India's one of the highest-rated legal tax and compliance guidance platform.
4.9 out of 5
(8521)
Verified
Siddhu ManojFounder & CEO of Two-LYP Computations Pvt. Ltd.
“Incorporating my Startup with IncorpX was an incredibly smooth and hassle-free experience. The team was highly professional, guiding us every step of the way with clear communication and prompt support. The registration process was fast, and every detail was handled with precision and accuracy. Highly recommend IncorpX for anyone starting a business.”
Abhishek LohaniDirector at Lohani Learnings
“Company is good and service is also smooth. I used their compliance service and the response was timely with no delay and price are also convenient. They are always available to cater your need.”
Chandan Kr. ChaudharyFounder of Creative Minds
“I am very satisfied with the team of IncorpX for providing the top notch services. Team of IncorpX was giving the update on daily basis was one of the best thing which I experience in Corporate. keep doing it. Thank you!”
Jayavijaya SJFounder of Agro Farms
“Don't think twice.Got my company incorporates here. Tbh very impressed by the quality of service provided by this team. Very organized and friendly team. Had a smooth and peaceful experience. Timely regular updates were provided by the team. Overall a great experience.”
Anoop KrishnanFounder of EIGHTH DAY FORGE
“It's rare to find a service provider who makes the process feel personal - IncorpX absolutely did. From day one, they patiently explained every detail without any jargon, making it easy to understand and stress-free. There was zero chasing, no delays-just efficient, smooth execution all the way through. I felt supported, heard, and confident at every step of registering my company EIGHTH DAY FORGE (OPC) Private Limited. Thanks to Mr. Sriram and his wonderful team.”
Ramesh LankeFounder of EKnal Technologies
“IncorpX made the entire registration process for our company, EKnal Technologies, smooth and stress-free. Their team was professional, efficient, and incredibly supportive from start to finish. Highly recommend them to any founder looking for a reliable partner in their business journey! Special shoutout to Sriram and Aswin-your support, clarity, and responsiveness made the whole process incredibly smooth.”
700+
Businesses Incorporated Every Month
1000+
Ratings Trusted by 2000+ Clients
250+
Professional Network
WHY CHOOSE US?
Expert Legal Team
Experienced legal experts in company formation and corporate law.
Fast Turnaround
Kickstart your venture with efficient company setup, generally processed within a week.
Dedicated Support
Personal manager by your side, every step of the way and beyond.
Complete Documentation
We handle all paperwork and ensure full legal compliance.
Business Growth Tools
Free business resources to fuel your company's success from day one.
24/7 Customer Service
Round-the-clock assistance for all your concerns.
Ready to Start Your Nidhi Company?
Register your Nidhi Company with professional guidance - setup support from ₹999. Typically completed in 7 working days
HERE'S HOW IT WORKS
1. Fill the Form
Simply fill the above form to get started.
2. Call to discuss
Our startup expert will connect with you & complete legalities.
3. Register Your Nidhi Company
Get professional assistance with Nidhi Company incorporation and compliance.
SIMPLE & TRANSPARENT PRICING
MOST POPULAR
Nidhi Company Registration Package
₹999 /one-time
Complete within 7 days
7-day turnaround 100% guaranteed
Incorporation Certificate
Digital Signature Certificate (DSC)
NDH-4 Declaration Filing
GST Registration Assistance
Director Identification Number (DIN)
Complete Documentation Support
Company PAN & TAN
Bank Account Opening Assistance
Nidhi Rules Compliance Guide
Post-Incorporation Advisory
*Government fees are additional and vary based on company structure
4.9/5 based on 1000+ reviews
Money back guarantee
Secure payment
Top rated service
IncorpX Prime
An all-inclusive solution for startups and expanding enterprises seeking a streamlined, compliant incorporation process.
Key Benefits
Personalised support from dedicated incorporation specialists.
Application prepared and filed within 2 days.
24/7 customer assistance.
Important Notes
We strive to register your preferred business name whenever feasible.
Alternative name suggestions are provided if the preferred name is not approved.
