Nidhi Company Registration In 10 days. From Anywhere.At a Single Click

  • DSC (7 DSC)
  • DIN for 3 Directors
  • Company Name Reservation (1 Run)
  • Spice Form / MOA & AOA (1 Spice)
  • Corporate Identification Number
  • PAN & TAN
  • Bank Account Opening template
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Nidhi Companies in India are created for cultivating the habit of thrift and savings amongst its members. Nidhi companies are allowed to borrow from its members and lend to its members. Therefore, the funds contributed for a Nidhi company are only from its members (shareholders). Nidhi companies are minute when compared to the banking sector and is mainly used to cultivate a savings amongst a group of people. To learn more about starting a Nidhi Company in India, you can also refer to the article “Starting a Nidhi Company” found in the IndiaFilings Learning Center. In this article, we mainly look at the nuances for registration of a Nidhi Company in India.

Nidhi Company is a company registered under the Companies Act, 2013, which has a sole 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. Therefore, the funds contributed for a Nidhi company are only from its members (shareholders) and used only by the shareholders of the Nidhi Company. Nidhi company is a class of NBFCs and RBI is empowered to issue directions to them in matters relating to their deposit acceptance activities. However, in recognition of the fact that these Nidhis deal with their shareholder-members only, RBI has exempted the notified Nidhis from the core provisions of the RBI Act and other directions applicable to NBFCs.

Therefore, Nidhi Company is an ideal entity to take deposit from and lend to a specific group of people. Nidhi Company can’t deal with chit funds, hire-purchase finance, leasing finance, insurance or securities business.It is strictly prohibited from accepting deposits from or lending funds to, any other person except members. Also, it can’t advertise itself to ask for any deposits. Minimum of seven members is required to start a Nidhi Company out of which three members must be the directors of the company.Nidhi Company is the most prevalent and popular type of corporate legal entity in India. Partnership Company registration is governed by the Companies Act, 2013 and the Companies Incorporation Rules, 2014.





  1. KYC of all the Directors and Shareholders
  2. Minimum 7 Members and 3 Directors required. Directors and Members can be the same.


  3. Digital Signature
  4. Digital signature (DSC) is a basic requirement to initiate the Nidhi Company Registration procedure as all the forms are submitted should be self-attested


  5. Name Approval
  6. The Proposed name of the Name of Nidhi company must be unique and it should not be similar. The name can be reserved through Reserve Unique Name (RUN) facility


  7. Final Incorporation (MOA &AOA )
  8. Once the name is approved the Nidhi Company Registration application is submitted in SPICe Form along with Nidhi company’s Articles of Association and Memorandum of Association. After proper inspection of the application, COI is issued.


  9. PAN & TAN
  10. PAN and TAN applications can be done along with Nidhi Company Registration as it is included in the SPICe Form.





8 Key Points to Know Before You Start a Nidhi Company in India

  1. Lowest Fees
  2. You can start Nidhi Company in less than Rs 20,000/-


  3. Regulator
  4. Companies Act 2013 & Nidhi Rules 2014 Regulates the function and operations of Nidhi Company in India.


  5. No Approval from RBI
  6. Nidhi Company is outside the preview of Reserve Bank of India. It does not require a license from RBI to operate a loan business in India.


  7. No Microfinance Activity
  8. No Microfinance Activity


  9. Minimum 200 Members
  10. Within 12 month’s minimum 200 members should be added


  11. Interest on Loan
  12. You can charge up to 20% p.a. by following the reducing balance method.


  13. Branch
  14. District level operations for initial 3 Years. After that 3 offices can be set up within the district or outside the zone after taking the approval from the Regulator Director.


  15. Loan against Security
  16. A Nidhi Company can only give credits against security. These securities include Gold, Property, and FD & LIC.

Frequently Asked Questions


A Nidhi Company is a Company which carries on the business of accepting deposits and lending the same on demand. Nidhi Company is similar to NBFC but the only basic difference between the two is that Nidhi Companies accept deposits only from its members. The main aim of these companies is to work for the mutual benefit of its members. These companies are not entitled to carry on the business of Hire Purchase Financing, Insurance, Chit Funds, and Acquisition of securities or Issue of any Debt Instruments.

No, unlike other NBFCs, Nidhi Company Registration and regulation is exempted from core provisions of Reserve Bank of India.

Both such entities are different on various levels. Nidhi is not regulated by RBI and Nidhi Company Registration requires a much smaller amount of capital as compared to Rs. 2 Crore paid capital requirement for NBFCs.

Nidhi Company Registration, as well as regulation, is done by the Ministry of Corporate Affairs. All the activities are done as per the provisions of Nidhi Rules, 2014.

As Nidhi Companies are not regulated by RBI, in order to ensure smooth and transparent operations of Nidhi Company central government has introduced Nidhi Rules, 2014. These rules contain the governing principles for Nidhi company operations.

After Nidhi Company registration the most important part is to know that you can only accept deposits from your registered members.

After Nidhi Company registration the most important part is to know that you can only accept deposits from your registered members.

After Nidhi Company registration the most important part is to know that you can only accept deposits from your registered members.

After Nidhi Company registration the most important part is to know that you can only accept deposits from your registered members.

After Nidhi Company registration the most important part is to know that you can only accept deposits from your registered members.

After Nidhi Company registration the most important part is to know that you can only accept deposits from your registered members.

After Nidhi Company registration the most important part is to know that you can only accept deposits from your registered members.

After Nidhi Company registration the most important part is to know that you can only accept deposits from your registered members.

After Nidhi Company registration the most important part is to know that you can only accept deposits from your registered members.

After Nidhi Company registration the most important part is to know that you can only accept deposits from your registered members.

After Nidhi Company registration the most important part is to know that you can only accept deposits from your registered members.

After Nidhi Company registration the most important part is to know that you can only accept deposits from your registered members.

No. Nidhi Company is not authorized to open a current account with its members.

No, Nidhi company is neither authorized to acquire through the purchase of its securities nor does it has the power to control its management or change the composition of its management. For any such activity previous approval from the respective Regional Director is required to be obtained after passing a special resolution in its general meeting.

Nidhi Companies are not authorized to carry on any other kind of business other than lending and borrowing on its own name.

Yes. It cannot open another branch until it has earned a net profit after tax consecutively for three straight years after successful Nidhi Company registration.

After meeting the condition of earning consecutive profits for 3 years, Nidhi Company is allowed to open 3 branches in the same district where Nidhi Company registration is done. However, for opening any more branched either inside or outside the district boundaries prior permission from the Regional director is required.

No, Nidhi Company can only issue secured loans to its members.

Nidhi Company can issue secured loans only against following securities:

  1. Goal, Silver, other precious metal and jewelry.
  2. Immovable Property
  3. Government securities, national saving certificates, insurance policies, Fixed Deposit receipts etc.

Nidhi Company is not allowed to issue the following type of loans:

  1. Personal Loans
  2. Asset/ Vehicle finance
  3. Microfinance
  4. Hire-purchase

Enterslice has branch office across India. As a result, we provide PAN-India services. Besides, Nidhi company registration in India is a totally online procedure. Thus, we provide Nidhi company Registration services all over India irrespective of where you want your registered office to be located at.

At Enterslice, we have a group of expert professionals like Chartered Accountants, Company Secretaries, lawyers and other industry experts who are bringing in their deep insight into the laws as well as current industry atmosphere. we ensure to solve all your queries and execute all the order with full dedication and focus.