PAN Card & Aadhaar Card
Passport-size Photograph
Address Proof (Bank Statement/Electricity Bill)
Rent Agreement & NOC (if rented)
Latest Utility Bill (Electricity/Water Bill)
MOA/AOA with Nidhi objectives
Declaration of non-engagement in RBI-regulated financial activities
Terms & Conditions
Eligibility:
Minimum 3 directors and 7 shareholders required at registration. Within 1 year, must achieve 200 members and ₹10 lakh net owned funds.Name Requirements:
Company name must end with “Nidhi Limited.” Name approval subject to MCA discretion.Processing Time:
Standard registration time is 7–10 working days post document submission. Delays due to MCA backend possible.Operational Restrictions:
Lending and deposit activities must be member-only. No business with outsiders is allowed.Pricing & Inclusions:
Prices exclude government stamp duty, GST, and any third-party services. Additional filings may be billed separately.Refund Policy:
Refund only available before MCA form filing. No refund once submission is complete or services are initiated.Disclaimer:
Kanoons provides facilitation and advisory. Final decision lies with Registrar of Companies (ROC).
Nidhi Company Registration
Empowering community savings and mutual benefit with RBI-recognized financial structure.
A Nidhi Company is a type of Non-Banking Financial Company (NBFC) established to encourage savings and thrift habits among its members. It functions on the principle of mutual benefit, accepting deposits from and lending to its members only.
Nidhi Companies are governed by Section 406 of the Companies Act, 2013 and the Nidhi Rules, 2014. Although they perform financial activities similar to banks, they do not require an RBI license to operate.
At Kanoons, we offer a smooth, fully compliant process for Nidhi Company registration, helping community-driven businesses launch with clarity and confidence.
Why Choose Nidhi Company? (Advantages & Disadvantages)
Advantages:
- No RBI license needed
- Encourages disciplined savings among members
- Low risk, member-only operations
- Simple financial structure with fewer compliance obligations
- Easy to raise capital through deposits
Disadvantages:
- Cannot deal with non-members
- Strict MCA compliance post-registration
- Limited profit-making potential compared to NBFCs
- Cannot issue preference shares or accept external investments
Who Should Register an Nidhi Company?
- Community groups or welfare associations
- Micro-finance entrepreneurs focused on mutual lending
- Local business networks wanting secure lending frameworks
- People aiming to promote savings culture in a defined member group
- Mutual benefit societies and self-help finance models.
Documents Required for Nidhi Company Registration
Director’s Documents:
- PAN Card & Aadhaar Card
- Passport, Voter ID
- Passport-size Photograph
- Address Proof (Bank Statement/Electricity Bill)
Business Address Proof:
- Rent Agreement & NOC (if rented)
- Latest Utility Bill (Electricity/Water Bill)
Additional:
- MOA/AOA with Nidhi objectives
- Declaration of non-engagement in RBI-regulated financial activities
Nidhi Company Incorporation Process (Step-by-Step)
- Name Reservation (RUN Service)
- Digital Signatures & DIN for Directors
- Filing SPICe+ Incorporation Form
- Drafting MOA & AOA with Nidhi Clauses
- PAN, TAN & COI Issuance
- Post-Incorporation Filing with ROC (NDH-1 & NDH-2)
- Compliance Setup and Guidance
What’s Included in Our Nidhi Company Incorporation Package?
- 3 DSCs & 3 DINs
- Name Reservation via MCA
- MOA, AOA with Nidhi clauses
- SPICe+ Filing, PAN, TAN, COI
- NDH-1 Drafting and Filing
- Basic Post-Incorporation Support
Post-Incorporation Compliances for Nidhi Company
✔ File NDH-1 (Return of Statutory Compliance) within 90 days
✔
File NDH-2 if extension is required to meet member/fund criteria
✔
Maintain minimum net owned funds of ₹10 lakh
✔
Unencumbered term deposits of not less than 10% of outstanding deposits
✔
Annual filings: AOC-4, MGT-7A, and NDH-3 (Half-yearly returns)
✔
Conduct regular board and member meetings
Why Kanoons?
🌟 Quick end-to-end registration
🌟
Dedicated advisor for regulatory filings
🌟
Expert guidance on Nidhi Rule compliance
🌟
Timely alerts for NDH and ROC returns
🌟
Legal support for board resolution and policy drafting
Failure to meet Nidhi Company obligations can result in severe consequences:
- Failure to meet statutory compliance may lead to cancellation of Nidhi status
- Non-submission of NDH-1 or NDH-3: ₹5,000 to ₹1 lakh
- Non-maintenance of member count or net fund: ROC may take legal action
- Late ITR and ROC filings attract daily penalties
Valuable insights to change your startup idea
FAQ
Nidhi Company's Frequently Asked Question
Is RBI approval required for a Nidhi Company?
No. Nidhi Companies do not require RBI approval but must comply with MCA and Nidhi Rules, 2014.
Can a Nidhi Company give loans to non-members?
No. Nidhi Companies can only accept deposits from and provide loans to their registered members.
How many members are required to start a Nidhi Company?
At incorporation, 7 members are required. Within 1 year, the company must have at least 200 members.
What type of deposits can be accepted?
Nidhi Companies can accept fixed, recurring, and savings deposits—only from their members.
Can a Nidhi Company operate across India?
Yes, but the company must ensure compliance with Nidhi Rules in all states of operation and update ROC accordingly.
What happens if the 200-member requirement is not met in a year?
The company must file NDH-2 seeking an extension. Failure to comply may lead to revocation of Nidhi status.
Get Started Today!
Incorporate Your Nidhi Company Now & Get Legal Compliance Support!
Limited-Time Offer
Get Your Nidhi Company Registered at ₹99,999!
Take the first step towards building a legally recognized and protected business. With Kanoons, experience a hassle-free, fully online Nidhi Company Incorporation backed by expert legal and compliance support.
"Simplifying Law & Taxation – Your Compliance, Our Commitment."
Quick Links
Service Offerings
© 2025 Copyright. All Rights Reserved by Kanoons
Kanoons.com, owned and operated by Kanoons Law & Tax Consultants Private Limited, is your trusted partner for taxation, legal compliance, and business registration across India. Whether you are an individual, a startup, or a growing enterprise, we provide expert guidance to navigate complex financial and regulatory landscapes seamlessly. From income tax filing, GST registration, and business incorporation to responding to legal notices, handling corporate audits, and trademark protection, we ensure a hassle-free experience.
Our expert team assists in income tax and TDS filing, simplifying tax compliance for salaried individuals, businesses, and professionals. We provide startup registration, MSME certification, IEC code, FSSAI licenses, trade licenses, and corporate compliance solutions to ensure smooth business operations. Entrepreneurs and businesses can also rely on us for intellectual property rights (IPR), including trademark, copyright, and patent registrations, along with legal support for litigation, summons, and regulatory matters.
By accessing Kanoons.com, you agree to our Terms & Conditions, Privacy Policy, Refund and Returns Policy and Disclaimer. All legal services are provided by our panel of experienced advocates, chartered accountants, and tax consultants. The use of this website does not establish a client-attorney relationship. We ensure confidentiality and data protection in compliance with applicable laws.
The wordmark "Kanoons" and its logo are the exclusive property & registered mark of Kanoons Law & Tax Consultants Private Limited. Any unauthorized use, reproduction, or modification is strictly prohibited and subject to legal action.
For support, queries, or legal consultation, contact our expert team today and experience 100% compliance with accuracy and efficiency.
"Our Nidhi Company registration was seamless and smooth with Kanoons. They handled everything on time."
Mohammed N. Community Banker