Package includes first-year compliance services: auditor appointment, annual filings, and related obligations.
Nidhi Company Registration is the ideal choice for entrepreneurs looking to start a mutual benefit financial institution in India. Governed by the Companies Act, 2013 and regulated under Nidhi Rules, 2014 by the Ministry of Corporate Affairs (MCA), a Nidhi Company is a type of Non-Banking Financial Company (NBFC) that operates exclusively for its members. It promotes the habit of thrift and savings among its members and provides loans only to its members.
Unlike traditional NBFCs, Nidhi Companies are exempt from the core provisions of the Reserve Bank of India (RBI) Act, 1934, making them easier to operate without RBI licensing. The primary objective is to cultivate a savings culture within a closed community, where members deposit funds and borrow from the collective pool at reasonable interest rates.
The Nidhi Company registration process involves incorporation as a Public Limited Company with a specific objective of cultivating thrift among members. After incorporation, the company must meet specific criteria including minimum member count, Net Owned Funds (NOF), and ratio of Net Owned Funds to deposits within specified timelines.
At IncorpX, we specialize in Nidhi Company Registration across India. Our team of expert Chartered Accountants (CAs) and Company Secretaries (CSs) guides you through every step - from incorporation to NDH-4 filing and ongoing compliance. We handle the complexities so you can focus on building your member community and financial services.
What is a Nidhi Company?
A Nidhi Company is a unique type of Non-Banking Financial Company (NBFC) recognized under Section 406 of the Companies Act, 2013. The word "Nidhi" means "treasure" in Hindi, and these companies are designed to be a treasure for their members by encouraging savings and providing affordable loans within a close-knit community.
The fundamental principle of a Nidhi Company is mutual benefit. It accepts deposits only from its members and provides loans only to its members. This creates a closed financial ecosystem where the community collectively benefits from the pooled resources. Unlike banks, Nidhi Companies cannot accept deposits from or lend to the general public.
Nidhi Companies are regulated by the Ministry of Corporate Affairs (MCA) under the Nidhi Rules, 2014, rather than the RBI. This makes them unique among financial institutions in India. They must include "Nidhi Limited" as a suffix in their name and operate with the sole objective of cultivating thrift and savings habits among members.
Key Characteristics of a Nidhi Company:
Mutual Benefit Organization:
Operates exclusively for the benefit of its members. No transactions with non-members are allowed.
Member-Only Operations:
Accepts deposits only from members and provides loans only to members, creating a closed financial community.
RBI Exemption:
Exempt from RBI's core provisions for NBFCs, making operations simpler and less regulated.
Thrift Promotion:
Primary objective is to inculcate savings habits and financial discipline among members.
Did You Know?
India has over 10,000 registered Nidhi Companies with combined member deposits exceeding ₹30,000 crores. States like Tamil Nadu, Andhra Pradesh, and Kerala have the highest concentration of Nidhi Companies, reflecting strong community-based financial traditions in these regions.
Types of Deposits Accepted by Nidhi Companies:
Nidhi Companies can accept various types of deposits from their members, subject to
the limits and conditions prescribed under Nidhi Rules, 2014. Understanding these
deposit types is essential for both operators and members.
Fixed Deposits:
Members can place fixed deposits for terms ranging from 6 months to 60 months.
The interest rate is determined by the company but subject to maximum limits
prescribed under Nidhi Rules. This is the most popular deposit type.
Recurring Deposits:
Monthly recurring deposit schemes where members contribute a fixed amount monthly
for a specified period. Interest is paid on the accumulated balance at maturity.
Savings Deposits:
Similar to savings accounts in banks, members can deposit and withdraw money
subject to certain conditions. Interest rates are typically lower than fixed deposits.
Current Deposits:
Non-interest bearing deposits that allow frequent transactions. Useful for members
who need regular access to their funds for business purposes.
The maximum deposit that can be accepted from a single member is 10% of the total deposits
of the Nidhi Company. This ensures diversification and reduces risk concentration.
What Are the Key Features of a Nidhi Company?
