Nidhi Company Registration
Nidhi companies are non-banking financial institutions created for cultivating the habit of thrift and savings among their members. We help you register, comply and operate your Nidhi company in line with MCA & RBI guidelines.
Nidhi Company Registration
Overview
A Nidhi company is a type of non-banking financial company, formed primarily to borrow and lend among its members. Nidhis are governed by the Companies Act, 2013 and by RBI’s ‘Nidhi Rules’. They are popular for community savings and member-based lending.
Key Points Governing Nidhi Company
- Must have a minimum number of members and prescribed net owned funds.
- Restricted acceptance of deposits — only from members.
- Limits on lending, deposit interest rates, and other prudential norms as per MCA/RBI.
BENEFITS OF ESTABLISHING A NIDHI COMPANY
Why entrepreneurs and communities choose Nidhi companies
Member Savings
Encourages habit of thrift and regular savings among members.
Access to Low-cost Credit
Members can avail loans at reasonable rates from pooled member deposits.
Community Focused
Operates for benefit of members rather than external shareholders.
Simple Compliance
Regulatory framework is tailored for member-based lending with defined norms.
Nidhi Company Registration Process
High-level steps to incorporate a Nidhi Company
Name Approval
Apply for name reservation with MCA (RUN / SPICe applications).
Incorporation Filing
File SPICe+ / eForms with MOA, AOA, identity and address proofs of members and directors.
Obtain Certificate
On approval, ROC issues Certificate of Incorporation. Begin post-incorporation formalities.
Post Incorporation Compliance
Maintain minimum members, file statutory forms, open bank account, and start operations as per Nidhi Rules.
Documents Required
Typical documents and materials submitted with the application
Identity Proof
PAN / Aadhaar or Passport of directors and members.
Address Proof
Address proof like utility bill or bank statement for registered office.
MOA & AOA
Drafted Memorandum & Articles of Association with Nidhi-specific clauses.
Consent & Declarations
Signed declarations, director consent (DIR-2) and member list.
Registered Office Proof
Proof of office address and NOC from owner if property is rented.
Resolution
Board resolution approving incorporation and appointment of directors.
Financials
If applicable, financials or statement showing initial funding and sources.
Photographs
Passport-sized photographs of directors and authorised signatories.
Requisites & Mandatory Compliances
Requisites Prior to Incorporation
- Minimum 3 directors and 7 members to commence Nidhi operations.
- Minimum net owned fund as prescribed by MCA/RBI (check current limits).
- Registered office address and MOA/AOA with Nidhi-specific objects.
Post-Incorporation Compliances
- Maintain minimum number of members and net owned funds within timelines.
- File annual returns and financial statements with ROC on time.
- Follow restrictions on acceptance of deposits, lending limits and disclosures.
Factors to be Considered before selecting Nidhi Company
- Community or member base strong enough to sustain deposits & lending.
- Capability to maintain compliance, accounting and audit requirements.
- Understanding limitations — Nidhi’s business is limited to members only.
- Prudential norms and reporting obligations to be strictly followed.
FAQs on Nidhi Company Registration
Please reach us at contact@harshdeepnarula.in if you cannot find an answer to your question.
Any group of persons can incorporate a Nidhi company by complying with requirements like minimum members, directors and net owned funds.
Nidhis can accept deposits and lend only to members; they cannot undertake banking business like NBFCs.
Minimum of 7 members are required at incorporation and the company must meet minimum net owned funds.
Nidhis are registered under MCA and follow RBI’s Nidhi Rules; separate RBI NBFC license is not applicable for Nidhi activities.
Net owned funds requirement is prescribed by MCA and may be updated — consult us for the latest threshold.
Ready to incorporate your Nidhi Company?
We provide end-to-end assistance — incorporation, MOA/AOA drafting, ROC filings, KYC and post-incorporation compliance.
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