A Nidhi Company promotes member savings and offers loans exclusively to members as a regulated NBFC.
A Nidhi Company is a type of Non-Banking Financial Company (NBFC) recognized under Section 406 of the Companies Act, 2013. Its primary objective is to cultivate the habit of thrift and savings among its members and to provide loans to them at reasonable rates. Unlike other NBFCs, a Nidhi Company deals only with its members, making it a safe and community-focused financial structure.
Encourages savings and thrift among members
Provides loans at lower interest rates compared to banks
Simple structure with limited compliance requirements
Recognized under MCA, giving legal credibility
Ideal for small community-based financial activities
Nidhi Company registration covers DSC, DIN, name approval, MoA/AoA, SPICe+, nominee, incorporation, typically completed in 7–10 days.
Obtain Digital Signature Certificates (DSCs) for directors
Apply for Director Identification Number (DIN)
Reserve Company Name through MCA portal
Draft Memorandum of Association (MoA) & Articles of Association (AoA)
File SPICe+ Form with MCA for incorporation
Receive Certificate of Incorporation (CoI)
Apply for PAN, TAN, and open a bank account
Comply with post-incorporation requirements (minimum members, net owned funds, etc.)
A complete set of owner KYC documents, office address proofs, NOC or lease papers, photograph, and nominee identification.
PAN & Aadhaar of directors/shareholders.
Address proof (utility bill, bank statement)
Property Owner NOC (No Objection Certificate) or Rent/Lease Agreements.
Passport-size photographs.
Proof of registered office address.
MoA & AoA signed by directors/shareholders.
Communities or groups promoting savings among members.
Entrepreneurs interested in small-scale lending and deposit-taking.
Organizations wanting a legally recognized, member-focused financial entity.
Government fees (vary depending on authorized capital) and stamp duty charges vary from state to state.
Professional service fees (typically starting around ₹5,000 for online packages).
DSC charges (Government fees are subject to change according to official notifications)