Nidhi Company

A Nidhi company is a type of non-banking financial company (NBFC) that is prevalent in India. The primary objective of a Nidhi company is to cultivate the habit of thrift and savings among its members, and to lend money to its members for productive purposes.The word “Nidhi” means “treasure” or “fund” and these companies are essentially mutual benefit societies that facilitate savings and lending among its members. Nidhi companies are regulated by the Ministry of Corporate Affairs and governed by the Companies Act, 2013.
0 +
Businesses Served
0 +
Years Experience
0 /5
Google Rating

Get Started

Mayank Wadhera

Expert in Nidhi Company

Best Compliance Firm For Your Company

Free Legal Advice

Experts Team

On-Time Delivery

Overview of Nidhi Company

Nidhi Company is a company that is incorporated to develop the habit of saving among its members only for their mutual benefits. The company is allowed to take deposits from & lend money to the members only. Hence, only the members take part in contributing funds & lending activities of a Nidhi Company. The minimum number of members required for registration is 3. The last word in the name must be ‘Nidhi Limited’. It shall be a public company.

  • It is considered an NBFC. RBI issues directions to the Nidhi Company concerning its activities.
  • It is generally advisable where the activity of deposit & lending relates to a specific group of people.
  • The RBI has exempted Nidhi Companies from the applicability of the RBI Act. It is very easy & cheap to incorporate a Nidhi Company.
  • The funds raised by Nidhi companies are used for lending to its members, with a focus on promoting small-scale industries, home ownership, and other productive activities.
  • The interest rates charged by Nidhi companies are typically lower than those charged by traditional financial institutions, making it an attractive option for small borrowers.
  • However, Nidhi companies are not allowed to engage in any other form of business apart from the lending and borrowing activities.

Advantages of Nidhi Company

Separate Legal Entity A Nidhi company is considered as a separate legal entity for the purpose of law. Accordingly, it can hold property in its name, sue & be sued, borrow in its name, etc.
Limited Liability The members are considered separate from the company. So, they are not liable for the creditors of the company.
No claim on Property of Company Since, it is considered as a juristic person, no member can claim any rights over the property of a Nidhi Company as long as it is going concern.
Perpetual Succession The existence of Nidhi Company does gets affected due to the departure or death of any member.
Credibility A Nidhi Company enjoys better credibility as it is registered and managed by the central government in contrary to mutual benefit organizations that are registered & monitored by state governments.

Registration Process

Step 1: Obtaining DSC and DIN: Digital Signature Certificate(DSC) and Director Identification Number(DIN) is required for the proposed Directors of the Private Limited Company which is necessary to file the company registration documents. For this, you will only need to provide a few scanned documents and details; our representatives will fill out the form and submit it online. DIN and DSC can be obtained for the proposed Directors within 1 to 2 days.

Step 2: Name Approval: A minimum of one and a maximum of six proposed names must be submitted to the MCA. Subject to availability, naming guidelines and MCA processing time, Name Approval can be obtained in 2 to 3 working days.

Step 3: Drafting MOA and AOA Electronically: It takes 2 to 3 days to draft MOA and AOA Electronically in Spice MOA (INC-33) and Spice AOA (INC-34).

Step 4: Company Registration: After drafting the e-MOA and e-AOA, the incorporation Spice Form INC-32 is submitted along with a link form Spice MOA (INC-33) and Spice AOA (INC-34) to the MCA. MCA will usually approve the application for incorporation in 5 to 7 days, subject to their processing time. Please note that forms 49A and 49B have to be mandatorily applied with SPICe. If the same is not filed within 2 days of submitting SPICe (INC-32), the application for incorporation will be marked as ‘Invalid’.

