Nidhi Company Registration in India
Start Your Own Member-Based Financial Institution | Register Your Nidhi Company with Nikitha Associates
What is a Nidhi Company?
A Nidhi Company is a type of Non-Banking Financial Company (NBFC) recognized under Section 406 of the Companies Act, 2013 and governed by Nidhi Rules, 2014. Its core objective is to promote the habit of thrift, savings, and mutual benefit among its members.
Nidhi companies accept deposits and lend money only to their members, offering a secure and simplified model of community finance. It is ideal for small financial groups, local lending circles, and microfinance initiatives.
At Nikitha Associates, we offer expert assistance in setting up Nidhi Companies with full regulatory compliance and step-by-step support.
Key Features of a Nidhi Company
- Registered as a Public Limited Company
- No RBI approval required (since it deals only with members)
- Encourages saving habits and financial discipline
- Low operational risk and high trust among members
- Limited operations (within one state for the first few years)
Eligibility Criteria for Nidhi Company Registration
To register a Nidhi Company, the following conditions must be met:
- Minimum 7 members (with at least 3 directors)
- All members must be individuals (no corporate bodies)
- Must be registered as a Public Limited Company
- Must include “Nidhi Limited” at the end of the company name
- Minimum paid-up capital of ₹10 lakh
- The company must not issue preference shares
Step-by-Step Process of Nidhi Company Registration
Step 1: Acquire Digital Signature Certificates (DSC)
All proposed directors must obtain Class 3 DSCs for online document signing.
Step 2: Obtain Director Identification Number (DIN)
Apply for DIN through the SPICe+ form while submitting incorporation documents.
Step 3: Name Reservation (SPICe+ Part A)
Propose two unique names ending with “Nidhi Limited“. Ensure names align with MCA guidelines.
Step 4: File SPICe+ Part B for Incorporation
Submit incorporation form with:
- Director details
- Capital structure
- MOA (object clause focused on thrift & mutual benefit)
- AOA and declaration forms
Step 5: PAN, TAN & CIN Allotment
Once approved, MCA issues:
- Certificate of Incorporation
- Company PAN & TAN
- Corporate Identification Number (CIN)
Step 6: Apply for Opening of Bank Account
Open a bank account in the company’s name to deposit the capital and begin operations.
Documents Required for Nidhi Company Registration
From Directors and Members:
- PAN card
- Aadhaar / Voter ID / Passport / Driving License
- Passport-size photo
- Email ID and phone number
For Registered Office:
- Utility bill (electricity, gas, or water – not older than 2 months)
- Rent agreement (if rented premises)
- No Objection Certificate (NOC) from the property owner
Timeline for Nidhi Company Registration
Stage | Timeline |
DSC & DIN Application | 1–2 working days |
Name Reservation | 2–3 working days |
Filing SPICe+ Form | 4–5 working days |
COI & PAN/TAN Allotment | 2–3 working days post-approval |
Total Time: 10–15 working days (approx.)
Post-Incorporation Compliance for Nidhi Companies
Within 1 year of incorporation, the Nidhi Company must:
- Have at least 200 members
- Maintain net owned funds of ₹10 lakh or more
- Maintain a ratio of net owned funds to deposits not exceeding 1:20
- Unencumbered term deposits of at least 10% of outstanding deposits
Annual Compliances:
- NDH-1 (return of statutory compliances)
- NDH-2 (application for extension, if applicable)
- AOC-4 and MGT-7 (financial statements and annual returns)
- Income tax returns and other filings
Why Choose Nikitha Associates for Nidhi Company Registration?
- ✅ Experienced Legal & Financial Experts
- ✅ End-to-End Online Registration Process
- ✅ MOA & AOA Tailored to Nidhi Objectives
- ✅ Assistance with ROC Filings & NDH Forms
- ✅ Post-incorporation Compliance Support
We ensure your Nidhi Company is fully compliant, legally strong, and ready to serve its members.