A Nidhi Company offers unique features that make it an attractive option for community-based financial services. Here are the standout features:
1. RBI Exemption
Nidhi Companies are exempt from RBI's core NBFC provisions, making them easier to register and operate without complex licensing.
2. Mutual Benefit Model
Operates exclusively for members' benefit. Deposits come from members, and loans go only to members, creating a closed trust-based system.
3. Lower Capital Requirement
Minimum paid-up equity share capital of ₹5 lakhs is required, making it accessible for community entrepreneurs.
4. Limited Liability
Being a Public Limited Company, members' liability is limited to the shares held. Personal assets remain protected.
5. Simple Operations
Restricted to accepting deposits and providing loans to members only. No complex banking or NBFC operations required.
6. Community Focus
Perfect for community-based financial services where trust and mutual benefit are the foundation of operations.
7. Member Governance
Democratic structure where members have voting rights and participate in major decisions through general meetings.
8. Interest Rate Flexibility
Can offer competitive interest rates on deposits and loans within prescribed limits, attracting more members.
9. Perpetual Succession
Company continues to exist regardless of member changes. Operations are not affected by individual member exits.
10. Brand Recognition
The "Nidhi Limited" suffix creates instant recognition as a regulated financial institution among potential members.
Benefits of Registering a Nidhi Company:
Why do community entrepreneurs choose the Nidhi Company structure? It's about creating a sustainable financial ecosystem for community benefit. Here are the compelling benefits:
No RBI License Required
Unlike traditional NBFCs, Nidhi Companies don't require RBI registration or license, significantly reducing regulatory complexity and costs.
Community Trust Building
The mutual benefit model builds deep trust within the community. Members know their deposits are used to help fellow members.
Lower Compliance Burden
Simpler compliance requirements compared to banks and NBFCs. Focus on MCA compliance rather than complex RBI regulations.
Affordable Financial Services
Provide loans at reasonable rates to members who might not qualify for traditional bank loans. Financial inclusion at its best.
Flexible Membership
Easy to add new members and grow the community. Membership fees are affordable, encouraging wider participation.
Sustainable Business Model
Interest spread between deposits and loans creates sustainable revenue. No need for complex product offerings or marketing.
Join thousands of successful Nidhi Companies operating across India with IncorpX!
Difference Between Nidhi Company and Other Financial Structures:
Understanding how a Nidhi Company differs from other financial entities helps you make the right choice. While Nidhi Companies offer simplicity and community focus, structures like NBFCs, Cooperative Banks, or Chit Funds serve different purposes. Below is a detailed comparison.
Key Feature
Nidhi Company
NBFC
Cooperative Bank
Chit Fund Company
Private Ltd Company
Applicable Law
Companies Act, 2013 & Nidhi Rules, 2014
RBI Act, 1934 & Companies Act
Banking Regulation Act & Cooperative Acts
Chit Funds Act, 1982
Companies Act, 2013
Regulator
Ministry of Corporate Affairs (MCA)
Reserve Bank of India (RBI)
RBI & State Cooperative Registrar
State Registrar of Chits
MCA
RBI License Required
No (Exempt from RBI provisions)
Yes (Mandatory)
Yes (Mandatory)
No
No
Deposits From
Members only
Public allowed
Members and public
Subscribers only
Not allowed
Loans To
Members only
Public allowed
Members and public
Subscribers via auction
Not primary business
Minimum Capital
₹5 Lakhs paid-up
₹2 Crores (varies)
As per state rules
As per state rules
No minimum
Minimum Members
200 members (within 1 year)
No minimum members
Minimum 25
Minimum 2 subscribers
Minimum 2
Company Type
Public Limited Company
Private/Public Limited
Cooperative Society
Any registered entity
Private Limited
Compliance Level
Moderate (MCA focused)
High (RBI + MCA)
High (RBI + State)
Moderate (State focused)
Moderate
Best For
Community savings & lending
Commercial lending business
Regional banking services
Group savings schemes
General business
Geographic Scope
Typically local/regional
Pan-India operations
State-specific
State-specific
Pan-India
Examples
Community Nidhi Companies
Bajaj Finance, HDFC Ltd
District Cooperative Banks
Shriram Chits
Any Pvt Ltd Company
Pros and Cons of Registering a Nidhi Company:
Explore the comprehensive pros and cons of forming a Nidhi Company in India. This table provides an in-depth comparison of essential factors such as regulatory requirements, operational scope, member requirements, and compliance obligations to help you make an informed decision.
