Registration of Nidhi Company Online

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Nidhi Company Registration

You think lady’s kitty is all about fun, games, chit-chats and gossips? Well, this is not the case. With the idea of this they have cultivated a habit of saving among its members. Same is being done by Nidhi Company Registration but in more organized & legalized way. One of the simple and easy option to start a borrowing and lending business in India without obtaining RBI approval is Formation of Nidhi Company, Such Nidhi Company Incorporation accepts deposits and provide loans only to their members, it is prohibited from dealing with non-members. Know more about Registration of Nidhi Company here and if you have any question, book a consultation with our Nidhi Company Experts at Compliance Ease Cure LLP.

Definition: -

Nidhi means a Company which has been incorporated as a Nidhi:

“Nidhi” or “Mutual Benefit Society” means a company, which the Central Government may by notification in the Official Gazette, declare to be a Nidhi or Mutual Benefit Society, as the case may be. A Nidhi company is a type of company in the Indian non-banking finance sector, recognized under section 406 of the Companies Act, 2013 & their core business is borrowing and lending money between their members. They are also known as Permanent Fund, Benefit Funds, Mutual Benefit Funds and Mutual Benefit Company. Along with Companies Act, 2013, these companies are regulated under the Nidhi Rules, 2014 issued by the Ministry of Corporate affairs.


  • iconChapter XXVI of Companies Act 2013
  • iconSection 406
  • iconNidhi Rules, 2014
  • iconNidhi Amendment Rules, 2022 w.e.f. 19th April, 2022

The primary object of Nidhi Company is to carry on the business of accepting deposits and lending money to member, borrowers (against jewels) and mortgage of property etc. For over a century Nidhis, with the objective of cultivating the habit of thrift, generally promoted by public spirited men drawn from affluent local persons, lawyers and professionals like auditors, educationists, including retired persons etc. The area of operation was local – within municipalities and panchayats. The functions of a Nidhi company are similar to a bank, but the difference lies in the approach. The funding process starts when the members start contributing funds to the company. Those funds are later used to provide loans to the members.

The principle of mutual benefit has been incorporated to pool the savings from members and lend only to members and never have dealing with non-members. Nidhis were not expected to engage themselves in the business of Chit Fund, hire purchase, insurance or in any other business including investments in shares or debentures. As stated, these Nidhis do their business only with Members. Such Members are only individuals. Bodies Corporate or Trusts are never to be admitted as Members in these companies. Nidhi companies are effectively non-banking financial companies and are engaged in the business of accepting deposits and making loans to their members. The deposit taking activities of Nidhis are governed by the RBI Act and guidelines made thereunder.


Pre-requisites for Incorporation as a Nidhi Company: -

  • iconShall be a public Company;
  • iconShall have Minimum 3 Directors and 7 Shareholders for formation;
  • iconShall have minimum paid up capital of Rupees Ten Lakhs (Rs. 10,00,000/-) (*as per Nidhi Amendment, Rules 2022, prior to amendment it was Rupees Five Lakhs [Rs. 5,00,000/-] ;)
  • iconShall have the last words “Nidhi Limited” as a part of its name; and
  • iconSuch Company shall not issue preference shares.

Documents Required of Nidhi Company Registration Registration

  • iconProof of Registered Office Address: - Copy of Utility bill not older than 2 months along with NOC and Proof of Office Address: Conveyance Deed/ Lease Deed/ Rent Agreement etc. along with rent receipts;
  • iconProof of First Directors and Subscribers not having DIN: - Proof of Identity (Voters Identity Card/ Driving License/ Passport); Proof of Address (Latest Bank Statement/ Telephone Bill/ Mobile Bill/ Electricity Bill); and PAN Card;
  • iconDIR-2 (Consent to Act as Director of the Company) & Interest of such Directors in other entities;
  • iconOther Declarations required as per Applicable Rules.

