Nidhi Company

Nidhi Company is the efficient and cost way to begin a loan business in India. Nidhi Company is a financing company that accepts deposits from members and then gives the money back. Nidhi Company earns money mostly from interest on loans, and its primary expense is paying interest on deposits (FD, RD, and savings).

The funds given to a Nidhi company originate only from its members (shareholders) and are only used by the Nidhi Company's shareholders. Nidhi Company Registration is the only way to launch a loan company in India without getting approval from the RBI.

What steps are involved in starting a Nidhi Company?

Step 1.

Get the DSC and DIN for the Private Limited Company's proposed first Directors is the first step.

Step 2.

An application for a name reservation can be filed with the Registrar of Companies (ROC).

Step 3.

After receiving the ROC's approval, file the Private Limited company's incorporation application in the prescribed format.

Step 4.

4. If the registrar is pleased with the Private Limited company's application for incorporation, the Certificate of Incorporation is issued.

Requirements of NIDHI Company

1. A minimum of three directors is required.

2. There must be a minimum of seven people/shareholders.

3. All Directors must have a DIN (Director Identification Number) with a minimum Authorized share capital of Rs.500,000.

4. All Directors must have a DSC (Digital Signature Certificate).

Documents Required for Directors

  • Photograph of all the Directors and Members
  • PAN Card of all the Directors and Members.
  • All Directors and Members must show proof of identification (driver's license, passport, or voter ID).
  • For proof of the Registered Office's address, use an electricity bill or any other utility bill.

Documents for Registered Office Address

If Property Owned by Directors /Shareholder

  • Sale Deed of Property
  • NOC from the Owner (format given by our company)

If Rented Property

  • Rent Agreement
  • NOC from the Owner (format given by our company)

Anyone Document Required from Below

  • Electricity Bill / Telephone Bill / Mobile Bill


Legal Entity in Its Own Right

From the law's viewpoint, a Nidhi Company benefits from a Separate Legal Identity, which establishes that the company's assets and liabilities are not the Directors' assets and liabilities.

Cultivates a Savings

A Nidhi Co. motivates its members to save money and encourages a simple way of life. It is an organization that lends and borrows money from and takes financial loans from each other.


Nidhi Company shares can be transferred if you have an interest in the company. This is done by submitting forms to the ROC.

Cheap Borrowings

Members can borrow money from the company at bank rates when they need it. This can be really useful in a financial crisis, and the rates are low as compared to other financing company.

Mutual Advantages

A Nidhi Company is based on a mutual trust benefit idea. There is no profit to any single member or group of members. Each member of the Nidhi Company has the option to use the credit facility when they want.

Enhances credibility

In a public database, all of the company's information is made available. This tool makes it simple to verify a company's existence, which helps to improve the company's legitimacy.

Requirements of NIDHI Company

A minimum of three directors is required.

There must be a minimum of seven people/shareholders.

All Directors must have a DIN (Director Identification Number) with a minimum Authorized share capital of Rs.500,000.

All Directors must have a DSC (Digital Signature Certificate).

What You Will Receive From Us

Incorporation Certificate.


Company PAN Card.

Company TAN/TDS Number.

PF & ESIC Registration.

Master File of Incorporation.

DIN Number of Directors.

DSC of Directors.

With a qualified and experienced team of experts at TaxDraw, you'll have an advantage over the competition. And you'll obtain top-rated professional services that guarantee complete customer satisfaction. We help you with every stage of the Nidhi company registration process to focus on your business.

• We may register a company anywhere in India.

• Experts are on hand. 24×7.

• Fees are set and affordable.

• There are no extra charges, so there are no last-minute shocks.

• Senior & experienced CAs & CS.

• India's Most Popular Online Company Formation Portal.


Rs. 9999 All inclusive price


  • 7 DSC (2 Years Validity)
  • 3 DIN
  • Company Name Approval
  • MCA Filing Fee
  • PAN & TAN Number
  • PF & ESI Registration
  • Expert Support
Rs. 11999 All inclusive price


  • 2 DSC (2 Years Validity)
  • 3 DIN
  • Company Name Approval
  • MCA Filing Fee
  • PAN & TAN Number
  • PF & ESI Registration
  • GST Registration
  • Expert Support


A Nidhi Company accepts deposits and then lends them out on demand. Nidhi Companies are similar to NBFC. However, the main difference is that Nidhi Companies only accept deposits from their members. These organizations' principal goal is to work for the mutual benefit of their members. These businesses are not permitted to engage in hire purchase financing, insurance, chit funds, securities acquisition, or the issuance of any debt instruments.

Nidhi can only grant loans to its members once they have given/provided some form of security against the loan, such as gold, silver jewellery, or any other type of financial security.

Yes, deposits with such organizations are safe and secure since the Reserve Bank of India and the Ministry of Corporate Affairs have enacted rules and regulations to assure deposit safety and security. The Nidhi Company is also required to follow the rules of the Central Government.

A Nidhi Company director can serve for a maximum of ten years in the same position. He is, however, only eligible for reappointment when a two-year period has passed after the end of his term.

Nidhi was founded to instil the habit of saving and thrift in its members by accepting deposits and lending to them. Nidhi's primary goal is to continue its operation of receiving deposits and lending money to members.

What are the Nidhi Company's post-incorporation requirements?

Following incorporation, the Nidhi Company must meet the following requirements:

1 Net Owned Fund should be at least Rs. 10 lakhs.

2. The unencumbered term deposit must account for at least 10% of the total term deposit.

3. The Net Owned Fund to Term Deposit Ratio should not fall below 1:20.

No, a minor is not permitted to serve as a director of a Nidhi Corporation. A person must be at least 18 years old to become a Director of a Nidhi Company.