Nidhi Company Registration

Nidhi Company registration in India is a popular choice for people looking to form a company that operates with the primary objective of lending money to its members or borrowing from them. It is a type of non-banking financial company (NBFC) registered under Section 406 of the Companies Act, 2013.

Nidhi Companies help in promoting the habit of thrift and savings among their members. They are known for providing affordable and easy loans to their members at lower interest rates, making them ideal for individuals who may not have access to traditional financial institutions.

Nidhi Company Registration

A Nidhi Company is a type of Non-Banking Financial Company (NBFC) registered under Section 406 of the Companies Act, 2013. Its main objective is to promote savings and thrift among its members, accepting deposits and providing loans only to its members for their mutual benefit. It operates on the principle of mutuality — “borrow and lend among members” — and is especially popular for community-based financial activities.

This structure is ideal for:

Individuals or groups looking to start a small-scale finance/lending business
Communities wanting to promote savings among members
Entrepreneurs aiming to create a compliant alternative to informal lending

What is a Nidhi Company?

A Nidhi Company is a financial institution created to encourage savings and provide mutual benefit to its members. It functions as a Non-Banking Financial Company (NBFC) under the supervision of the Ministry of Corporate Affairs (MCA) and follows the Nidhi Rules, 2014.

This model is best suited for:

Individuals or groups looking to start a small-scale lending or savings business
Communities promoting thrift and self-help financing
Farmers, traders, or entrepreneurs seeking community-based financial support

Our Nidhi Company Services

Registration & Incorporation – Complete assistance with DSC/DIN, name approval, and incorporation under the Companies Act, 2013.
Drafting of Legal Documents – Preparation of Memorandum of Association (MOA), Articles of Association (AOA), and other Nidhi Rules-compliant documents.
Post-Incorporation Compliance – Filing NDH-1 (Return of Statutory Compliances) and ensuring minimum capital and membership compliance.
Annual ROC Filings – Timely filing of NDH-3, AOC-4, and MGT-7 forms with the Registrar of Companies (ROC).
Financial & Legal Advisory – Guidance on bookkeeping, audits, deposit limits, and RBI/MCA regulatory compliances.

Why Choose Prowess Tax Consultancy

Expert professionals specializing in Nidhi Company registration and compliance.
Step-by-step support from incorporation to post-registration compliance.
Timely reminders for NDH and ROC filings.
Transparent pricing with no hidden charges.
Comprehensive legal, accounting, and taxation support.

Frequently Asked Questions (FAQs)

1. What is the minimum requirement to start a Nidhi Company?

A Nidhi Company must have at least 7 members and 3 directors at incorporation. Within one year, it should have at least 200 members and ₹10 lakh paid-up share capital.

2. Is RBI approval required to start a Nidhi Company?

No, RBI approval is not required since Nidhi Companies operate only among their members and are governed by the Ministry of Corporate Affairs.

3. What are the key compliances for a Nidhi Company?

Nidhi Companies must file NDH-1 (within 90 days of incorporation), NDH-2 (for extension), NDH-3 (half-yearly return), along with annual filings like AOC-4 and MGT-7.

4. Can a Nidhi Company lend money to non-members?

No, Nidhi Companies are restricted to dealing only with their registered members for deposits and lending activities.

5. What are the benefits of forming a Nidhi Company?

It promotes savings among members, provides low-interest loans, ensures legal recognition, and operates with lower capital and regulatory requirements than NBFCs.