Nidhi Company Registration

Nidhi Company Registration in India – Complete Guide

What is a Nidhi Company?

A Nidhi Company is a Non-Banking Financial Company (NBFC) recognized under Section 406 of the Companies Act, 2013. Its core purpose is to encourage savings among members and lend money only to its registered members, making it a mutual benefit society.

Nidhi Companies cannot deal with the public or outsiders. They operate only among their members.

Key Features:

• Promotes savings and thrift among members

• Accepts deposits and lends to members only

• No RBI approval required (but regulated by MCA)

• Ideal for small savings and credit cooperatives

Eligibility Criteria:

• Must be a public limited company

• Cannot issue preference shares

• Cannot carry out business of chit fund, hire purchase, leasing, or insurance

• Can only accept deposits and give loans to its members

Documents Required:

For Directors/Shareholders:

• PAN Card

• Aadhaar Card / Voter ID / Passport / Driving License

• Passport-size photo

• Address proof (bank statement/utility bill)

For Registered Office:

• Rent agreement or ownership proof

• Utility bill (not older than 2 months)

• NOC from property owner (if rented)

Nidhi Company Registration Process:

1. Obtain DSC & DIN

   • For all proposed directors.

2. Reserve Company Name (SPICe+ Part A)

   • Must end with “Nidhi Limited”.

3. File Incorporation Form (SPICe+ Part B)

   • Attach MOA, AOA, and other documents.

4. Receive Certificate of Incorporation

   • Issued by Ministry of Corporate Affairs (MCA).

5. Apply PAN & TAN

   • Comes with incorporation.

6. Open Bank Account & Deposit Capital

   • Minimum 10 lakhs paid-up capital.

7. Start Operations & Add Members

   • Reach 200 members within 1 year.

8. File NDH-1 with MCA (within 90 days of incorporation)

   • To report compliance of member & deposit requirements.

9. NDH-2 (if extension required)

   • Apply if unable to meet conditions within a year.

Timeline:

Usually takes 15–25 working days, depending on document readiness and approvals.

Post-Incorporation Compliances:

• Maintain minimum NOF & member count

• File NDH-1 annually

• File NDH-3 (half-yearly return)

• Annual return filing with ROC (MGT-7 & AOC-4)

• Maintain books, loan records, deposit register, etc.

Why Choose SSA TAX for Nidhi Company Registration?

We provide expert services for:

• End-to-end company registration

• Drafting of MOA, AOA & business plan

• DSC, DIN & MCA filings

• PAN, TAN & bank setup

• Ongoing ROC & NDH compliance

• Guidance for 200-member fulfillment