Aspect
Advantages
Disadvantages
Regulatory Framework
Exempt from RBI's core NBFC provisions. No license required from RBI, reducing initial setup complexity and ongoing regulatory burden.
Must comply with Nidhi Rules, 2014, which have specific requirements for Net Owned Funds, member count, and deposit ratios.
Capital Requirements
Lower initial capital requirement of ₹5 lakhs paid-up capital compared to ₹2 crores for NBFCs.
Must achieve Net Owned Funds of ₹20 lakhs within one year of incorporation and maintain NOF to deposit ratio.
Business Operations
Simple business model focused on deposits and loans. No complex product development or marketing required.
Limited to members only. Cannot accept deposits from or provide loans to non-members, restricting growth potential.
Member Requirements
Starts with just 7 subscribers at incorporation. Easier to form compared to cooperative societies.
Must achieve 200 members within one year of incorporation. Failure can lead to regulatory issues.
Trust & Credibility
High trust among members due to mutual benefit model. "Nidhi Limited" suffix creates instant recognition.
Limited brand recognition outside the local community. May struggle to attract members beyond immediate network.
Interest Rates
Flexibility in setting interest rates within prescribed limits. Can offer competitive rates to attract members.
Maximum interest rate on deposits and minimum on loans are prescribed, limiting flexibility in certain cases.
Operational Flexibility
Can open branches within the district without RBI approval. Easier expansion within local area.
Opening branches outside the district requires meeting additional criteria and approvals.
Compliance
Simpler compliance compared to NBFCs and banks. Primarily MCA-focused annual filings.
Half-yearly returns (NDH-1, NDH-2), annual compliance, and specific Nidhi Rules compliance are mandatory.
Loan Security
Can secure loans against gold, fixed deposits, and immovable property. Multiple collateral options.
Unsecured loans are limited and restricted. Cannot provide loans for speculative purposes.
Growth Potential
Sustainable community-based growth. Members bring more members through word-of-mouth.
Growth is geographically limited and dependent on local community size and trust.
Minimum Requirements for Nidhi Company Registration:
Minimum 7 shareholders/subscribers required at incorporation
Minimum 3 directors must be appointed (at least 1 resident)
Must be incorporated as a Public Limited Company
Minimum paid-up equity share capital of ₹5 Lakhs
Company name must end with "Nidhi Limited"
200 members required within 1 year of incorporation
Net Owned Funds of ₹20 Lakhs within 1 year
NOF to deposit ratio of 1:20 must be maintained
What Are the Documents Required for Nidhi Company Registration?
To ensure a smooth and successful Nidhi Company registration, all directors and shareholders must provide proper documentation. The Ministry of Corporate Affairs (MCA) requires identity and address proof along with proof of the registered office address. Here is the complete checklist:
Category
Document Type
Specific Examples
Purpose
For Directors/Shareholders (Indian)
Identity Proof
PAN Card (Mandatory), Aadhaar Card, Passport, Voter ID, Driving License
Establishes identity as per Companies Act, 2013
Address Proof
Recent Utility Bills or Bank Statements (not older than 2 months)
Verifies residential address of directors/shareholders
For Company Registration
Registered Office Proof
Utility Bill or Property Tax Receipt (not older than 30 days)
Verifies the registered office address
Rent Agreement / NOC
Rental agreement or No Objection Certificate from property owner
Grants permission to use premises as registered office
Memorandum of Association (MOA)
Document defining Nidhi objectives and scope
Must include Nidhi-specific objectives as per Nidhi Rules
Articles of Association (AOA)
Governing document with Nidhi-specific provisions
Includes membership, deposit, and loan provisions
For Digital Filing
Digital Signature Certificate (DSC)
Class-3 DSC for each proposed director
Required for signing electronic forms with MCA
Director Identification Number (DIN)
DIN for all proposed directors
Mandatory unique ID for company directors
Additional Requirements
Passport-Size Photographs
Recent photos of all directors and shareholders
Used for incorporation formalities
Declaration & Consent Forms
Form INC-9 and DIR-2
Director declarations and consent to act
Step-by-Step Process for Nidhi Company Registration
Registering a Nidhi Company involves specific steps unique to this structure. At IncorpX, we handle the entire process, ensuring compliance with both Companies Act and Nidhi Rules. Here is the roadmap:
Step 1: Digital Signature Certificate (DSC)
Obtain DSCs for all proposed directors. The DSC is essential for signing the incorporation forms digitally. We help you get Class-3 DSCs from authorized certifying agencies.
