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Nidhi Company 

A Nidhi Company is a type of NBFC (Non-Banking Financial Company) recognized under Section 406 of the Companies Act, 2013, created to promote savings and lending among members only.

Who Can Register?

  • Minimum 7 members and 3 directors required.

  • Only individuals can be members; companies/trusts cannot.

  • “Nidhi Limited” must be included in the name.

Why It Matters

  • Encourages thrift and mutual benefit within a small community.

  • Easy to form compared to NBFCs since no RBI approval is required.

  • Provides members with safe borrowing/lending options.

Process of Registration

  1. Obtain DSC & DIN for directors.

  2. File SPICe+ form with MCA for incorporation.

  3. Draft Memorandum & Articles with Nidhi objectives.

  4. Post-incorporation compliance (opening bank account, statutory registers, filing NDH-1 return).

Documents Required

  • ID & Address Proof of Directors and Members.

  • Registered Office Proof (Rent Agreement/Ownership papers + Utility Bill).

  • MOA & AOA with “Nidhi” objectives.

Penalty for Non-Compliance

  • Fine up to ₹5,000 for company.

  • Further fine of ₹500 per day for continuing default.

How LTC Helps

  • End-to-end incorporation & compliance support.

  • Filing NDH returns (NDH-1, NDH-2, NDH-3).

  • Drafting MOA/AOA in line with Nidhi Rules, 2014.

  • Ongoing advisory to keep your Nidhi fully compliant.