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Nidhi Company Registration

Nidhi Company is a type of Non-Banking Financial Company (NBFC). The basic reason to get it registered is to borrow and lend money to its members.

* Offer valid for a limited time period only.

  • One DSC & three DINs

    The directors must be registered with the MCA.

  • Company Name Reservation

    We will guide you in picking a unique name for your company.

  • RBI Approval

    We will get in principle approval from RBI

All You Need to Know About Starting a Company

What is a Nidhi Company?

Nidhi Company is a type of Non-Banking Financial Company (NBFC). The basic reason to get it registered is to borrow and lend money to its members. It works on the principle of mutual benefit of its members by saving money. It does not require any license from RBI.
Permanent funds, mutual benefit funds, a mutual benefit company and benefit funds are examples of a Nidhi Company. The main idea behind creating a Nidhi Company is to borrow funds from members or lend to them for the mutual benefit of both parties. Chapter XXIV of Company Rules, 2014 has set upon the guidelines to be followed by a Nidhi Company.

Documents Required for Nidhi Company Registration

Document to be submitted by all directors: -

  • Self-attested copy of PAN Card

  • Self-attested copy of Driver's License/ Voter ID/ Aadhaar Card/Passport

  • Self-attested copy of Bank Statement/ Telephone Bill/Mobile Bill/ Electricity Bill

  • Passport-size Photograph

  • Specimen Signature Certificate

Basics of a Nidhi Company

  • Regulated by MCA & RBI
    Ministry of Corporate Affairs regulates the financial dealings and all the registration processes of a Nidhi company. All the activities conducted by the Nidhi Company related to the deposit acceptance are also come under the scanner of Reserve Bank of India.

  • Number of Members
    A Nidhi Company have to employ 200 members within a year of its formation. In case of failure in doing so, it has to apply for permission to extend the time limit for doing the same. Three directors and seven stockholders must be appointed on commencement.

  • Equity Capital
    A Nidhi Company need to have paid up equity share capital of Rs. 5 lakhs on commencement. Moreover, 10% of the total deposit collected from members need to be in a fixed deposit in a nationalised bank.

Advantages of Nidhi Company

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Minimum Rate to Borrow

As a member of Nidhi Company, rate of borrowing money form here is very less compared to borrowing from banks. It can be of most importance in times of need.

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Encourages Savings

A Nidhi company inspires all its members to save money for times of need. After all, a Nidhi company is a mutual benefit society in which members can lend or borrow money and receive financial aid among them.

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Fewer Complications

In Nidhi Company, borrowing and lending is less complicated than dealing with banks. A Nidhi Company permits its members to use their money efficiently with less complications.

Procedure for Nidhi Company Registration

  • A minimum of three directors need to apply for a DSC which is compulsory to file the Nidhi company registration documents. You have to provide us some scanned documents for doing so. Our representative will fill the form in online mode.
  • After applying for the DSC, we will apply for the company name and submit all the required documents. If all of your documents are in order, it will be done in 1 week.

FAQs on Nidhi Company

You need to appoint a minimum of three directors and have seven shareholders. So, a total of 10 individuals are needed to form a Nidhi. You need to register the company as a limited company under Companies Act, 2013. Nidhi Companies take almost a month or even longer to register.
Yes, you can expand operations.A minimum of three branches can be opened in a particular district. In case you want to expand outside the district or want to open more than three branches, intimation needs to be issued 30 days prior to opening to the Registrar of Companies.
The conditions laid down by the Act says that a Nidhi company should acquire a minimum of 200 members within one year. However, in case you have not been able to acquire the required numbers, you can apply for an extension with the authorities.
Any person can deposit, lend or borrow money through the provisions provided by Companies Act, 2013. They can all become members of the Nidhi provided they are not a corporation or a company.
A Nidhi can accept deposits not exceeding 20 times of its net owned assets as mentioned in the last audited statements.
The registrations controlled by the central government -- service tax, for example -- can be availed of online, whereas the state-government-controlled ones may or may not be. In some technologically advanced states, such as Karnata, they are, whereas in others they may not be.
You can always choose to do so. The procedure is a little tedious, but it is possible. It is very common for sole proprietors to convert into partnerships and private limited companies at a later stage.

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