Register a Nidhi
Company @ Rs. 9,999 in
3 simple steps, you get
- DIN
- DSC
- Name of the company
- Company Document Proof
- Incorporation Certificate
- MOA & AOA
- Stamp Duty
- Company TAN/TDS
We're ready to help start your Nidhi Company today!
Introduction
A Nidhi Company is a type of non-banking financial company (NBFC) in India, regulated under Section 406 of the Companies Act, 2013. The primary objective of a Nidhi Company is to promote the habit of thrift and savings among its members. To form a Nidhi Company, a minimum of seven members is required, and the company must have a net owned fund of at least ₹10 lakhs. The registration process is relatively straightforward, and Nidhi Companies are incorporated as public companies, with “Nidhi Limited” included at the end of their names. Nidhi Companies can borrow from and lend to their members only. This unique structure fosters a sense of community and financial discipline, making Nidhi Companies an attractive option for small communities and groups seeking a platform for mutual financial support.
Bright Advis is committed to providing seamless and efficient services for the incorporation of Nidhi Companies. We prioritize transparency, compliance, and client satisfaction, aiming to deliver a hassle-free experience for clients venturing into the establishment of Nidhi Companies.
Documents Checklist
Bright Advis has compiled a detailed list of documents that are required to register a Nidhi Company. Speak to our experts for any queries.
Identity Proof
- Document Proof of Partners
- Notarized Documents (for Foreign Nationals)
- Utility Bill or Bank Statement
Address Proof
- Utility Bill or Bank Statement
Proof of Registered Office
- Ownership of Property- Any utility bill like an electricity bill or corporation tax receipt not later than 30 days.
- Right to use the Property - Rental Agreement or No Objection Certificate (NOC) from the owner.
Other Documents
- Passport Size Photographs
- Certificate of Incorporation
- Memorandum of Association
- Articles of Association
process
Registration Process
in 3 Simple Steps
At Bright Advis, we have simplified the entire registration process of a Nidhi Company into 3 simple steps. This makes your journey smooth, structured and easy.
- Pre-application
- We collect basic information
- Gather required documents
- Obtain Digital Signature Certificate
- Check availability of name
- Drafting & Application
- Obtain Directors Identification Number (DIN)
- Name Approval
- Draft Memorandum of Association
- Draft Articles of Association
- Approval
- Obtain Incorporation Certificate
Following the successful verification of documents, Bright Advis ensures a seamless process for the issuance of Certificate of Incorporation from the Ministry of Corporate Affairs (MCA). The COI includes essential details such as the Company Identification Number, PAN and TAN.
benefits
What's Good
about a Nidhi Company
Easy Formation
Incorporating a Nidhi Company is relatively straightforward, requiring no licence from the Reserve Bank of India. This facilitates a smooth and hassle-free formation process and makes it an accessible and viable option, especially for small communities and groups seeking a straightforward financial model.
Net Owned Funding System
To establish a Nidhi Company, a minimum net owned fund of ₹10 lakhs is required, ensuring a reasonable financial foundation for its operations.
Lower Risk
A Nidhi Company is authorized to extend loans or accept deposits exclusively from its members.It only engages in financial activities designed to be low-risk, steering clear of speculative ventures.This risk-averse approach contributes to the stability and reliability of their financial operations.
Minimum Seven Members
With a requirement for a minimum of seven members, Nidhi Companies can be formed with a relatively small group, making it accessible for local communities and small societies.
Limited Regulatory Requirements
Compared to other financial institutions, Nidhi Companies face fewer regulatory requirements.It is not needed to acquire an RBI licence to operate.It can be incorporated as Public Limited Companies.
No External Involvement
Nidhi Companies exclusively cater to the needs of their members. This absence of external involvement ensures that financial transactions are conducted with a focus on the welfare of the members rather than external stakeholders.
What do you get
when you register with our help
Ready to Register your Company?
