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Nidhi Registration



NIDHI stands for National Initiative for Developing and Harnessing Innovations.

NIDHI Company is a financial institution or a type of NBFC involved in depositing and lending money to its members.

This company is registered under the Companies Act, 2013, and is managed, per the RBI’s guidelines.

All the transactions must be performed by the company’s members only.

Nidhi companies are created to lend and borrow money to all the members.


Some of the important benefits of NIDHI registration are as follows:

1.Easy Formation

A minimum of 7 members is required. 3 of these 7 members are appointed as directors of Nidhi company. The formation of a Nidhi company is a simple process.

2.No Compliance with RBI

There is no compliance with the RBI regulations. It deals with their shareholder members only while RBI has exempted them from core provisions of the RBI Act.

3.Less or No Risk

Since only the members are involved with the lending and depositing transactions by the members of the company so there is low risk taken by the company. 

4.Economical Registration

The registration of Nidhi companies are less cost as compared to other types of NBFCs. Nidhi company registration is not heavy on the directors’ pockets.

5.Certainty on Savings

The basic objective of Nidhi companies is to promote the culture of savings among the people of India

6.Net-owned Funding System

In Nidhi companies, the ratio of net-owned funding is 1:20.

This feature of Nidhi companies makes it cost-effective for owners to invest in new business ventures and grow their company with more capital and diversify their business.


They have to comply with two sets of norms, one of Public limited company as per Companies Act, 2013 and another is for Nidhi rules, 2014. 


The following conditions must be fulfilled before registering the NIDHI registration:

1.Apart from the core members , there must be minimum of 200 shareholders of the company and if at any time during the business of Nidhi company falls below 200 then it will be considered as default.

2. Any company wanting to register as a Nidhi company must have a minimum of Rs. 10 lakh of net-owned funds.

3.The ratio between the net-owned funds and the deposits cannot be more than 1:20 for any companies which want to register for Nidhi Company.

4. The name of the company always contain ‘Nidhi Limited’.

5. Companies registered under Nidhi company will be public companies.

6. The registering company must have paid an equity share capital of Rs. 5 lakh.


Given below is a list of documents one requires for Nidhi company registration:

Passport-sized photographs

No Objection Certificate (NOC) (signed by the landlord/owner)

Digital Signature (DSC)

Director Identification Number (DIN) of directors

Memorandum of Association of the company (MoA)

Articles of Association of the company (AoA)

PAN card

Address Proof:

Bank Statement

Driving License

Residence Card

Any other Government-issued identity proof having the address

Residential Proof

Mobile Bill

Telephone Bill

Electricity Bill

Bank Statement

Passport: Passports are only compulsory for the companies whose director is a foreign national.

Registered Office Proof: Registered office proof for Nidhi company registration because of the importance of the same in the issue of government-supported schemes and loans.


Nidhi Company is trending nowadays in the financial market .Nidhi company is is the safest route for starting a finance business at very less cost. People from all over India have been attracted towards registering Nidhi company after seeing its benefit.


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