Nidhi Company Registration

Rs 33,999.00  Easily incorporate a Nidhi Company in India

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Min 10 Lac

Nidhi Registration Process

25 Days

  1. Digital Signature Certificate

    1 Working Day

    A Digital Signature Certificate (DSC), generated and authenticated by a licensed certifying authority, is an electronic encrypted signature. A DSC is mandatory for all the proposed Directors of a company and would be used to sign the e-documents for company incorporation. To apply for a DSC, documents such as PAN card, photograph and address proof would be required.

  2. Director Identification Number

    1 Working Day

    A Director Identification Number (DIN or DPIN) is a unique number issued by the Ministry of Corporate Affairs (MCA) to maintain the information of the directors of a company in the MCA’s database. All directors of a company (proposed or existing) would necessarily need a DIN number to serve on the board of a company.

  3. Name Approval

    up to 7 days

    Once the DIN and DSC have been obtained, the proposed name of the company will have to be submitted to the MCA. The company name should be unique, must comply with the naming guidelines set by the MCA, and should be suggestive of the nature of the business. We will conduct a name search to ensure that the proposed name is not rejected on the grounds of similarity. The name of the company will usually end with ‘Nidhi Limited’.

  4. Incorporation Documents

    10 Working Days

    We will then draft the Memorandum of Association (MoA) and Articles of Association (AoA) for the new company. Applications for PAN (Permanent Account Number) and TAN (Tax Deduction and Collection Account Number) for the company will be made and submitted. E-form SPICe 32 will be filled in the prescribed and submitted along with the supporting incorporation documents, MoA and AoA. Once the application has been duly verified and receives government approval, we will receive the Certification of Incorporation, and the same will be e-mailed to you.

    * MCA Approval may take time longer than usual


Nidhi Company Cost Breakdown


100% Transparent Pricing. Nidhi is a word representing 'finance' or 'fund'

Consultancy and Name Availability Search Free
7 DSCs 7,000.00
Govt Fee 4,800.00
Stamp Duty 3,000.00
Notarization Cost 3,000.00
PAN and TAN Fee 170.00
Professional Fee 13,584.00
Goods and Services Tax 2,445.00
Total Cost 33,999.00

* The above-mentioned government fee has been calculated on a minimum contribution of Rs.500000
* The stamp duty may vary from state to state
* Extra charges for NRI/Foreign directors or Foreign shareholding companies


Documents Required for Nidhi Company


ID Proof

PAN card of all the proposed directors and Passport/Driving License/Voters ID

Address Proof

Utility Bill (no older than 2 months) in the name of the Director, or latest bank account statement


Recent Passport Photo

Registered Office Proof

Notarised rent agreement and NoC from the owner (for rented office), Property registration/ House Tax receipt (for an owned property), and Utility Bill (no older than 2 months).


What do you get



Digital signature for two directors to digitally sign the documents


Defines the rules of the business


Defines the objectives of the business

PAN Number

PAN number of the company to open a bank account

TAN Number

Tax deduction number for filing tax return

Rubber Stamps

Two rubber stamps, one with the name of company and one with the name of director

Incorporation Certificate

Certificate of incorporation bearing company's registration number and details

Questions? Call us on 011-408-44560

Why Choose QuickCompany

Tech Enabled

Filings through Automated Technology

Online Procedure

Submit all your documents online

Fastest Filings

We try to file your Company the same day you submit your documents


We track your company and updated you on all necessary steps


Frequently Asked Questions

What is Nidhi Company?

A Nidhi Company is a part of a Non-Banking Financial Company (NBFC), incorporated with the sole objective of accepting deposits and giving loans to its members.

How does a Nidhi Company function?

A Nidhi Company accepts deposits from its members and uses these deposits to lend money to its other members. The basic idea is to save the members from the exploitation of the money lenders who charge unreasonably high rates of interest.

What are the benefits of incorporating a Nidhi Company?

  • Limited Guidelines
  • Ease in formation
  • Low rates of interest
  • No outsider intervention
  • Proper channel for small savings of the lower and middle sections of society

What are the minimum requirements to incorporate a Nidhi Company?