Required Documents

1. Copy of PAN Card of directors

2. Passport size photograph of directors

3. Copy of Aadhaar Card/ Voter identity card

4. Copy of Rent agreement (If rented property)

5. Electricity/ Water bill (Business Place)

6. Copy of Property papers (If owned property)

7. Landlord NOC (Format will be provided)

FAQ's Nidhi Company :-

A Nidhi company is registered as a Public Limited Company. Hence, the requirements for incorporation of a Nidhi company covered a minimum of three Directors and Seven Shareholders. The MOA of a Nidhi company must state that the primary objective of the proposed company is to nurture and promote a habit of thriftiness and savings among its members, and accept deposits from or lend loans only to its members, for the mutual benefits of them.
Yes, because the Central Government/MCA/RBI has framed the laws/rules to ensure the security and safety of deposits.
Yes, SPICe Forms can be used for incorporating a Nidhi Company.
After incorporation, within one year it must satisfy the following: • At least 200 members. • Minimum Net Owned funds of Rs. 10 Lakh. • Unencumbered term deposits must be at least 10% of the Outstanding deposits. • The ratio of NOF to the deposits, should not be greater than 1:20.
It typically takes 35 to 45 working days to register a Nidhi Company.
Yes, the company registration process is online. You can send the required documents via email to
It is valid until it is active & does not get struck off by registrar by being a dormant company.

Get Started

1. Application

Fill out the application form & other details.

2. Payment

Make the payment through online mode.

3. Process

We will process your application.

4. Confirmation

A mail will be send on completion.

Why People Choose Our Services ?

Free Legal Advice

We provide free of cost consultation and legal advice to our clients.

Tech Driven Platform

All our services are online no need you to travel from your place to get our services.

Grow your business

Experts Team

We are a team of more than 15+ professionals with 11 years of experience.

Transparent pricing

There are no hidden & extra charges* other than the quote/invoice we provide.

100 % Client Satisfaction

We aim that all our customers are fully satisfied with our services.

On-Time Delivery

We value your time and we promise all our services are delivered on time.

Why Trust legal Suvidha?

People Who loved our services and what they feel.

In this Journey of the past 10+ years, we had gained the trust of many startups, businesses, and professionals in India and stand with a 4.9/5 rating in google reviews.

Reno K Subramaniam
Reno K Subramaniam
I have recently registered a Private Limited firm and was looking for a CA to take care of the filings, Startup India Certificate, and other formalities. I have received emails from legal Suvidha and a few others. I tried talking to them all. But, Mr. Mayank from Legal Suvidha was very impressive and was patient enough, prompt to answer all the queries. He has a very professional team and after the initial formalities, I started interacting with the team. It's not even 2 weeks but I really feel overwhelmed by their service and professionalism. I received my startup India certificate yesterday and my filings have been done promptly. The team at legal suvidha Ms. Nidhi, Ms. Priyanka, Ms. Koshika, and Ms. Saloni all show the same professionalism and are readily available to take care of the official filings and stuff. Overall a great experience till now and looking forward to a great journey!
pankaj tiwari
pankaj tiwari
Legal suvidha is a team of genuine and experienced professionals who give you best services according to your profile
Raman Krishnan
Raman Krishnan
Saloni from legalsuvidha has done a excellent job for filling and geting certificate of DPIIT. Thanks to legalsuvidha.
Prakaash Hari
Prakaash Hari
Team Legal Suvidha offers a brilliant service. There communication is quite clear and they execute the job meticulously. We are a startup private limited company and their advice is so critical in making my decision. Well done team. Keep it up. Prakaash Hari, Director, ipixela.
Priyanka Rudra
Priyanka Rudra
Dedicated team and fast response
Dr. Vishal Ghag
Dr. Vishal Ghag
Been using their services since 3 years now and I am absolutely happy with Legal Suvidha. They have been supportive, understanding and highly skilled at helping me with my business needs.

Stay Updated With Our Blogs!

Explore more of our blogs to have better clarity and understanding
of the latest corporate & business updates.

Contact us and grow your business
Legal Suvidha App

Now all Professional Services in a Single Click !

Now get all the services required for your business in a single app.

Subscribe to our newsletter & grow your business

Subscribe To Our Newsletter .

Sign up to receive email updates on new product announcements, special promotions, sales & more.