July 21, 2016

Nidhi Company Registration

What is Nidhi Company?

  • A Nidhi Company or Mutual Benefit Society/Fund or any other name by which you may know it,is a company created for the mutual benefit of its members.This mutual benefit comes from group lending and borrowing.
  • Within these companies the members make deposits and these deposits are used to give secured loans to the members at a reasonable interest rate.The basic idea of a nidhi company is to save its members from the exploitation of money lenders who charge high interest rates.
  • By becoming members of Nidhi’s people develop habit of savings and self-reliance .
Background or history
  • Long before the financial institutions were regulated and proper financial framework was established ,idea of group lending and borrowing existed but not by the same name or in the same way as it exist today as Nidhi Company.
  • In Hindi, Nidhi refers to finance, treasure or fund. Nidhi’s used to grant secured loans against tangible assets for personal purposes like family functions, marriages, medical issues, education, property purchase, etc.

Why Nidhi Company should be registered?

A registered Mutual Benefit Society has various advantages. Such as:-

  • Limited Liability: The members have limited liability which is extended up to the amount they have contributed or invested in the company. They are liable only for their share in the company. Personal Assets are beyond the reach of liability. They cannot be utilized for meeting the liability of the company.

  • Availability of funds : Funds contributed by members is available for the members themselves at lower interest rates.

  • Legal Existence : A registered Mutual Benefit Society enjoys separate legal existence. The members and the company are different. The company can buy, sale, or acquire assets in its own name, it can also incur debt in its own name, also it can sue or be sued in its own name.

How to register/incorporate a Nidhi Company?

  1. Incorporate a Public Ltd. Company with minimum paid up equity share capital of Rs. 5,00,000 with the sole object of lending and borrowing within the members.
  2. Company must be incorporated with ‘Nidhi Ltd.’ as last words in their name.
  3. Company should ensure that it has minimum 200 members,Rs. 10,00,000 or more of  Net Owned Funds, maximum ratio of N.O.F to Deposit 1:20,debt free term deposits of not less than 10% of the outstanding deposits, etc. Company is then required to file after the close of the first financial year NDH-1 or NDH-2 within 90 days or 30 days with ROC or RD respectively.
MCA on 31st March 2014 notified about Nidhi Rules under which Nidhi Companies are regulated. These rules deals with Share capital and allotment, Membership, Net owned funds, Branches, Rules relating to Directors, Auditor, Loans, Un-encumbered term deposits of Nidhi companies, Acceptance of deposits, Payment of dividend by this companies, etc.
Complete Nidhi Rules, 2014 can be found here.
List of Nidhi Companies is also provided.

Your Name (required)

Your Email (required)


Your Message

Requirements for Nidhi Company


Following are the steps to register a Nidhi Company:

First, you need to get Director Identification Number(DIN) and Digital Signature Certificate(DSC) of all the directors.

Next, get your Name Approval in the form of Public Limited Company with adding word Nidhi Limited in the last.

Then file COI i.e. Conflict of Interest, of Public Limited Company Registration in INC-7, INC-22, & DIR-12 with authorized share capital of rupees 10 Lakh.

File for Business Commencement.

At last submit details of minimum 200 members to Nidhi board under MCA/ROC.

Some provisions of Nidhi Company related to Branches

If Nidhi Company has earned net profits after tax continuously during the preceding three financial years, only then it may open branches.

A Nidhi is allowed to open up-to three branches within the district.

If a Nidhi wants to commence more than three branches within or outside the district, it shall obtain the prior permission of the Regional Director.

An intimation is to be given to the registrar about opening of every branch within 30 days of such opening.

Some provisions of Nidhi related to Loans.

These provisions must be complied by a Nidhi company registered in Delhi or at any other place.

(1) A Nidhi shall give loans to its members only.

(2) Following are the loan limits that a member can be given:

Total Deposit(`)

Loan Limit(`)

<2 Cr………………. 2,00,000

2-20 Cr………….7,50,000

20-50 Cr……..12,00,000

>50 Cr………..15,00,000

If a Nidhi has not made profits continuously in the three preceding financial years, it shall not make any fresh loans exceeding fifty per cent of the maximum amounts of loans specified.

And a member shall not be eligible for any further loan if he has borrowed any earlier loan from the Nidhi and has defaulted in repayment of such loan..

(3) A Nidhi shall give loans to its members only against the following securities, namely:—

(a) gold, silver and jewellery

(b) immovable property

(c) fixed deposit receipts, National Savings Certificates, other Government Securities and insurance policies

Name of your Company

Naming your company is the crucial part, a company name has two parts Prefix and a Suffix. Prefix must be unique and different, while Suffix should reflect the business nature of your company. To find your name availability, kindly check with Ministry of Corporate Affairs

Cost of Service

Professional Fee
Government Fees
10,000 /-
79,999 /-

Package Includes

Registration done within 15 to 20 days

Everything below is included:

  • Free DSC for 1 Director
  • DIN for 2 Directors
  • Name Reservation
  • MOA, AOA & All Incorporation Documents
  • Certificate of Incorporation
  • Company PAN & TAN [After Incorporation]
close slider