Nidhi Company Registration in India
Starting a small financial business in India has become easier with the concept of Nidhi Companies. If you want to encourage savings and provide loans to a community of members, Nidhi Company Registration is one of the best options. If you want to lawfully operate a member-based loan and borrowing business, Nidhi Companies are the best option. The Companies Act of 2013 governs them, and the Ministry of Corporate Affairs (MCA) is in charge of them.
This page explains everything you need to know about Nidhi Company Registration, including benefits, process, eligibility, and documents required.
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What is a Nidhi Company?
A Nidhi Company is a type of Non-Banking Financial Company (NBFC) that focuses on cultivating savings among members and providing loans at reasonable rates. The fundamental idea is "members-only," meaning that only members are able to make deposits or take out loans.
Unlike other NBFCs, a Nidhi Company is not required to obtain a license from the Reserve Bank of India (RBI). Nonetheless, Section 406 of the Companies Act of 2013 and the Nidhi Rules of 2014 must be followed.
Why Register a Nidhi Company? (Key Benefits)
- Simple Formation: Compared to other NBFCs, registering a Nidhi Company as a Private limited Company requires less compliance.
- Low Capital Requirement: You can start with just ₹10 lakh paid-up capital, making it ideal for small-scale financial businesses.
- No RBI Approval Neede: Unlike other financial institutions, Nidhi Companies don’t require a license from RBI to operate.
- Encourages Savings: It helps members develop a habit of saving and provides easy access to secured loans.
- Limited Liability: Members enjoy limited liability protection, meaning their personal assets are safe.
- Low Risk Model: Loans are provided only to members, and deposits are accepted only from members, reducing risks.
Eligibility for Nidhi Company Registration
Before starting the process, you must meet certain basic requirements:
- Minimum Members: Three directors must be among the minimum seven members.
- Public Limited Company Structure: The business needs to create and register a PLC.
- Unique Name: The last part of the name must be "Nidhi Limited."
- Initial Capital:Minimum paid-up equity share capital of ₹10 lakh is required.
- Member Base Post Incorporation: Within one year, the company must have at least 200 members.
Documents Needed
Documents Required for Nidhi Company Registration
For Directors & Shareholders:
- PAN Card (Self-attested)
- Aadhaar Card / Passport / Voter ID
- Proof of residence (utility bill, bank statement, etc.)
- Passport-size photograph
For Registered Office:
- Rent agreement or ownership proof
- Latest utility bill (electricity, water, gas)
- NOC from landlord (if rented)
Company Documents:
- Memorandum of Association (MoA)
- Articles of Association (AoA)
Step-by-Step Process of Nidhi Company Registration
Here’s how you can register your Nidhi Company smoothly:
- Obtain Digital Signature Certificate (DSC)
All proposed directors must have a DSC to sign online forms.
- Apply for Director Identification Number (DIN)
Directors must obtain a DIN through the MCA portal.
- Name Reservation
File the RUN (Reserve Unique Name) application with MCA. The name must include “Nidhi Limited.”
- Drafting MoA & AoA
Create the articles of association (which contain the company's operating guidelines) and memorandum of association (which contains the company's aims).
- Filing SPICe+ Form
Submit the SPICe+ (Simplified Proforma for Incorporating Company Electronically) form to the MCA, along with all documents, fees, and declarations.
- Certificate of Incorporation
Once approved, the MCA issues a Certificate of Incorporation, and your Nidhi Company becomes legally registered.
Post-Incorporation Compliances
After registration, you must meet certain compliances to keep your Nidhi Company active:
- Minimum 200 Members within 12 months
- Maintain Net Owned Funds of ₹10 lakh or more
- Maintain 1:20 debt-to-equity ratio
- File annual returns & financial statements with MCA
Why Choose RegistrationGuru for Nidhi Company Registration?
At RegistrationGuru.in, we simplify the complex legal process of Nidhi Company Registration:
- Expert Guidance: Our team understands MCA rules and provides end-to-end support.
- Transparent Pricing: No hidden charges—just clear, affordable packages.
- Quick Turnaround: We handle documentation, filing, and approvals efficiently.
Whether you’re a first-time entrepreneur or an experienced business owner, we ensure your Nidhi Company is registered smoothly and complies with all legal requirements.
Conclusion
Nidhi Company Registration is a smart way to create a community-driven financial platform in India. With low capital needs, no RBI license requirement, and simplified compliance, it’s perfect for entrepreneurs who want to promote savings and lending within a trusted network.
By partnering with experts like Registration Guru you can focus on growing your members while we take care of the legal and compliance aspects.