What is Nidhi Company?

  • A Nidhi Company or Mutual Benefit Society/Fund or any other name by which you may know it,is a company created for the mutual benefit of its members.This mutual benefit comes from group lending and borrowing.

  • Within these companies the members make deposits and these deposits are used to give secured loans to the members at a reasonable interest rate.The basic idea of a nidhi company is to save its members from the exploitation of money lenders who charge high interest rates.

  • By becoming members of Nidhi’s people develop habit of savings and self-reliance .

       Background or history

  • Long before the financial institutions were regulated and proper financial framework was established ,idea of group lending and borrowing existed but not by the same name or in the same way as it exist today as Nidhi Company.

  • In Hindi, Nidhi refers to finance, treasure or fund. Nidhi’s used to grant secured loans against tangible assets for personal purposes like family functions, marriages, medical issues, education, property purchase, etc.

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Nidhi Company Registration

Please fill the form for NidhI Company

Why Nidhi Company should be registered?

A registered Mutual Benefit Society has various advantages. Such as:-

  • Limited Liability: The members have limited liability which is extended up to the amount they have contributed or invested in the company. They are liable only for their share in the company. Personal Assets are beyond the reach of liability. They cannot be utilized for meeting the liability of the company.

  • Availability of funds : Funds contributed by members is available for the members themselves at lower interest rates.

  • Legal Existence : A registered Mutual Benefit Society enjoys separate legal existence. The members and the company are different. The company can buy, sale, or acquire assets in its own name, it can also incur debt in its own name, also it can sue or be sued in its own name.

How to register/incorporate a Nidhi Company?

  1. Incorporate a Public Ltd. Company with minimum paid up equity share capital of Rs. 5,00,000 with the sole object of lending and borrowing within the members.

  2. Company must be incorporated with ‘Nidhi Ltd.’ as last words in their name.

  3. Company should ensure that it has minimum 200 members,Rs. 10,00,000 or more of  Net Owned Funds, maximum ratio of N.O.F to Deposit 1:20,debt free term deposits of not less than 10% of the outstanding deposits, etc. Company is then required to file after the close of the first financial year NDH-1 or NDH-2 within 90 days or 30 days with ROC or RD respectively.

  4. Get complete details about registration of Nidhi company   or contact +918750008585 for consultancy.


       MCA on 31st March 2014 notified about Nidhi Rules under which Nidhi Companies are regulated. These rules deals with Share capital and allotment, Membership, Net owned funds, Branches, Rules relating to Directors, Auditor, Loans, Un-encumbered term deposits of Nidhi companies, Acceptance of deposits, Payment of dividend by this companies, etc.

Complete Nidhi Rules, 2014 can be found here.

List of Nidhi Companies is also provided.

Documents Required For Nidhi Company

Pan Card

Pan Card

ID Proof (Any one of the following)

Electricity Bill
Telephone Bill
Mobile Bill
Bank Statement

ID Proof (Any one of the following)

Voter ID
Aadhaar Card
Driving License