When you register your business with the help of Bright Advis, you not only get the items mentioned on the side, you also get a friend who advices, guides and helps you grow into a great business.
- Digital Identification Number
- Digital Signature Certificate
- Name of the Company
- Company PAN
- MOA & AOA
- Company TAN/TDS
- Stamp Duty
- Certificate of Incorporation
- Expert advice you can count on
- Our bright support on every thing needed to complete the registration.
testimonials
What our clients say
Why Bright Advis
There are many reasons why clients choose Bright Advis, but from our experience we have listed the four main reason why you should go with us.
Bright & Knowledgeable
Bright Advis delivers high quality financial services by a team of bright and knowledgeable experts.
Always happy to help
Bright Advis commit to provide dedicated support and assistance to our clients.
Professional & Approachable
We maintain a high level of professionalism while being easily approachable for our clients.
Easy & Quick
We focus on streamlining and simplifying the complex processes for our clients.
Checklist for Registration
This checklist includes everything that you would need to open a Private Limited Company. These are mandatory requirements.
- A minimum of seven members
- DIN for all Directors
- DSC for all Directors
- Name reservation of the company
- Memorandum of Association
- Articles of Association
- Company PAN & TAN
- Open a current bank account in the name of the company
- Proof of Registered Office
Timeline
After consultation and review of required documents by a Bright Advis expert, the incorporation process takes between 7 to 10 working days.
Want to setup a Nidhi Company Speak with an expert.
Frequently Asked Questions
Unlike other types of NBFCs, such as investment companies or asset finance companies, a Nidhi Company primarily deals with its members and operates on the principle of mutual benefit. It cannot engage in certain financial activities like lending to non-members or investing in securities.
Any individual or entity who fulfills the eligibility criteria specified by the Nidhi Rules, 2014 can become a member of a Nidhi Company. Members typically include individuals residing in the locality of the Nidhi Company’s operations.
To register a Nidhi Company, it must have at least 200 members, a minimum net owned fund of Rs. 10 lakhs, and fulfill other requirements specified by the Ministry of Corporate Affairs (MCA). The company must also incorporate the words “Nidhi Limited” as part of its name.
No, a Nidhi Company cannot accept deposits from the public. It can only accept deposits and provide loans to its members as per the provisions of the Nidhi Rules, 2014.
- A Nidhi Company can only provide loans to its members for their mutual benefit, and the loan amount must not exceed a certain limit prescribed by the Nidhi Rules, 2014. Additionally, the interest rates charged on loans must be reasonable and within the limits set by the rules.
Yes, Nidhi Companies are regulated by the Ministry of Corporate Affairs (MCA) and must comply with the provisions of the Companies Act, 2013, and the Nidhi Rules, 2014. They are also subject to periodic inspections and audits by regulatory authorities to ensure compliance with the rules and regulations.
Start Your Nidhi Company with Bright Advis
Community-based lending made simple, affordable, and 100% compliant.
Looking to launch a financial business that promotes savings and lending within a trusted community? A Nidhi Company might be your best bet. With Bright Advis, the entire registration process becomes easy, transparent, and handled by experts.
What is a Nidhi Company?
A Nidhi Company is a type of Non-Banking Financial Company (NBFC) registered under the Companies Act, 2013. Its core purpose is to promote the habit of saving among members and provide loans at reasonable interest rates—based on the principle of mutual benefit.
Unlike a proprietorship firm, which is run by a single individual, a Nidhi Company enables community-based financial growth through collective ownership and lending.
Why Choose a Nidhi Company?
- Lower Compliance: Compared to NBFCs, regulations are simpler.
- Limited Liability: Shareholders aren’t personally liable for company debts.
- Encourages Savings: Promotes financial discipline among members.
- Community Finance Model: Self-sustaining, member-centric operations.
