Nidhi Company Registration - Fees, Online Procedure, Documents Required

Updated on October 18, 2022 06:16:39 PM

Most of the investment companies in India cater to a large amount of money, whereas banks provide very little scope for growth in savings. Nidhi Company provides the most effective and easy way to save your money with a wide scope of monetary growth. It is a type of public limited company and is governed by the Companies Act, 2013. Get to know the benefits, process, requirements and fees of Nidhi company registration.

Nidhi Company - Incorporation Certificate [Sample]

Nidhi Company Registration sample

What is Nidhi Company?

Nidhi Company is a type of Non-Banking Financial Company (NBFC). Its major function is lending and borrowing money to its members. The objective is to cultivate the habit of savings amongst its members and work on the principle of mutual benefits that are regulated by the Ministry of Corporate Affairs.

Nidhi Company is not required to receive the license from Reserve Bank of India (RBI), hence it is very easy and convenient to form. It is also known as Mutual Benefit Finance Company. It is registered as a public limited company and must include “Nidhi Limited” as the last words of its name.

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Benefits of Nidhi Company registration

Benefits of Nidhi Company Registration

Inculcates the habit of savings:

The sole objective of Nidhi company is to promote the culture of savings among its members.

Few RBI guidelines:

Nidhi company falls under NBFC category, but it does not require approval of Reserve Bank of India.

Limited Liability:

As per the Companies Act, 2013, directors and shareholders have limited liability. If the company suffers any losses or issues, personal assets of the directors and shareholders are secure.

Separate Legal Entity:

Nidhi Company is a separate legal entity which means it can acquire assets and incur debts on its own name.

Easy Formation:

The process of Nidhi company formation is very simple and easy. There are very few requirements compared to other NBFCs.

Ease of Management:

Even though Nidhi Company is an NBFC, it is very easy to manage and make changes in the organization.

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Nidhi Company registration Process

nidhi company registration process nidhi company registration process

Step 1. Application for Digital Signature Certificate (DSC)

Nidhi company registration is a complete digital process and therefore requirement of Digital Signature Certificate is a mandatory criteria. Directors as well as subscribers to the memorandum of the company need to apply for a DSC from the certified agencies. Obtaining a DSC is a complete online process and it can be done within 24 hours. This process involves 3 simple verifications that are document verification, video verification and phone verification.

Step 2. Application for the Name Availability

Name application for Nidhi Company can be done through SPICe RUN form which is a part of SPICe+ form. While making the name application of the company, industrial activity code as well as object clause of the company has to be defined.

Note: It should be ensured that business name does not resemble the name of any other already registered company and also does not violate the provisions of emblems and names (Prevention of Improper Use Act, 1950). You can easily check the name availability by using our company name search tool to verify the same.

Step 3. Filing of SPICe Form (INC-32)

Post name approval, details with respect to registration of the company has to be drafted in the SPICe+ form. It is a simplified proforma for incorporating a company electronically. The details in the form are as follows:

  1. Details of the company
  2. Details of members and subscribers
  3. Application for Director Identification Number (DIN)
  4. Application for PAN and TAN
  5. Declaration by directors and subscribers
  6. Declaration & certification by professional

Step 4. Filing of e-MoA (INC-33) and e-AoA (INC-34)

SPICe e-MoA and e-AoA are the linked forms which have to be drafted at the time of application for company registration.

Memorandum of Association (MOA) is defined under section 2(56) of the Companies Act 2013. It is the foundation on which the company is built. It defines the constitution, powers and objects of the company.

The Articles of Association (AOA) is defined under section 2(5) of the Companies Act. It details all the rules and regulations relating to the management of the company.

Step 5: Issuance of DIN, PAN, TAN & Certificate of Incorporation

Post approval of the above mentioned documents from the Ministry of Corporate Affairs; PAN, TAN & Certificate of Incorporation will be issued from the concerned department. Now, the company is required to open a current bank account by using these documents. You can contact us for assistance with your current bank account opening.

