Nidhi Company

Nidhi Company Registration

Nidhi Company is a kind of company in Indian non-banking finance sector. The Nidhi Company is recognised under the section 406 of Companies Act 2013. The Nidhi companies are governed by Nidhi rules 2014. The RBI approval is not necessary to register the company. All the Nidhi Company should ensure that it is not less than 200 members within a period of one year commencement. The Nidhi Company must be started within an initial capital of Rs.5 lakh. It requires at-least 7 members and requires 3 Directors initially. It is formed to borrow and to lend money to its members. The Nidhi Company is registered as public company and it should have “Nidhi Company” as the suffix. Nidhi Company cannot deal with chit-funds, insurance, securities business.

Documents Required For Nidhi Company Registration in Chennai

  • Aadhaar card
  • Director’s PAN card
  • Rental deed
  • Sales deed
  • No objection certificate.

Pre-requisition of Nidhi company registration

  • Minimum of seven shareholders are required
  • Minimum of three Directors are required
  • DIN for Directors
  • Minimum paid up capital should be Rs.5 lakh
  • Minimum number of members required is 200.
  • The net owned funds of Nidhi Company will be 10 lakhs or more.
  • The Nidhi Company should possess the suffix as “Nidhi Company”.
  • The Nidhi Company shall not issue the preference shares.

Procedure to register

Step 1: Name approval

The reservation of the name of Nidhi Company will have the authorization by the central government. It is done under the non-STP. Free search of the name of the company should be done in MCA portal.

Step 2: Obtain DSC and DIN

DSC and DIN should be applied and obtained.

Step 3: MOA and AOA

Though MOA and AOA, must include the main objective of Nidhi Company as charity.

Step 4: File Nidhi Company agreement

The registration of Nidhi Company takes 15-20 days. The certification is declared and mentions CIN number.


  • It is a single office which is governed by the members and no third party is allowed to take involvement in it.
  • The secured investments are guaranteed
  • The loans are provided with minimal interest and with minimal documentation.

Anyone who is above 18 years of age can become member of the Nidhi Company. The person should contain valid address proof and identity proof.

The Nidhi companies can provide loans to its members who have provided some securities like gold, silver and needed financial securities against the loan.

Nominal value of the Nidhi Company is not less than ten rupees each. It shall issue the equity shares only if it is less than ten rupees each.

Nidhi software is unique cloud based secured platform for managing the business. It also supports the debit cards, IFSC, utility payment from the saving much more.

The Nidhi company is incorporated under the Companies Act 2013 shall be a public company.

Certainly the Director of the Nidhi Company should hold the shares in it.