Nidhi Company Registration
A mutual benefit society, for lending among members.
A Nidhi company exists to cultivate thrift and savings among its members, taking deposits from and lending to members only. It is the one deposit-taking form that does not need an RBI licence, which is why it is used for community lending.
It incorporates as a public limited company with "Nidhi Limited" in the name, needing at least seven members and three directors, and ₹10 lakh of equity capital.
The post-incorporation conditions are strict and are where most fail: within 120 days it must have at least 200 members, net owned funds of ₹20 lakh, and a net owned funds to deposits ratio no worse than 1:20 — declared in Form NDH-1.
What is included
- Incorporation as a public company with Nidhi objects
- DSC and DIN for three directors
- NDH-1 compliance declaration within 120 days
- NDH-3 half-yearly return calendar
What we need from you
- PAN and Aadhaar of seven members and three directors
- Registered office proof and no-objection letter
- Proof of ₹10 lakh equity capital
- Details of the proposed membership base
Questions
Does a Nidhi company need an RBI licence?
No. Nidhi companies are notified under section 406 of the Companies Act and are exempt from most RBI regulation, because they deal only with their own members. They may not accept deposits from or lend to anyone who is not a member.
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Get started with Nidhi Company Registration
Tell us a little about the business and a chartered accountant will call you back. You will get a firm quote before any work begins.
- A qualified accountant on the call, not a call centre
- A firm quote before any work begins
- Your details are never sold or shared