Register a Nidhi Company
NBFC that enables you to lend money and accept deposits. Incorporate as a Nidhi company!


Nidhi company is a member-only organisation that allows to take deposits and lend money to its members only. Examples of a Nidhi Company are permanent funds, mutual benefit funds, a mutual benefit company and benefit funds. RBI has exempted the notified Nidhi companies from the core provisions of the RBI Act and other directions applicable to a NBFCs. Therefore, Nidhi Company is an ideal entity to obtain cash deposits from members or contribute to them, for the common gain of the two parties. registered under Section 406 of Companies Act, 2013. The main business of such a company is to facilitate lending money between the core members of the company. This way members (or shareholders) are encouraged to save money and invest them within the company. These deposits are then used by the company for its members (or shareholders), to provide loans or advances, and to acquire government-issued stocks/bonds/debentures/securities. It is regulated by the Ministry of Corporate Affairs, while the RBI monitors all its financial dealings. Register a Nidhi company for your lending-deposit business.

Documents Required

Documents of Partners:

  1. Passport size photographs
  2. Address proof (Aadhaar card/ Voter ID)
  3. Bank Account Statement
  4. PAN card

Address Proof (Office) :

  1. Latest utility bill (electricity/ water) 
  2. No Objection certificate from Property owner

Partnership Details

  1. Terms of the partnership
  2. Contribution of each partner
  3. Services Covered
  4. Filing of E-forms and applications
  5. Designated Partner Identification Number (DPIN) and Digital Signature Certificate (DSC): 2 nos
  6. Drafting the Deed, MoA and AoA of LLPI
  7. ssue of Incorporation Certificate
  8. PAN and TAN application
  9. Includes govt fees and stamp duty for capital contribution up to Rs 1 lacs.

Excludes Foreign National or Foreign Body corporates as partners or activities that need approval from RBI, SEBI or IRDA. For LLP with FDI, refer to Foreign Subsidiary in India.

Additional Requirements:

  1. At least seven members are mandatory to form a Nidhi company. Out of these, three should be designated as the directors. However, it should acquire a minimum of 200 members within one year of commencement.
  2. Moreover, the company should have a minimum equity share capital of Rs 5 lakhs, for registering as a Nidhi Company. This entire amount has to be paid up. However, the Net Owned Funds (NOF) must be increased to Rs 10 lakhs within a year of registration.
  3. At least 10% of its outstanding deposits should comprise of un-encumbered term deposits.
  4. The prescribed NOF to deposits ratio should be 1:20.
  5. This includes equity share capital and free reserves and excludes accumulated losses as well as intangible assets.
  6. At least 10% of its outstanding deposits should comprise of un-encumbered term deposits
  7. The prescribed NOF to deposits ratio should be 1:20. where 10% of the total deposits are in a fixed deposit account of a nationalised bank.

Services Covered

  1. Name Reservation – We help you reserve your name with MCA.
  2. DSC and DINs – We help you get 1 DSC and 3 DINs.
  3. Documents and approval – We help you at every stage of the documentation process and in getting in-principle approval from the RBI.
Why is Nidhi Company Beneficial?

Cheaper To Borrow: As a member, one can borrow money at a minimum rate, relative to the rate at which banks lend money. This can be a major advantage in times of need, as different individuals in the mutual benefit society are likely to need funds at different points in time.

Encourages Savings: It encourages all its members to save money and encourages a thrifty lifestyle. A Nidhi Company, after all, is a mutual benefit society wherein members can lend or borrow money and accept financial aid amongst them.

Fewer Complications:Borrowing and lending to known persons, where the procedure is fixed, is much less complicated than dealing with banks or in an informal setting. A Nidhi Company enables its members to unlock the potential of their money and gain from lower interest rates when they require money themselves.

Should I dissolve my Nidhi Company because it has not gained the necessary numbers of representatives in spite of completing one full year of tenure?

The conditions laid down by the Act says that a Nidhi Company should acquire a minimum of 200 members within its first year of incorporation. However, in case the company is not able to meet the required numbers, it can apply for an extension with the necessary government authorities.

In a Nidhi Company, are members allowed to credit or debit cash to the general fund?

No, members are only allowed to deposit, borrow, or lend funds.

What are the criteria to become a representative of a Nidhi Company?

Any person can deposit, lend or borrow money through the provisions provided by the Companies Act, 2013. Hence, they can all become members of a Nidhi Company. provided they are not a corporation or a company.

In a Nidhi Company, what should the limit for cash deposit be, for its representatives?

A Nidhi Company can accept deposits not exceeding 20 times of its net owned assets, as per the last audited statements.

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