Company Registration

Get Nidhi Company Registration


Nidhi Company is a form of non-banking financial institution (NBFI) that is registered under the Companies Act 2013. It is involved in the business of borrowing and lending money to its members and works on the principle of mutual benefits by inculcating the habit of savings among its members.

Nidhi Company can have member and director as the same person:

  • Registration of Nidhi company is an online process and it will be approved by the Ministry of corporate affairs in less than 20 working days.
  • Nidhi company works as a finance bank by fulfilling the necessary terms and conditions set by the regulatory authority.
  • As per the Nidhi rules, you can open only one branch in one district, after 3 years of profitable business you can open another branch in the same state.
  • Nidhi company gives only secured loans to its members and it accepts deposits in the form of saving deposits, recurring deposits, and fixed deposits.

Regulations of Nidhi Company

  • Nidhi company is required to maintain a 1:20 leverage ratio mandatorily.
  • Maximum interest on deposit can not be more than 12% and for savings accounts, it should be a maximum interest rate of 6% pa.
  • Nidhi capital is required to adopt a maximum of 20% as interest on a capital loan.
  • The affairs and administer of Nidhi company are primarily governed by the companies act 2013.

Operations principles of Nidhi company

  • Nidhi company is allowed to operate one branch at the beginning of the year to the third year of its operations.
  • Only after successful completion of the third year, you can open another branch within the same state.
  • Nidhi company gives loans only against tangible security.
  • Nidhi company is required to maintain a minimum of 200 members within a year

Nidhi Company Registration Process

The process involved in the registration of Nidhi Company is completely online.

  1. Minimum 7 members and 3 directors will be required to start the incorporation process of Nidhi company. Once the company is registered, it is called as “Nidhi Company Limited”
  2. Apply for DIN & DSC
  3. After getting the DSC & DIN, you need to apply INC-1 to MCA for reservation of name.
  4. Once the name is approved, you need to prepare MOA & AOA
  5. Apply for incorporation
  6. Get the incorporation certificate
  7. At last, apply for PAN & TAN


  • You need to have a minimum number of 200 within a year of incorporation
  • The minimum amount of capital required within a year is 10lacs
  • A company shall not announce a dividend of more than 25%
  • The dividend amount shall be transferred to the general reserves
  • The ratio of NOF shall always be maintained at 1:20

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