Nidhi Company- 2025
Nidhi Company Registration in India
Looking to start a finance-related business that encourages savings and offers secured loans to your members? A Nidhi Company could be the right option for you. It’s a great way to build a small financial community that runs on mutual benefit and trust.
In this blog, Legal Darbar breaks down everything you need to know about Nidhi Company registration in India — meaning, features, registration process, rules, and why it’s an ideal structure for community-based finance.
What is a Nidhi Company?
A Nidhi Company is a type of Non-Banking Financial Company (NBFC), incorporated under Section 406 of the Companies Act, 2013, and governed by Nidhi Rules, 2014. Its core objective is to promote thrift (savings) and provide loans to its members only, using the funds contributed by those very members.
Unlike other NBFCs, a Nidhi Company does not require RBI approval to operate. It is ideal for community lending, microfinance, and building a culture of saving within a group.
Key Features of a Nidhi Company
Operates only among members
Accepts deposits and offers loans with lower interest rates
No RBI license needed
Minimum 200 members required within 1 year of registration
Recognized under MCA as a mutual benefit society
Documents Required for Nidhi Company Registration
For Directors/Shareholders:
PAN Card
Aadhaar Card / Passport / Voter ID
Passport-size Photo
Email ID and Phone Number
For Registered Office:
Electricity or Water Bill
Rent Agreement (if rented)
NOC from owner
Additional:
MOA (Memorandum of Association)
AOA (Articles of Association)
Digital Signature Certificates (DSC)
Director Identification Numbers (DIN)
Step-by-Step Process of Nidhi Company Registration:
1. Apply for DSC & DIN
All directors must obtain Digital Signature and Director ID.
2. Name Approval (RUN)
We apply for a unique name with the suffix “Nidhi Limited”.
3. Filing of Incorporation (SPICe+ Form)
All company details, director information, and documents are submitted to the Ministry of Corporate Affairs (MCA).
4. MOA & AOA Drafting
We prepare documents to define your company’s scope and internal rules.
5. Certificate of Incorporation (COI)
Once approved by MCA, you receive the COI along with Company PAN & TAN.
6. Post-Incorporation Compliance
Within 1 year, the company must:
Have 200 members
Maintain Net Owned Funds (NOF) of ₹10 lakhs
Maintain a ratio of 1:20 for Net Owned Funds to Deposits
Benefits of Registering a Nidhi Company:
| Benefit | Description |
|---|---|
| Low Risk Finance | Loans only to members reduce risk |
| No RBI Compliance | Easier to manage without RBI registration |
| Encourages Savings | Promotes financial discipline among members |
| Easy to Set Up | Simple online process with MCA |
| Separate Legal Entity | Offers legal protection and credibility |
Restrictions for Nidhi Companies:
To ensure safe and ethical operation, Nidhi Companies cannot:
Deal with non-members
Advertise for deposits
Carry out chit funds or hire purchase businesses
Open current accounts for members
Issue preference shares, debentures, or other securities
Why Choose Legal Darbar for Nidhi Company Registration?
We offer a complete and affordable solution for your Nidhi Company registration:
Consultation on eligibility and structure
End-to-end document preparation and filing
Fast turnaround & MCA approval
Guidance on post-incorporation compliance
Dedicated legal & compliance team
All services are delivered 100% online, with full transparency and support.
Conclusion:
A Nidhi Company is a powerful financial structure designed for community-based lending and saving. It’s perfect for those who want to create a low-risk, ethical, and legally recognized financial institution for members.
With Legal Darbar, your Nidhi Company registration is simple, legal, and fully online. From start to finish, we handle everything so you can focus on building your business.
Frequently Asked Questions (FAQs):
The minimum paid-up capital required is ₹10 lakhs.
No. Nidhi Companies can only deal with registered members.
No. Nidhi Companies are exempt from RBI licensing, but they must comply with MCA and Nidhi Rules.
Typically 15–20 working days, depending on document readiness and government approval.