Company Registration
Nidhi Company
Limited Liability
Mutual Benefit
Transparency
Secured
Regulated
Eligibility
- • 3 directors
- • 7 members
- • ₹5 lakh minimum paid-up equity share capital
Popular
Basic Package
₹14,999 one-time professional fees*
- 3 DIN + 8 DSC
- MOA + AOA
- PAN + TAN
- GST Registration
- 1 RUN Name Approval
- Bank account opening documentation support
- Commencement of Business Certificate
- Certificate of Incorporation
A Nidhi Company is a mutual welfare society incorporated chiefly to promote the habit of thrift and savings among its members. Its core concept is borrowing and lending money between members themselves — receiving deposits from and lending to strictly its own members, for their mutual benefit. It also goes by names like Permanent Fund, Benefit Fund, and Mutual Benefit Company. Loans are advanced at comparatively reasonable rates, generally secured against collateral, and the rigid membership structure makes it a secured means of investment.
The Ministry of Corporate Affairs regulates Nidhi Companies, and they must comply with RBI directives on deposit acceptance. A minimum of three directors and seven members is required at formation; membership must reach 200 within the first year, alongside a minimum net owned fund of ₹10,00,000. Anyone wishing to be a director must hold ₹20,000 worth of shares in the company.
Conversion
A Nidhi Company can be converted into a Non-Banking Financial Company (NBFC) or Producer Company — in fact, it's the cheapest way to start an NBFC.
Registration Process
- 1
Apply for Name
The first step is applying for a unique name for the Nidhi Company.
- 2
Obtain DSC
All proposed directors need a Digital Signature Certificate (DSC) from a government-recognised certifying agency; the DIN is created automatically once DSC is obtained.
- 3
File MoA and AoA
Once the name is approved and DSC obtained, the MoA and AoA are prepared and filed along with other required documents.
- 4
Certificate of Incorporation
After verification, the Registrar of Companies issues the Certificate of Incorporation.
Documents Required
- PAN Card (mandatory for Indian residents)
- ID proof — Passport, Driving License, or Voter ID
- Address proof — recent utility bill or bank statement (not older than two months)
- No Objection Letter or lease/rent agreement for premises, if not company-owned
- Registered title document, if premises are company-owned
- Passport-size photographs of directors and shareholders
Frequently Asked Questions
What are the director/member requirements for a Nidhi Company?
A minimum of 3 directors and 7 members at formation.
Can a minor be a member?
No — minors, trusts, and body corporates cannot be members of a Nidhi Company.
Can a Nidhi Company issue Preference Shares?
No, it cannot.
Can a Nidhi Company open branches?
Yes, but not if it has not earned profit after tax for three consecutive financial years.
What interest rate can a Nidhi Company charge on loans?
It cannot exceed 7.5% above the highest interest rate offered on deposits.
Does a Nidhi Company have perpetual existence?
Yes — the death or departure of any member does not affect it; it continues until legally dissolved.
Can a Nidhi Company give unsecured loans?
No, it cannot issue unsecured loans.
Register Nidhi Company
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