Nidhi Company

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A Nidhi Company is one type of a Non-Banking Financial Company (“NBFC”) usually engaged in borrowing and lending money to its members. It doesn’t require a RBI License but is registered as a public company. Minimum 7 members and an equity share capital of Rs. 5 lakh is required to form a Nidhi Company. The following process is to be followed for registration:


1. First obtain a Digital Signature Certificate (“DSC”): One can apply online and obtain a DSC from agencies certified by the government. It usually takes a couple of days and cost depends on the agency through which one obtains it.

2. Applying for a Director Identification Number (“DIN”): A DIN is required for a person to be a director in a company.

  1. Filing of a form by all subscribers to the Memorandum of Association.
  2. Filing of a form by all directors along with a declaration as per rules 5 & 6 given in Nidhi Rules 2014. These are to be signed by subscribers as well.

In particular, there should be only one object in MOA of the company: “cultivating the habit of thrift and savings amongst its members, receiving deposits from, and lending to, its members only, for their mutual benefit.”


It is mandatory for getting a Nidhi status that the company within one year of the registration have:

  1. Minimum 200 members
  2. Net owned funds be Rs. 10 lakhs or more
  3. Unencumbered term depots be 10% or higher of what outstanding deposits are
  4. Ration between net owned funds and deposits can be higher than 1:20.


  1. The documents required are: ID proofs, address proofs, photos, PAN card, proof of registered place of business and an NOC from the landlord.


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