Minimum Requirements
- Minimum 3 Directors
- Minimum 7 Shareholders
- Minimum Paid-up Capital: ₹10,00,000
- Maximum 15 Directors
- At least one Director must be an Indian Resident
Key Benefits of Starting a Nidhi Company
- Limited Liability protection to safeguard personal assets of directors
- Accept deposits and lend loans exclusively to members
- Easy access to public savings through member-based deposits
- Promotes habitual savings among small groups
- Offers a simplified legal structure compared to NBFCs
- Lower borrowing rates for members compared to traditional banks
What is a Nidhi Company?
A Nidhi Company is a type of Non-Banking Financial Company (NBFC), registered under Section 406 of the Companies Act, 2013. However, it is exclusively meant for its members, allowing deposits and lending only within its member base for mutual benefit.
Only individuals can become members; corporate bodies or partnerships are not allowed to join or transact with a Nidhi Company. It aims to encourage thrift and savings while offering easy credit to members at affordable rates.
Basic Conditions to Register a Nidhi Company
- Must be a Public Company as per the Companies Act
- Preference Shares not permitted under any circumstances
- Must include a clause in its MOA restricting operations to member-based deposits and lending only
- Company name must end with “Nidhi Limited”
- Minimum paid-up capital of ₹10,00,000 is mandatory
Post-Incorporation Requirements (Within 1 Year)
- Minimum 200 members required within one year of incorporation
- Net Owned Funds (NOF): Must be at least ₹20,00,000
- Term Deposit Reserve: At least 10% of total outstanding deposits must be held as unencumbered term deposits
- Deposit to Capital Ratio: Cannot exceed 20:1
Eligibility Criteria
Members and Directors
- 7 Members and 3 Directors are required at the time of incorporation
- All members must hold at least one share and be registered in the company’s member register
- One director must be an Indian resident
Documents Required for Nidhi Company Registration:
For Members and Directors
- PAN Card (self-attested)
- Identity proof (Passport / Aadhaar / Voter ID / Driving License)
- Address proof (Bank Statement / Utility Bills – not older than 2 months)
- Passport-size photographs (2 per person)
For Registered Office
- Owned Office: Utility bill + property ownership documents + NOC
- Rented/Leased Office: Rent agreement + utility bill + NOC from landlord
Additional Information Required
- Total authorized and paid-up capital
- Place of birth and duration of residence of members/directors
- Member and director occupations
- Business objective of the company
- Educational qualifications
- Contact details – mobile number and email ID
Nidhi Company Registration Process (Step-by-Step)
Step 1: Name Reservation (SPICe+ Part A)
File the name reservation application through SPICe+ (Part A) on the MCA Portal. Ensure that the chosen name is:
- Not already taken
- Not infringing on existing trademarks
Step 2: Fill SPICe+ Part B, MoA, AoA & AGILE-PRO
- Complete incorporation details via SPICe+ Part B
- Submit e-MoA (INC-33) and e-AoA (INC-34)
- Fill AGILE-PRO form for mandatory registrations like EPFO, ESIC, GST, Professional Tax (if applicable), and bank account
Step 3: Convert Forms to PDF and Affix DSC
- Download the SPICe+ application
- Affix the Digital Signature Certificate (DSC) of directors and subscribers
Step 4: Upload Forms to MCA
Submit the digitally signed documents on the MCA portal for review and approval
Step 5: Auto-Generated INC-9
INC-9 (declaration by subscribers/directors) will be auto-generated and electronically submitted (unless:
- More than 20 subscribers/directors
- Subscribers/directors don’t have DIN/PAN)
Recent Amendments and Compliance Highlights
- No SRN required for SPICe+ Part A names
- Mandatory ESIC and EPFO registrations for all new companies
- Professional Tax Registration required for companies in Maharashtra
- Bank account creation is compulsory through AGILE-PRO
- MoA/AoA must be filed electronically (up to 7 subscribers); physical copies needed for foreign nationals or exceptions
- Statutory Returns: Must be filed if threshold for EPFO/ESI applicability is crossed
Special Note for Foreign Nationals & Non-Individual Subscribers
| Case | Required Forms & Attachments |
|---|---|
| Foreign national subscriber (no DIN) | SPICe+ (INC-32) + Apostilled MoA & AoA |
| Indian national subscriber (not a director) | SPICe+ + e-MoA & e-AoA |
| Foreign national (subscriber-cum-director with valid DIN & Business Visa) | SPICe+ + e-MoA & e-AoA |
| Foreign national (no business visa) | SPICe+ + Apostilled documents (e-MoA & e-AoA not accepted) |
Where more than 7 subscribers, MoA and AoA must be filed manually as attachments.
Why Register a Nidhi Company?
- Provides credit access to members without third-party interference
- Encourages small savings and investments in communities
- Operates with lower risk, focused only on registered members
- Cost-effective way to start a mutual financial support organization
Start Your Nidhi Company Today
With simplified compliance, low setup costs, and exclusive member-driven operations, Nidhi Companies are an excellent choice for cooperative financial ventures. Get expert help with end-to-end registration and compliance.