What is Nidhi Company?

Nidhi Company is one of the non-banking Indian Finance sector and recognized under companies Act, 1956. Their main business is lending and borrowing money between their members. Nidhi Company is the company which has been incorporated as Nidhi with the object of “cultivating the habitat of thrift and savings” amongst its members. Nidhi Company means “TREASURE” in India/Language.

Nidhi Company is a one of a class of NBFCs (Non- Banking Financial Company) and it doesn’t require any RBI license. Nidhi Company is easy to register and cheap to form.  Well Nidhi Company is a best possible entity to take deposit from and lend to Group of people.

Nidhi Company under the ambit of RBI (Reserve Bank of India)

  • NBFSCs comprising equipment leasing, hire purchase finance, loan, investment and residuary non-banking (RNBC) companies.
  • Mutual benefit financial company (MBFC)
  • Mutual benefit company i.e. A company which is working on the lines of a Nidhi company
  • Miscellaneous non banking company i.e. ChitFund company

Nidhi Company Registration Process 

Step 1: NIDHI COMPANY REGISTRATION: you can register a Nidhi Company within 20-30 Days, depending on ROC processing time.

Step 2: ACQUIRE DSC AND DIN: The DSC (Digital signature certificate) and DIN (Director Identification Number) they both are required for the proposed Directors within 5 to 7 days.

Step 3: NAME APPROVAL & LICENSE: You can apply for a name and license only when the DIN and DSC are available for at least 3 Directors and Nidhi Company can be made to MCA (Ministry Of Corporate Affairs). Name approval can be obtained in 3 to 5 days.

Step 4: NIDHI COMPANY REGISTRATION: Once the name is approved, registration can be submitted to MCA. Then MCA will approve the application in 5 to 7 days.

Requirements for Nidhi Company Registration

  • Requirements before registration
  • Requirements after registration


  1. Requirements before registration: The required list for a Nidhi Company is as follows-
  • Minimum seven members required, out of seven 3 are the Directors and these members can be your relatives too.
  • It shall have a minimum paid up equity share capital of Rs.5,00,000/
  • Documents are required like-

– PAN Card

– Identity Proof – (Voter ID, Aadhar card, DL – Anyone)

– Address Proof – (Bank statement/Passbook, Electricity Bill, Mobile Bill – Any)

– Passport Size Photograph

  1. b)     Requirement after registration: The required list for Nidhi Company is as follows-
  • Not less than Two hundred members;
  • Ratio of Net owned Funds to deposit of not more than 1:20.
  • Net Owned Funds of Ten lakh rupees or more;
  • Unencumbered term deposits of not less than 10% of the outstanding deposits as specified in rule 14;

General Restrictions

Rule 6 provide the restrictions. According to this rule no Nidhi shall carry on the business of –

  • Chitfund
  • Hire purchase Finance
  • Leasing finance
  • Insurance of securities issued by anybody corporate.

Advantages required for Nidhi Company Registration

  1. Separate Legal Entity
  2. Uninterrupted Existence
  3. Better Credibility
  4. Easy Management
  5. Limited Liability


We have discussed the essential requirements above. There are many other compliances and requirements. You can visit for more information on



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