Nidhi Company

NIDHI Company is governed by NIDHI Rules 2014. They are incorporated in the nature of public limited company and hence they have to comply with two set of norms, one of the public limited company as per companies act 2013 and another one is for NIDHI rules 2014. No RBI approval is necessary to register the company, as RBI has specifically exempted this category of NBFC in India to comply its core provisions such as registration with RBI. Every NIDHI shall with in a period of one year from the commencement must ensure that it has not less than 200 members.


  1. Features
    1. NIDHI Company registration is simple and less complex as compared to other types of finance companies like NBFC which require RBI licence to start.
    2. A NIDHI Company can be started with an initial capital of ₹5 lakh and requires at least 7 people to start with.
    3. NIDHI Company registration also requires three directors initially.
    4. Every promoter or director shall need a copy of PAN card, identity proof and address proof to apply for NIDHI Company.
    5. It takes around 15-20 days to get NIDHI Company registration in India.for detail information you can visit Ministry of Corporate Affairs (MCA).
  3. Only shareholders/members of NIDHI Company, who have membership identity, can invest in the scheme. To be a member, you must be 18 year and above as per age proof and must be citizen of India.

Documents Required

The documents required from the director and shareholders are:

  1. Pan Card/Aadhar Card
  2. Voter ID/Passport / License
  3. Two passport photo
  4. Bank Statement- latest 3 month(Bank Pdf)
  5. Email, Mobile No, Profession , Qualification and Duration of stay at present address

Documents required of the proposed registered address are as follows:

  1. Electricity bill/Other Utility Bill of the proposed registered address
  2. NOC or rent agreement from the owner of the premises
  3. Even if the director is owner of the property NOC is needed from him
  4. Bank Statement- latest 3 month(Bank Pdf)
  5. Email, Mobile No, Profession , Qualification and Duration of stay at present address
  6. Note:- All document must be scan from scanner with good quality


Nidhi Company registration process can be completed in around 10-14 working days after all document received completely from customer side; as follows:-

  1. Preparation of documents – 2 days
  2. DSC Application – 1 day
  3. Name Approval through RUN – 1-2 days
  4. Filing of form – 2 days
  5. Approval – 8-10 days


  1. Documents
  2. The followings documents are required for registration of NIDHI Company:-
    1. Copy of director’s & partners PAN card, Aadhar card, voter ID/passport/driving licence with self attested.
    2. Two passport size photographs of the Directors & partners.
    3. E-mail identities and mobile numbers of the directors/partners/members.
    4. Minimum 3 proposed names of the company as per your priority.
    5. Digital signature certificate(DSC) generated by our professionals.
    6. Director identification number(DIN) of the directors generated by our professionals.
    7. Copy of rent agreement (if rented property).
    8. Latest month electricity/water bill (business place).
    9. Copy of property papers (if owned property).
    10. Landlord NOC (format will be provided).
  3. Procedure
  4. The procedure for registration of NIDHI Company
    1. For the registration process the first thing would be the submission of all the required documents to the company professionals OR representatives.
    2. After the submission of your documents The Legal Bank team would generate the DSC and DIN to you after your approval.
    3. The name you would propose will be than verified and would be approved(if available).
    4. The details will be filled in the SPICe form.
    5. The submission of SPICe form will be made done after that.
    6. And your work after these steps would be complete, with in 15-20 working days your NIDHI company will be formed.


Benefits of NIDHI Company are as:

  1. Benefit of NIDHI Company is high rate interest of 7.5%. And NIDHI Company can earn max 20% interest on loans in reducing balance method.
  2. Registration of NIDHI Company is simple as compared to other companies.
  3. No need to get an approval from RBI.
  4. Minimum start-up capital required of ₹5 lakhs.


    Following provisions are applicable to NIDHI Companies.
    1. As they are incorporated into the nature of Public Company so rules and regulations of Companies Act, 2013 are applicable.
    2. RBI provisions related to Interest rate payable on deposit are applicable to NIDHI Companies. But the core provisions of RBI are not applicable to NIDHI Companies as RBI has exempted the NIDHI Companies from the same.
    3. NIDHI Rules, 2014.
    As to incorporate a NIDHI Company it is to be registered as a Public Limited Company. So, to incorporate a NIDHI Company it is necessary to fulfil following criteria:
    1. It should have at least 3 Directors.
    2. It should have at least 7 Members.
    3. The main objective to be written in the MOA should be to cultivate the habit of thrift and savings among its members. And it can accept deposits and lend money only to its members and shall work for the mutual benefit of its members.
    Once the NIDHI Company is incorporated it must fulfil the following requirements:
    1. It must have at least 200 members/shareholders.
    2. Minimum Net Owned Fund should be ₹10 Lakhs.
    3. Unencumbered term deposit must be at least 10% of the term deposit.
    4. The ratio of Net Owned Fund to term deposit should not be less than 1:20.
    The exclusive advantage which is offered by NIDHI Companies are:-
    1. It is a single office institution governed exclusively by its members with no involvement of the third party.
    2. Provide loans at minimal interest rates and minimum documentation.
    3. Secured investments are guaranteed by such companies.

Yes, the Deposits with such companies are safe and secure because the Ministry of Corporate Affairs and Reserve Bank of India has framed rules and regulations to ensure the safety and security of Deposits. And the NIDHI Company compulsorily abide by the rules of Central Government

The NIDHI Company uses the funds in lending to shareholders as per NIDHI Rules. It lends such money in the form of small loan for business and finance.

Any person who is above 18 years of age as per the standard age proof can become a member of the NIDHI Companies. The person desirous of becoming a member should have valid ID Proof and Address Proof.

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