Nidhi company Registration – Online Procedure ,  Fees , Required Documents.

While many investment companies in India handle substantial funds and banks offer limited growth for savings, a Nidhi Company stands out as an ideal solution for those looking to enhance their savings with greater financial growth potential. Governed by the Companies Act, 2013, Nidhi Companies are a type of public limited company specifically designed to promote savings among their members. They offer a simple and effective way to save and grow your money. Discover the numerous benefits of a Nidhi Company, from its role in facilitating member savings to its flexible financial growth opportunities. Learn about the registration process, including the essential requirements, associated fees, and the step-by-step procedure to establish your own Nidhi Company. This approach provides a robust platform for managing and expanding your savings effectively.

What is Nidhi Company


A Nidhi Company is a unique type of public limited company in India, designed to foster savings and provide financial support among its members. Operating under the Companies Act, 2013, Nidhi Companies are primarily focused on their members, offering them a variety of savings and loan options. These companies aim to promote a culture of saving and facilitate access to financial resources, all while ensuring transparency and protection for their members. They handle deposits and loans exclusively within their membership and are restricted from accepting public deposits or investing in stocks. This structure allows Nidhi Companies to provide a supportive platform for individuals to save and grow their money while accessing loans in a controlled and regulated environment.

Benefits of Nidhi Company Registration


  • Encourages Saving: Promotes a culture of saving among members by providing a formal platform for financial growth.
  • Exclusive Financial Management: Handles deposits and loans exclusively among its members, fostering a supportive financial community.
  • Regulatory Protection: Governed by the Companies Act, 2013, ensuring transparency and protecting members’ interests.
  • Competitive Interest Rates: Offers attractive interest rates on deposits and loans, enhancing financial benefits for members.
  • Sustainable Ecosystem: Creates a reliable and structured environment for managing savings and borrowing, tailored to member needs.

Nidhi Company Registration Process: Step-by-Step


  1. Obtain Digital Signature Certificate (DSC)
    Secure DSCs for all proposed directors, which are essential for signing online documents.
  2. Apply for Director Identification Number (DIN)
    Obtain DINs for all directors through the Ministry of Corporate Affairs (MCA) portal.
  3. Name Reservation
    Reserve your company’s name using the SPICe+ form on the MCA portal. Ensure the name adheres to Nidhi Company guidelines.
  4. Prepare and File Incorporation Documents
    Submit the SPICe+ form along with the required documents, including the Memorandum of Association (MOA) and Articles of Association (AOA).
  5. Submit Required Documents
    Provide documents such as PAN cards, address proofs of directors, proof of registered office address, and NOC from the property owner.
  6. Receive Certificate of Incorporation
    Once the Registrar of Companies (RoC) processes and approves your application, you will receive the Certificate of Incorporation, officially establishing your Nidhi Company.
  7. Post-Incorporation Compliance
    Complete additional compliance requirements such as obtaining a PAN and TAN, and adhering to statutory regulations.

What Activities Are Prohibited for the Nidhi Company?


As Nidhi Companies operate within the framework of non-banking financial transactions, they are restricted from engaging in certain activities. These include:

  • Advertising for Deposits
  • Chit Funds
  • Lottery Schemes
  • Insurance
  • Leasing Finance
  • Hire-Purchase Finance
  • Selling Members’ Assets
  • Partnerships for Lending/Borrowing
  • Deposits/Lending to Outsiders

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