Step 2: Director Identification Number (DIN)
Every director needs a unique DIN. We apply for DIN for all directors (minimum 3 required) through the SPICe+ incorporation form.
Step 3: Name Approval (RUN Service)
Choose a unique name ending with "Nidhi Limited". The name should not be similar to existing companies. We check availability and apply for name reservation.
Step 4: Filing SPICe+ Form
File the SPICe+ (Part A & B) form with MCA along with MOA and AOA containing Nidhi-specific provisions. This form also applies for PAN, TAN, and other registrations.
Step 5: Certificate of Incorporation (CoI)
Upon approval by the Registrar of Companies (RoC), the Certificate of Incorporation is issued with the company recognized as a Nidhi Company.
Step 6: NDH-4 Declaration
File Form NDH-4 within 90 days of incorporation declaring that the company will comply with Nidhi Rules. This is mandatory for all new Nidhi Companies.
Step 7: Achieve Nidhi Status Requirements
Within one year, achieve 200 members, ₹20 lakhs Net Owned Funds, and 1:20 NOF to deposit ratio. File Form NDH-1 and NDH-2 as per timelines.
Get your Nidhi Company registered in just 7-10 days with IncorpX!
Mandatory Compliance Checklist for Nidhi Companies in India:
Registering your Nidhi Company is just the beginning. To maintain legal status and avoid penalties, strict compliance with Nidhi Rules and Companies Act is essential. Here's a comprehensive table of all compliance requirements:
Aspect
Compliance Requirement
Frequency
Why It's Important
NDH-1 (Half-Yearly Return)
File Form NDH-1 containing membership details, deposits, and loan information.
Half-yearly (April-Sept & Oct-March)
Ensures Nidhi-specific compliance and reporting to MCA.
NDH-2 (Extension Application)
Apply for extension if unable to meet Nidhi requirements within one year.
As needed (before deadline)
Prevents automatic non-compliance and legal issues.
NDH-3 (Half-Yearly Return)
Continuation of half-yearly returns with detailed financial information.
Half-yearly
Maintains transparency with regulatory authorities.
Annual Return Filing
File Form MGT-7 with shareholder and director details.
Annually (within 60 days of AGM)
Standard company compliance with MCA.
Financial Statements
Submit Form AOC-4 including balance sheet and P&L account.
Annually (within 30 days of AGM)
Discloses financial position to members and regulators.
Board Meetings
Hold minimum 4 board meetings per financial year.
Quarterly (max 120-day gap)
Supports good corporate governance.
Annual General Meeting
Conduct AGM to approve accounts and elect directors.
Annually (by September 30th)
Member participation in governance decisions.
Director KYC
Submit Form DIR-3 KYC for all directors.
Annually
Keeps director information updated with MCA.
Statutory Audit
Annual audit by a Chartered Accountant.
Annually
Ensures financial accuracy and legal compliance.
Income Tax Filing
File Form ITR-6 declaring income and taxes.
Annually
Mandatory tax compliance for companies.
Maintain Statutory Registers
Maintain registers of members, deposits, loans, directors, and minutes.
Ongoing
Required for inspections and compliance verification.
Why Choose IncorpX for Nidhi Company Registration?
100% Online Process: Complete registration from anywhere in India.
