Nidhi Company Registration
Last updated: August 2026 · Reviewed by the Ravel Corporate Advisors team
A Nidhi Company lets a group cultivate the habit of savings and lend among its members. We incorporate your Nidhi and guide you through the strict post-registration requirements so you stay compliant.
Key takeaways
- A mutual-benefit company for borrowing and lending among members only.
- Minimum 7 members and 3 directors at incorporation.
- Minimum equity share capital of ₹10 lakh.
- Within one year: 200+ members and Net Owned Funds of ₹20 lakh.
What is a Nidhi Company?
A Nidhi Company is a type of public company under Section 406 of the Companies Act, formed to cultivate savings and provide loans among its own members. It deals only with its members, cannot carry on chit fund, hire-purchase, insurance or external lending business, and is a relatively low-cost way to run a community finance operation legally.
Key requirements
- Members: minimum 7 (at least 3 as directors) at incorporation.
- Capital: minimum equity share capital of ₹10 lakh.
- Within one year: at least 200 members and Net Owned Funds (NOF) of ₹20 lakh.
- NOF to deposit ratio: not more than 1:20.
- No preference shares; the name must end with “Nidhi Limited”.
Documents required
- PAN, Aadhaar, identity and address proof of directors/members; passport-size photos.
- Registered office proof — utility bill not older than 2 months + rent agreement + NOC.
- Draft MOA & AOA with Nidhi objects.
- DSC and DIN for the directors.
Step-by-step process
- DSC & DIN for the directors.
- Name reservation ending with “Nidhi Limited”.
- Incorporation filing (SPICe+) with MOA/AOA.
- Certificate of Incorporation, PAN and TAN.
- Post-incorporation — reaching 200 members & NOF, and filing Form NDH-1/NDH-4.
A Nidhi has ongoing filings — we handle ROC compliance and annual filing too.