member at a specified interest rate not below the rate fixed by the RBI.
  • The company gives instant financial support to its member. Less paperwork required for taking loans as the company is only for their members and not to any other person hence it is more secure than other NBFCs.
  • The members can fix their dead money into the company as fixed deposits and the interest rates on such deposits.
  • There is no limit on the members of the company; therefore, a large group of persons can take the benefit of the company’s objective. Moreover, the company is maintained by its member only so there is no chance for the involvement of outsiders.
  • The Nidhi company is exempted from following the guidelines of the RBI framed for the NBFCs. The Nidhi company operates its functions between its member only, and no other person is involved in the company. Therefore, the government grants the exemption from the compliances of the RBI regulations.
  • The members of the company can quickly get loans at lower interest rates as compared to the market rate by the company.
  • There is no specific qualification and experience required for the registration of Nidhi company and to run its activity.
  • As compared to other financial companies, NBFCs and banks it is effortless to maintain Nidhi company as it only needs to comply with the provisions of the companies act, 2013 as well as Nidhi Rule, 2014. Whereas the other companies require to follow the rules of various governing bodies like; Registrar of Companies, Securities and Exchange Board of India, Reserve Bank of India and other applicable authorities.
  • The lending and borrowing activity is limited to only between the company and its member no other person can take the benefit of this. If any person wants to make a part in these activities firstly, he shall have to register himself as a member of the company.
  • Reserve Bank Of India may frame the rules regarding its business activity. As the operation of the company relates to the finance and it carries the business of NBFC hence, it can be regulated by the RBI.
  • The company cannot issue preference shares and debentures and any other kind of debt instruments. If a company has preference shares before introducing this act, then it shall have to redeem all those preference shares according to with the terms of issuance.
  • The company cannot carry the business like chit fund, insurance services, leasing finance services, hire purchase finance and also cannot acquire securities of any other body corporate and also cannot receive, control, share purchase or control composition of the board of director of any other company.
  • The Nidhi company shall not open any current account with its members and shall not pledge any of the assets lodged by its member as security.
  • The Nidhi company shall not declare the dividend more than 25% but if it wants to do so, it shall have to take prior approval of Regional Director and shall have to transfer such amount or higher to the general reserve.
  • The company has to maintain the minimum limit of 200 shareholders within one year of its incorporation. Means the company has to join a minimum of 200 persons within a year after its registration.
  • The company cannot provide loan more than the Rs. 2,00,000/- if its deposits are less than Rs. 2 Crore and the company even can't issue the unsecured loan to anyone not even to its members.
  • The Nidhi company cannot open any branch office outside the territory of the state where the registered office of the company is situated.
  • The Nidhi company can open three branch office in a district but to open a branch office outside the region, it shall have to take prior consent of Regional Director and shall have to intimate to the Registrar of Companies within 30 days.

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Nidhi Limited Company Registration @16999/-

Frequently Asked Questions

Ques: What is the main function of the Nidhi Limited Company?

The Nidhi Limited Company is basically a non-banking financial company for its member only. It takes deposits from its member and issues loan to them at a specific interest rate. The main function is to develop the habit of saving among its members.

Ques: Is RBI approval is required before or after Nidhi Limited Company registration?

No, the Nidhi Limited Company does not need any kind of RBI approval before or after its registration. Because the Nidhi Company operates its function among its member only and there is no general public involvement and hence there is no RBI approval required.

Ques: What is the minimum capital requirement in the Nidhi Limited Company?

The minimum capital shall be Rs. 5 Lakh equity paid-up capital to start the Nidhi Company. However, for any other company like Private Limited Company or Public Limited Company or any other company, there is no minimum capital required, they can be started from Rs. 1000 as well.

Ques: What is the rate of interest applicable to Nidhi Limited Company?

Loan Interest Rate:
The maximum interest rate on loan charged by the Nidhi company is 7.5% + highest rate of interest offered on deposits and shall be calculated on reducing balance method. For example;
a. If Nidhi company offered 5% rate of interest on deposit then the maximum interest charged on loan is 7.5%+5% =12.5%.
b. If the loan of Rs. 12000/- is given on EMI basis and the member is paying Rs. 1000/- every month then the interest rate will be charged:
• 1st month – 12.5% on 12,000
• 2nd month – 12.5% on 11,000
• 3rd month – 12.5% on 10,000, and so on.
Deposit Interest Rate:
A Nidhi Company any % of interest rate on fixed deposits and recurring deposits but which shall not exceed the rate fixed by the RBI which the NBFCs pay to their public deposits.

Ques: How much loan can a Nidhi Limited Company provide to its member?

The amount of loan depends upon the amount of deposits taken by the Nidhi Limited Company from its member. The following is the limit of the loan lend by the Nidhi company to its members:

Deposits are:

  • Less than Rs. 2 Crore:    Rs 2,00,000
  • More than 2 Crores up to 20 Crore:   Rs 7,50,000
  • More than 20 Crores up to 50 Crore:    Rs 12,00,000
  • More than 50 Crore:     Rs. 15,00,000

Ques: Can a Nidhi Limited Company open its branch office?

Yes, a Nidhi Company can open a branch office but maximum three branches in a district and if a Nidhi Company wants to open a branch office outside the district then it shall have to take prior approval of Regional Director and the same shall have to intimate to the Registrar within 30 days.

Ques: Can a Nidhi Limited Company issue preference share or debts?

No, a Nidhi Company is restricted or prohibited to issue preference shares and debts to either its members or any other persons. The Nidhi Company can issue only equity shares to its members only.

Ques: What are the post compliances after the registration of a Nidhi Limited Company?

After the registration of Nidhi Company the following compliances shall have to comply:

  • There should be at least 200 members who hold shares in the Nidhi company within one year of its registration
  • The minimum Net Owned Fund shall be Rs. 10 Lakh or more
  • The ratio of Net Owned Fund to deposit should not be more than 1.20.
  • The unencumbered deposits shall not be less than 10% of deposits outstanding
  • File the half yearly return in NDH-3 within 30 days from the end of the half year
  • File annual return in NDH-1 within 90 days from the end of the financial year.
  • If Nidhi Company fails to comply with any above-mentioned compliance then file NDH-2 within 30 days to granting of an extension.

Ques: What are the prohibitions on Nidhi Limited Company?

The Nidhi Company is prohibited from the following functions:

  • To undertake the business of hire purchase, chit fund, leasing finance or acquisition or securities or insurance
  • To issue preference shares or debts to its members
  • To open the current account of its members
  • To issue any type of advertisement
  • To take deposits or lend the money to any person other than its members
  • To issue unsecured loan

Ques: What is the requirement of the annual compliance of Nidhi Limited Company?

Every Nidhi Company shall submit its annual financial statement to the registrar on a half-yearly basis and annual basis.

  • A half-yearly return shall be filed within 30 days from the end of half year in NDH-3 form,
  • An annual return shall be filed within 90 days from the end of a financial year

The above-mentioned forms shall be submitted along with the copy of balance sheet, profit & loss A/c, auditor report, board report, list of members and the notice of the meeting of members and other required documents.

Ques: Can a Nidhi Limited Company provide or take loans or deposits from the persons who are not a member of the company?

No, a Nidhi Company can operate its functions only among its member. It is restricted for the Nidhi company to lend money or accepts deposits from the person who is not a member of the company.