Overview of Nidhi Company Registration

A Nidhi Company is a type of Non-Banking Financial Company (NBFC) recognised under Section 406 of the Companies Act, 2013. It is formed to cultivate the habit of thrift and savings among its members and can only accept deposits from and lend to its members.

Nidhi Companies do not require an RBI licence to operate, making them one of the simplest ways to start a mutual-benefit finance business in India. A minimum of seven members and three directors are required to incorporate one.

Key Benefits of Nidhi Company Registration

• No RBI approval: Operates as an NBFC without a separate RBI licence
• Limited liability: Members are protected from the company's debts
• Low capital requirement: Can be started with modest initial funds
• Easy deposits and lending: Encourages savings within the member community
• Separate legal identity: The company can own assets and sue in its own name

Documents Required

• PAN card and Aadhaar of all directors and members
• Passport-size photographs of directors
• Address proof (bank statement / utility bill) of directors
• Registered office proof and NOC from the owner
• Digital Signature Certificate (DSC) and DIN of directors

How It Works — Our Process

1. Obtain DSC and DIN for the proposed directors
2. Apply for name approval through the MCA RUN/SPICe+ portal
3. File the SPICe+ incorporation form with MOA and AOA
4. Receive the Certificate of Incorporation, PAN and TAN
5. Comply with Nidhi rules (NDH-1, NDH-4) within the prescribed timelines

Need help getting started? Our experts at Atcorpcare handle the end-to-end process for you. Fill in the enquiry form and a specialist will get in touch.