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Register your Nidhi Company Online with Professional Utilities

The process of registering a Nidhi Company is complicated and involves various compliances. Our experts at Professional Utilities can simplify the whole registration process for you. Register your Nidhi company online in 3 easy steps:

  • get in touch icon
  • documents required icon
  • get registered icon

Step 1:
Get in touch via call or contact form

Step 2:
Provide necessary documents

Step 3:
Get your incorporation registered in 14-21 working days

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Minimum requirements for Nidhi Company registration

  1. Minimum of seven members are required
  2. At least three members must be the directors of the company
  3. Minimum of 5 lakh rupees is required for share capital
  4. Issuing preference shares not allowed
  5. The objective of the company should be receiving deposits and lending to its members only.
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Documents required for Nidhi Company registration


  1. Passport size photographs of members
  2. Copy of Aadhar Card or Voter ID
  3. Copy of PAN Card of the members
  4. Email address and phone number
  5. Proof of registered place of business
  6. Bank statement (not older than two months)
  7. No Objection Certificate from the owner of the property
Documents Required for registration of Nidhi Company
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Documents you’ll get post incorporation


Post incorporation of Nidhi company, you’ll receive the following documents:

  1. Certificate of Incorporation
  2. Permanent Account Number (PAN) of the company
  3. Tax Deduction or Collection Account Number (TAN) of the company
  4. Articles of Association (AoA)
  5. Memorandum of Association (MoA)
  6. Director Identification Number (DIN)
  7. Digital Signature Certificate (DSC)
  8. EPF and ESIC registration documents
  9. Company Master data

Get Free Consultation

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Nidhi Company Registration Fees

Nidhi Company Registration Fees

The total cost of Nidhi Company registration in India, including government and professional fees, starts from ₹10,999 and takes around 14-21 working days.

Steps Cost (Rs.)
Digital Signature Certificate ₹7,000
Government Fee ₹1,800
Professional Fee ₹2,199
Total Cost ₹10,999*

Important Note: The total incorporation fees of a Nidhi Company varies from state to state. Refer to the map for state-wise prices.

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Total time required for Nidhi Company registration

On average, it takes around 14-21 working days to register a Nidhi company in India subject to document verification by the Ministry of Corporate Affairs (MCA).

What activities are prohibited for the Nidhi Company?

As Nidhi companies are involved in a non-banking financial transaction, they are prohibited from performing the following activities:

  1. Advertise themselves for deposits
  2. Chit funds
  3. Lotteries
  4. Insurance
  5. Leasing Finance
  6. Hire-Purchase finances
  7. Sell the assets of its members and keep it as a security for providing loans
  8. Entering into a partnership firm for carrying out lending and borrowing activities
  9. Accepting deposits or lending funds to the outsiders
What activities are prohibited for the Nidhi Company

Why Professional Utilities?

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Frequently Asked Questions (FAQs)

How can I open a Nidhi company?

One can start a Nidhi company in India by providing necessary documents and fulfilling the requirements of a Public Limited Company registration as per the Companies Act, 2013.

Who regulates Nidhi company?

The Ministry of Corporate Affairs regulates a Nidhi company.

How can I start a Nidhi Company in India?

One can start a Nidhi company in India by providing necessary documents and fulfilling the requirements of a Public Limited Company registration as per the Companies Act, 2013.

Is Nidhi company a NBFC?

Yes, Nidhi Company is a type of Non-Banking Financial Company (NBFC). It is also known as Mutual Benefit Finance Company.

Is Nidhi company profitable?

Yes, a Nidhi company can be profitable but the sole purpose is to borrow and lend money to its members only.

Can a Nidhi company give a vehicle loan?

No, it cannot give a vehicle loan as it is restricted for Nidhi companies to lend any type of loan.

Can a Nidhi company take a loan from a bank?

Yes, a Nidhi company can take a loan from the bank.

Can a Nidhi company give unsecured loans?

No, it cannot give unsecured loans. Nidhi company is strictly forbidden from giving any loans but it can give secured loans to a certain amount only.