Transparent Pricing: No hidden charges. Starting at just ₹999.
Fast Incorporation: Get your Nidhi Company registered in as fast as 7 days.
Expert Support: Dedicated CA/CS support with Nidhi expertise.
End-to-End Service: From incorporation to NDH-4 filing and ongoing compliance.
Post-Registration Guidance: Help with achieving 200 members and NOF requirements.
FAQs on Nidhi Company Registration
Starting a Nidhi Company is an excellent way to promote savings and provide financial services within a community. With the right guidance, the registration process can be straightforward. We've compiled answers to the most frequently asked questions to help you understand the process and requirements.
These FAQs cover everything from initial requirements to ongoing compliance, helping you make informed decisions about your Nidhi Company venture.
The minimum paid-up equity share capital required is ₹5 lakhs at the time of incorporation. Within one year, the company must achieve Net Owned Funds (NOF) of at least ₹20 lakhs.
A minimum of 7 members (shareholders) are required at the time of incorporation. Within one year of incorporation, the company must have at least 200 members.
No, Nidhi Companies are exempt from RBI's core provisions for NBFCs. They are regulated by the Ministry of Corporate Affairs (MCA) under Nidhi Rules, 2014, and do not require RBI registration or license.
No, a Nidhi Company can only accept deposits from its members. Similarly, it can only provide loans to its members. This is the fundamental principle of the mutual benefit model.
A Nidhi Company cannot accept deposits exceeding 10% of its total deposits from a single member. This ensures diversification and reduces concentration risk.
Nidhi Companies can provide loans secured against:
Gold, silver, and jewellery
Fixed deposits with the Nidhi
Immovable property (with restrictions)
Government securities and LIC policies
The maximum loan to a single member is 15% of the total deposits or ₹15 lakhs, whichever is lower. For loans against property, additional limits apply.
Form NDH-4 is a declaration that the company intends to comply with Nidhi Rules, 2014. It must be filed within 90 days of incorporation. This is mandatory for all new Nidhi Companies.
Nidhi Companies must maintain a Net Owned Funds (NOF) to deposits ratio of 1:20. This means for every ₹1 of NOF, the company can accept deposits up to ₹20 from members.
Yes, a Nidhi Company can open branches within the same district without prior approval if it meets certain criteria. Opening branches in other districts requires meeting additional requirements including three profitable years and no defaults.
If the company cannot meet the 200 member requirement within one year, it can apply for extension via Form NDH-2. Failure to achieve requirements or obtain extension can result in removal of Nidhi status.
Nidhi Companies can advertise, but they cannot issue public advertisements inviting deposits from the general public. Advertisements should be targeted towards potential members only.
As per Nidhi Rules:
Maximum interest on deposits: Not exceeding maximum rate prescribed by RBI for NBFCs
Maximum interest on loans: Not exceeding 7.5% above the highest rate offered on deposits
A Nidhi Company cannot be converted to any other form of company. Similarly, no other company can be converted into a Nidhi Company. It must be incorporated as a Nidhi from the beginning.
Nidhi Companies cannot:
Issue preference shares or debentures
Open current accounts for members
Accept deposits from non-members
Provide loans to non-members
Enter into any partnership in its business
Engage in chit fund or hire purchase business
Most financial services provided by Nidhi Companies are exempt from GST. However, if the company provides any taxable services or goods, GST registration may be required based on turnover thresholds.
Any individual can become a member by subscribing to the shares of the Nidhi Company. Minor members cannot be enrolled. Body corporates and firms generally cannot become members.
With all documents in order, a Nidhi Company can be registered in 7-14 working days. This includes name approval, incorporation, and obtaining the Certificate of Incorporation.
The minimum tenure for fixed deposits in a Nidhi Company is 6 months and maximum is 60 months. Premature withdrawal is subject to conditions specified by the company.
IncorpX provides complete support including:
DSC and DIN procurement
Name approval and incorporation
Drafting Nidhi-specific MOA and AOA
NDH-4 declaration filing
Guidance on achieving 200 members and NOF requirements
