Nidhi Company Registration in India
Build a Community Finance Institution with Legal Recognition
Start member-based savings & lending operations by registering a Nidhi Company—a special category of Non-Banking Financial Company (NBFC) under Section 406 of the Companies Act, 2013. Designed to encourage savings and provide credit among members, a Nidhi Company offers a low-risk, community-focused financial structure exempt from RBI licensing. Ideal for small financiers, community groups, and wealth-building cooperatives.
Lawful Journey offers complete support for Nidhi Company incorporation, post-incorporation compliance, statutory filings, and business planning. With our legal and financial expertise, you can start your mutual benefit finance organization legally and scale it under MCA guidelines. Help communities grow financially while operating a legal, structured member finance business.
- Accept deposits and lend money to registered members legally
- No RBI license required—regulated by MCA under Nidhi Rules
- Promote thrift, savings, and credit within your own community
- Fully compliant structure with limited liability and statutory protection
Why Choose Nidhi Company Registration?
Nidhi Companies are uniquely positioned to serve the financial needs of middle- and lower-income communities without engaging in complex banking regulations. As an NBFC-like entity focused only on member transactions, it allows you to operate a savings and lending institution with low capital, limited compliance burden, and complete legal legitimacy under Indian law.
Promote Savings
Encourage regular savings habits among members through fixed deposits, recurring deposits, and voluntary savings schemes.
Member Lending
Legally provide secured or unsecured loans to members at affordable interest rates. No external borrower dealings allowed.
MCA Recognized
Registered as a Public Limited Company under the Companies Act, governed by Nidhi Rules, 2014. RBI exempted.
Limited Liability
Protects personal assets of members and directors. Business risk is confined to subscribed capital.
Simple Compliance
No complex RBI filings. Focused annual filings with Registrar of Companies and Nidhi compliance reports.
Community Finance Model
Designed for group-based microfinance, housing societies, and credit self-help groups looking for formal status.
Who Can Start a Nidhi Company?
Nidhi Companies are ideal for promoters seeking to create legal lending and savings platforms within specific communities. They are member-only financial institutions—allowing deposit-taking and loan activities with strict controls on membership, investment, and lending.
Eligibility Requirements
- Minimum 7 shareholders (with at least 3 directors) to incorporate
- Resident Indian promoters only—foreigners/NRI not permitted
- Capital Requirement: ₹10 lakh minimum paid-up capital
- ‘Nidhi Limited’ name is mandatory
- No preference shares allowed
Permitted Activities
- Accepting fixed, recurring, and savings deposits from members
- Lending to members against collateral or personal surety
- Operating branch offices after 3 years with profit record
- Issuing passbooks, receipts and statements to members
- Collecting monthly savings under fixed terms
Prohibited Activities
Nidhi Companies cannot deal with non-members, issue credit cards, open current accounts, undertake chit funds or microfinance. No advertising for deposit collection is allowed. Investments must remain within guidelines.
Post-Incorporation Requirements
- Minimum 200 members within 1 year of incorporation
- Net Owned Funds (NOF) of at least ₹10 lakh maintained
- Deposit to NOF ratio not exceeding 1:20
- Unencumbered term deposits of at least 10% of member deposits
- Annual filings with ROC in NDH-1, NDH-2, NDH-3 formats
Step-by-Step Nidhi Company Registration Process
Document Collection & Name Approval
Gather ID/address proof of promoters, define company objectives, and apply for name reservation via RUN form (must end in ‘Nidhi Limited’).
DIN & Digital Signature
Apply DIN (Director Identification Number) and DSC (Digital Signature Certificate) for proposed directors.
MOA/AOA Drafting
Prepare Memorandum and Articles of Association highlighting Nidhi objectives, deposit and lending terms, and member roles.
SPICe+ Company Incorporation
File incorporation forms with MCA, including PAN, TAN, address proof, director declarations, and MOA/AOA. Receive CIN.
Bank Account & Capital Deposit
Open a company bank account and deposit the subscribed capital as per declarations. Issue share certificates to members.
Member Mobilization & Deposit Setup
Enroll at least 200 members within 1 year, and begin operations including deposit acceptance and internal loan issuance.
NDH Compliance & Filings
File NDH-1 for membership & deposit compliance. NDH-2 for extension if needed. Maintain NDH-3 semi-annual returns and accounting standards.
Ongoing Compliance Management
Maintain statutory registers, financial statements, board meetings, and ROC filings. Lawful Journey supports you long-term.
Documents Required for Nidhi Company Registration
Promoter Documents
- PAN Card: Mandatory for all directors and shareholders
- Aadhar Card: Proof of identity and address
- Passport Size Photos: Recent photographs of all promoters
- Voter ID/Driving License: Secondary ID proof
Company Documents
- Registered Office Proof: Utility bill and NOC from owner or rental agreement
- Director Consent Forms (DIR-2): Consent to act as a director
- Declaration (INC-9): Self-declaration of non-disqualification
- MOA & AOA: Memorandum & Articles of Association with Nidhi clauses
Post-Incorporation
- Share Certificates: Issued to members as proof of contribution
- NDH-1, NDH-2, NDH-3 Filings: Filed to confirm compliance with Nidhi rules
- Board Resolutions: For opening bank accounts and appointment of auditor
Why Choose Lawful Journey?
End-to-End MCA Compliance
We handle incorporation, NDH filings, and all ROC submissions to keep your Nidhi Company legally compliant.
Quick Turnaround
Get incorporated in just 12–18 working days with our streamlined documentation and expert coordination with MCA.
RBI-Free Structure
Operate member loans and deposits legally without RBI licensing. We ensure you meet all Nidhi exemptions.
Advisory & Growth Support
We advise on interest policies, deposit schemes, and expansion strategies for sustainable growth.
Dedicated Consultant
Get one-on-one assistance for documentation, filing schedules, compliance alerts, and financial audits.
Legal Safeguards
Avoid penalties and director disqualification with our preventive compliance and regulatory audits.
Frequently Asked Questions
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No. Nidhi Companies are exempt from RBI licensing if they follow Nidhi Rules, 2014 and transact only with members.
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Only from registered members. No public advertisement or solicitation from the general public is permitted.
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The minimum paid-up capital required is ₹10 lakh, to be deposited after incorporation.
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Yes, after 3 years of continuous profitability, it can open up to 3 branches within the same district without prior approval.
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Yes, if such loans are offered to members only and are supported by internal loan policy.
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Yes, rates must be reasonable and non-usurious in line with RBI’s general guidelines for NBFCs.
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Yes, statutory audit and annual ROC filings are mandatory regardless of size or turnover.
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You must reach 200 members within one year of incorporation or seek an extension through NDH-2.
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Yes, dividends can be declared from net profit as per Companies Act and AOA rules.
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Absolutely. We provide annual compliance, ROC filings, board meeting documentation, and audit assistance as part of our managed services.
Start Your Business Journey Today
Get a free consultation with a Lawful Journey expert. We’ll help you choose the right structure, explain the process, and get your company incorporated—fast, legally, and stress-free.
Call: +91 99102 18035 Email Our Team