Checkpoints for Spice+ MOA:

  • iconMain Objects and Incidental or Ancillary Objects;
  • iconThe Main Object should be cultivating the habit of thrift and saving amongst its members & receiving deposits from, and lending to, its members only, for their mutual benefit;
  • iconAuthorised Share Capital of the Company;
  • iconDetails w.r.t Subscribers and Number of Shares Subscribed by them;
  • iconDetails w.r.t Professional witnessing the E-Form.

Checkpoints for Spice+ AOA:

  • iconE-AOA has option of adding, modifying, and deleting Articles; Table F, Schedule-1 of Companies Act, 2013 is applicable in case of Company Limited by shares;
  • iconDetails w.r.t Subscribers;
  • iconDetails w.r.t Professional witnessing the E-Form.

(*In case number of Subscribers are more than Seven then physical copies of MOA & AOA needs to be attached)

Checkpoints for Agile Pro-S (INC-35):

Purpose of Form:

Application for GSTIN (Optional); EPFO, ESIC, Professional Tax (Mandatory for Companies registered in Maharashtra, West Bengal and Karnataka); Opening of Bank Account; Shop and Establishment Registration Number (only for Delhi location);

  • iconSpecimen Signature of Authorised Persons for registration with EPFO;
  • iconProof of Identity and Address of Authorised Director for opening of Bank Account;
  • iconPassport size photograph of First Directors;

Checkpoints for Form INC-9: -

Purpose: Form for Declaration by First Subscribers & Directors as per applicable Rules;


It is Web Based Auto Generated Form (In case if total number of subscribers and/ or directors exceeds twenty (20) and / or any such subscriber/ director has neither DIN/ PAN then it is required to be attached to Spice+ Part B)

Spice+ is the Web based Form which is required to be filled online, once all the details are filled, the E-Forms can be downloaded by clicking on download icon for affixing DSC’s and then such Forms can be uploaded like Normal other E-Forms after making payment of requisite fees.

Legal Procedures of Nidhi Company Registration Registration

Application for Reservation of Name: - (Spice+ Part-A):-

  • iconTwo names can be proposed in order of preference;
  • iconThe name shall end with the word “Nidhi Limited”;

Application for Digital Signature Certificate (DSC): -

The proposed First Directors and Subscribers have to obtain Digital Signature Certificate (DSC);

Application for Incorporation of Company: -

Forms: - Spice+ Part B (INC-32) linked with Spice+ MOA (INC-33); Spice+ AOA (INC-34); Agile Pro-S (INC-35) and Form INC-9;

Checkpoints For Spice+ Part B: -

Purpose of Form: Application for: - Incorporation of Company; Allotment of DIN up to three applicants; PAN; TAN.

Details: -

Company Details: -

  • iconAuthorised Share Capital;
  • iconSubscribed Share Capital;
  • iconRegistered Office Address;
  • iconContact Details of proposed Company;
  • iconJurisdiction of Registrar of Companies based on the location of registered office of the Company.

Subscribers and Directors Details: -

  • iconNumber of Subscribers and First Directors having valid DIN and not having DIN;
  • iconPersonal details of First Directors and Subscribers;
  • iconNumber and amount of Shares subscribed by the Subscribers;
  • iconDesignation and Category of Proposed Directors.

PAN TAN Information: -

  • iconArea Code, Range Code, AO Type depending upon the location of registered office of the Company;
  • iconSource of Income;

Features & Benefits of Nidhi Company Registration Registration

  • iconNidhi Companies are mutual benefit societies, because their dealings are restricted only to the members;
  • iconMembership is limited only to individuals; Body Corporate cannot become its members;
  • iconThe principal source of funding is contribution from the members and loans are given to the members at relatively reasonable rates;
  • iconSuitable for fulfilling the Financial Requirements of lower and middle income groups;
  • iconDeposits mobilized by Nidhis are not much when compared to organized banking sector;
  • iconAs Nidhi Companies deal with Shareholder- members only, RBI has exempted the notified Nidhi’s from the core provisions of RBI Act.