Nidhi Company Registration Online - Procedure, Documents Required, Fees

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.

1. Inculcates the habit of savings: The sole objective of Nidhi company is to promote the culture of savings among its members.
2. Few RBI guidelines: Nidhi company falls under NBFC category, but it does not require approval of Reserve Bank of India.
3. 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.
4. Separate Legal Entity: Nidhi Company is a separate legal entity which means it can acquire assets and incur debts on its own name.
5. Easy Formation: The process of Nidhi company formation is very simple and easy. There are very few requirements compared to other NBFCs.
6. Ease of Management: Even though Nidhi Company is an NBFC, it is very easy to manage and make changes in the organization

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:

Step 1: Fill our simple form and receive a callback from our team of experts

Step 2: Provide all the required documents for registration of the company and make 50% payment in advance.

Step 3: Your incorporation certificate including other documents will be delivered to you and you’ll have to make the balance payment.

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.

1. Passport size photographs of members
2. Copy of PAN Card of the members
3. Email address and phone number
4. Copy of Aadhar Card or Voter ID
5. Bank statement (not older than two months)
6. Proof of registered place of business
7. No Objection Certificate from the owner of the property

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. Direction Identification Number (DIN)
7. Digital Signature Certificate (DSC)
8. EPF and ESIC registration documents
9. Company Master data

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).

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