Advantages of Registering a Nidhi Company
- Easy to manage financial activities among members
- Lower risk than banks or chit funds
- Statutory recognition under the Companies Act, 2013
- Cost-effective model for small communities
- Limited RBI involvement
- Focus on mutual financial growth
Eligibility Criteria
- Minimum 7 members and 3 directors
- ₹10 lakh paid-up capital
- Unique name ending with “Nidhi Limited”
- No preference shares allowed
- Operate only among members
- Maintain net-owned fund (NOF) & 1:20 NOF-to-deposit ratio
Documents Required
- PAN Card and ID proof of all members
- Passport-size photos
- Proof of registered office (Rent Agreement, Utility Bill)
- MoA and AoA drafts
- TAN (Tax Deduction Account Number)
- Company bank details
Registration Process
- Digital Signature (DSC): For all proposed directors
- Director Identification Number (DIN): Apply via MCA portal
- Name Reservation: Using RUN with “Nidhi Limited” suffix
- Incorporation Filing: File SPICe+ (INC-32), MoA (INC-33), and AoA (INC-34)
- Certificate of Incorporation: Issued by Registrar of Companies
Mandatory Forms
- NDH-1: Statutory compliance within 90 days
- NDH-2: Apply for extension (if 200 members not achieved)
- NDH-3: Half-yearly returns
- AOC-4: Annual financial statements
- MGT-7: Annual returns
- DIR-3 KYC: Annual KYC of directors
Post-Incorporation Compliance
- Add at least 200 members within 1 year
- Maintain NOF of ₹10 lakhs minimum
- Maintain 1:20 NOF-to-deposit ratio
- File NDH forms on time
- Maintain books, registers, and meeting minutes
- Comply with Nidhi Rules, 2014
Restrictions for Nidhi Companies
- No chit funds, leasing, insurance, or hire-purchase business
- No deposits or loans for non-members
- No preference shares
- Branches allowed only after 3 years of profits
Nidhi Company vs. Proprietorship
| Feature | Nidhi Company | Proprietorship |
|---|---|---|
| Ownership | Community (Min. 7 members) | Single individual |
| Compliance | Moderate | Minimal |
| Liability | Limited | Unlimited |
| Regulation | Companies Act, 2013 | None |
| Funding | From members | Personal funds |
Registration Fees
At Bright Advis, our pricing is transparent and startup-friendly:
- All-inclusive packages starting from ₹30,000
- No hidden charges
- Includes government fees, DSCs, DINs, and professional support
Why Choose Bright Advis?
- Complete handholding from start to finish
- Expert advisors in Nidhi Company laws
- Dedicated compliance support
- Affordable plans for startups
- Timely filings, zero penalty risk
Frequently Asked Questions
- Q1. What is the objective of a Nidhi Company?
- To encourage savings and offer credit only among members.
- Q2. Is RBI approval needed?
- No, Nidhi Companies don’t require RBI approval.
- Q3. Can it lend to non-members?
- No, all activities are restricted to registered members.
- Q4. How long does registration take?
- Typically 30–45 working days with complete documents.
- Q5. What if it doesn’t get 200 members in a year?
- File NDH-2 to apply for an extension.
- Q6. Can it accept recurring deposits?
- Yes, from members only.
- Q7. Can it open branches?
- Yes, after 3 consecutive profitable years.
- Q8. Can foreign nationals become members?
- No, only Indian residents are allowed.
- Q9. What’s the minimum capital required?
- ₹10 lakh in paid-up equity share capital.
- Q10. Does Bright Advis offer post-registration support?
- Yes, we provide full compliance and filing services.
Ready to Register Your Nidhi Company?
Bright Advis makes the process fast, affordable, and legally compliant—so you can focus on building your community-based financial business.
Bought Together
There are many reasons why clients choose Bright Advis, but from our experience we have listed the four main reason why you should go with us.
Outsource Accounting & Bookkeeping
Save valuable time, money and labor by outsourcing your accounting and bookkeeping tasks to Bright Advis experts.
Streamline Payroll Hassle-Free
Trust our experts to handle payroll complexities, allowing you to focus on your core business activities. Simplify your payroll process entirely.
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