Nidhi Company is a company registered under the Companies Act, 2013, with an objective of cultivating the habit of thrift and savings amongst its members. Nidhi companies are allowed to take deposit from its members and lend to its members only.

Nidhi company is a class of NBFCs and RBI is empowered to issue directions to them in matters relating to their deposit acceptance activities.

  • Every company incorporated as a “Nidhi” shall have the last words “Nidhi Limited” as part of its name.
    According to rule 7, every Nidhi shall issue equity shares of the nominal value of not less than ten rupees each, no service charge shall be levied for the issue of shares and shall allot to each deposit holder, at least, a minimum of ten equity shares or shares equivalent to one hundred rupees.

  • Acceptance of deposit
  • 1. Outstanding deposits and ratio of net Owned Funds to deposits of not more than 1:20.
  • 2. Fixed deposits shall be accepted for a minimum period of six months and a maximum period of sixty months.
  • 3. Recurring deposits- minimum period of 12 months, maximum period of 60 months
  • 4. The maximum balance in a savings deposit account at any given time qualifying for interest shall not exceed one lakh rupees at any point of time, and the rate of interest shall not exceed two percent of the rate of interest payable on savings bank account by nationalized banks.


Separate Legal Entity

In the eyes of law, public limited company is a separate legal entity and can own property and also incur debts

Limited Liability

The members' / directors’ personal property is always safe in public limited company, no matter the debts of the business

Easy Management

The Board of Management of a Nidhi company controls the activities of the Nidhi company. Any change on the Board of Management can be done easily forms with the Registrar of Companies

Better Credibility

A Nidhi company has better credibility as compared to Mutual Benefit Organizations, since Nidhi companies are registered and monitored by the Central Government

Perpetual Succession

Public limited company remains in existence until it is legally wound up

Documents Required

  • Copy of

    Director’s PAN Card

  • Passport size

    Photograph of Directors

  • Copy of

    Aadhaar Card/ Voter identity card of directors

  • Copy of

    Rent agreement(If rented property)

  • Copy of

    Electricity/ Water bill (Business Place)

  • Copy of

    Property papers (If owned property)

  • Specific Requirement

    Landlord NOC (Format will be provided)

Minimum Requirement

  • Directors

    Minimum Three

  • Shareholders

    Minimum seven

  • DIN

    For all Directors

Registration Process

  • 6
    Incorporation Certificate
    5 to 7 days
  • 5
    Submission of MOA & AOA
    3 to 5 Days
  • 4
    Name Reservation
    2 to 3 days
  • 3
    Obtain DSC and DIN
    4 to 5 days
  • 2
    Verification of Information
    2 to 3 days
  • 1
    Collation of Information

You will get

  • DIN

    For 3 Directors

  • DSC

    For 3 Directors

  • Name

    Search & Approval

  • MOA


  • Registration Fees of


  • Pan Card of


Nidhi company is incorporated as a public company hence a minimum of seven shareholders are required. However Nidhi limited should have atleast two hundred members within a year to avoid being in default.

Minimum three and maximum 15 directors are required for a Nidhi conpany.

Within one year of incorporation, Nidhi company should have Net Owned Funds (capital invested) not less than ten lakh. 

In that case, Company will have to apply for extension with the Regional Director of the company in the Form NDH – 1.

Nidhi company shall within one year of its commencement shall ensure that it has minimum of two hundred members, net owned funds of ten lakh rupees or more and unencumbered term loan deposits of not less than 10% of the outstanding deposits and ratio of net Owned Funds to deposits of not more than 1:20.

Yes, according to rule 6, no Nidhi company shall carry on the business of chit funds, hire purchase, leasing finance, insurance or acquisition of securities issued by any body corporate, issue preference shares or open any current account with its members, accept deposits from or lend to any person, other than its members, take deposits from or lend money to any body corporate, etc.

Yes, according to rule 8, no Nidhi company shall admit a body corporate or trust as a member. A minor shall also be not admitted as a member.

Yes, Nidhi company can open branches if it has net profit after tax continuously during preceding three financial years. It can open more the three branches within the district ir any branch outside district after obtaining prior approval of the Regional Director.

No, you needn’t be available in person, Nidhi company incorporation process is online. A scanned copy of documents can be sent to us via mail, and we will handle the rest.