  • Minimum of 7 shareholders
  • Minimum of 3 directors
  • There is no minimum capital requirement (Earlier it was INR 5,00,000)
  • The objective of the company must be to develop the habit of thrift saving among its members.

What are the post-incorporation requirements for a Nidhi Company?

The following conditions must be satisfied within a period of 1 year from the commencement:

  • Net owned fund of INR 10 lakhs or more. Net owned funds mean the money owned by the business.
  • A Nidhi Company must add at least 200 members within its first year, if the company is not able to meet this condition, Form NDH-2 must be filed with the Regional Director.
  • A trust or corporate body cannot be a member of a Nidhi Company.
  • The total deposit accepted should be at a 20:1 ratio to the net owned funds. Meaning the total deposits cannot be over 20 times the net owned funds.
  • Minimum encumbered deposits must be 10% of the outstanding deposits.

What are the eligibility criteria to become a shareholder or director in Nidhi Company?

There are no such criteria specified in the Companies Act to become a shareholder or director in a Nidhi Company.

What is the difference between Nidhi Company and NBFC?

The differences:

  • A Nidhi company is a company incorporated for the mutual benefit of the members. However, an NBFC is a financial institution that operates similar to a bank, but without a banking license.
  • A Nidhi company does not engage in the business of chit fund, hire purchase finance, leasing, insurance or acquisition of securities. On the other hand, an NBFC can engage in all banking businesses like loans and advances, acquisition of shares, leasing, hire purchase, chit fund business, and insurance businesses.

Is it necessary to have the word ‘Nidhi’ or ‘Limited’ at the end of the name of the Nidhi Company?

It is not required to end the name of the Nidhi Company with suffix ‘Nidhi’ or ‘Limited’.

Are there any legal restrictions for a Nidhi Company in India?

  • A Nidhi Company is prohibited from carrying businesses involving chit fund, leasing finance, insurance or acquisition of securities issued by any corporate body.
  • Restricted from the issue preference shares, debentures or any other financial/debt instruments.
  • Cannot accept deposits or lend money to non-members.
  • Cannot pay any incentive or brokerage for mobilizing deposits.

How are Public companies and Nidhi Companies similar?

  • Minimum number of shareholders is seven
  • Minimum number of directors is three
  • Moderate tax advantages

In what manner should the returns of Nidhi Companies be filed?

Return of statutory compliance: Form NDH-1 is to be filed within a period of 90 days from the end of the financial year in which the company was incorporated.

Application to regional director: Form NDH-2 is to be filed in case NDH-1 was not filed within the specified time limits. This might also involve paying late fees for the extension of the said NDH-1 time limits.

Half-yearly Returns: NDH-3 is to be filed with the registrar, along with the necessary fees, within a period of 30 days from the end of the half-year in a particular fiscal period.

How is a Nidhi Company registration done?

The Nidhi company incorporation process is done online through the MCA’s portal using scanned copies of all the required incorporation documents. The form is filled and signed digitally.

Can a Nidhi Company open the branches?

Nidhi Companies are governed under the Companies Act, 2013 and Companies (Nidhi Companies) Rules, 2014. Under the governing laws, a Nidhi Company can open branches if it meets the mandatory compliances with the Registrar. Additionally, the company must meet the following requirements:

  • Track Record of Profit: Must make a profit (after tax) for three consecutive financial years.
  • Maximum Branches Allowed: Three branches can be opened within the district. If a Nidhi company wants to open more than three branches within the district or any new branch outside the district, it shall obtain the prior permission of the Regional Director.
  • Branches Outside the State: No branch can be opened outside the state in which its registered office is situated.

What are the conditions to be followed by a Nidhi Company for giving loans to its members?

  • Maximum loan to a member cannot exceed 1% of the total deposits of the company
  • Unsecured loans and microfinance loans cannot be given
  • Gold loan can be given for a maximum of 1 year
  • Loan repayment schedule cannot exceed 7 years
  • Gold loan cannot exceed 80% of the value of the asset.
  • Loan against property cannot exceed 50% of the property value

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