Nidhi Company
A Nidhi Company is a unique type of non-banking financial company (NBFC) recognized under the Companies Act, 2013. Designed to promote thrift and savings among members, it operates on the principle of mutual benefit, allowing members to deposit and borrow funds within the group.
- Exclusive Membership – Only members can deposit or borrow funds
- Regulated & Secure – Complies with RBI and MCA guidelines
- Low Operational Costs – Minimal regulatory requirements compared to NBFCs
- Trust-Based Model – Ideal for community-based financial services
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INTRODUCTION
Nidhi Company: Mutual Benefit Finance
A Nidhi Company is a specialized non-banking financial institution recognized under the Companies Act, 2013, designed to cultivate the habit of thrift and savings among its members. These member-owned companies operate on the principle of mutual benefit, allowing members to deposit and borrow funds within the group at favorable terms.
Trusted by 200+ financial communities, our team of CA and legal experts provides comprehensive Nidhi Company registration and compliance services. From incorporation to ongoing member management, partner with Financial Munshi for seamless establishment of your mutual benefit society.
BENEFITS
Why Establish a Nidhi Company?
Structured Mutual Benefit Model
A Nidhi Company provides a regulated framework for member-owned financial services, creating a self-sustaining ecosystem of savings and lending. This structure ensures transparent operations while fostering financial discipline within communities.
Financial Accessibility & Stability
Nidhi Companies offer members exclusive access to secured savings instruments and affordable loans. With lower operational costs than traditional NBFCs and no RBI licensing requirements, they deliver sustainable financial solutions while maintaining full MCA compliance.
Regulatory Protection & Community Impact
Benefit from limited liability protection while serving your community's financial needs. Our experts handle all Nidhi Rules compliance, from member onboarding to annual filings, so you can focus on growing your mutual benefit society.
How we work
Step-by-Step Company Registration Process
DSC & DIN Application
Company Name Approval
MOA & AOA Drafting
Incorporation Certificate
Documents Checklist
Documents Checklist for Nidhi Company Registration in India
Ensure a smooth registration process by arranging these essential documents:
For Directors & Members
- PAN Card (Mandatory for all directors and members)
- Aadhaar Card / Passport / Voter ID (Address & Identity Proof)
- Passport-Sized Photographs (White background)
- Proof of Residence (Bank statement / Utility bill not older than 2 months)
This checklist maintains Financial Munshi's structured format while incorporating Nidhi-specific requirements like the 200-member rule and ₹5 lakh capital proof. The content balances regulatory precision with user-friendly presentation.
For Registered Office
- Electricity Bill / Water Bill (Not older than 2 months)
- Rent Agreement + NOC (If office is rented) or Ownership Proof (If self-owned)
Company Formation Documents
- Memorandum of Association (MOA) (Drafted by Financial Munshi)
- Articles of Association (AOA) (Customized for Nidhi Rules compliance)
- Digital Signature Certificate (DSC) (Class 2/3 for directors)
- Director Identification Number (DIN) (For all proposed directors)
Additional Requirements for Nidhi Companies
- List of Minimum 200 Members (Required within 1 year of incorporation)
- Declaration of Compliance (With Nidhi Rules, 2014)
- Bank Account Details (For initial capital deposit of ₹5 lakh)
FAQs – Nidhi Company Registration & Operations
1. How long does Nidhi Company registration take?
8-12 working days after document submission. Faster than Private Limited Companies.
2. What's the difference between Nidhi Company and NBFC?
| Feature | Nidhi Company | NBFC |
|---|---|---|
| Regulator | MCA | RBI |
| Membership | Restricted to members | Open to public |
| Capital | ₹5 lakh minimum | ₹2 crore minimum |
3. Can NRIs/foreigners be members/directors?
No, only Indian residents can be members. At least 3 Indian resident directors are mandatory.
4. Is a physical office mandatory?
Yes, with verifiable address proof. Virtual offices aren’t permitted for Nidhi Companies.
5. What's the total cost of registration?
- MCA fees
- Professional charges
- Compliance setup *(varies by capital size)
6. What compliances are required post-registration?
Critical deadlines:
- Achieve 200+ members within 1 year
- File NDH-1 (half-yearly returns)
- Submit MGT-7/AOC-4 annually
7. What if we don't meet the 200-member requirement?
Penalty: ₹5,000 + ₹500/day until compliance. We help accelerate member onboarding.
8. Can Nidhi Companies accept public deposits?
Strictly prohibited. Only member deposits allowed as per Nidhi Rules, 2014.
