Nidhi Company is a non-banking financial entity incorporated under section 406 of Companies Act 2013 with the aim of performing the functions of borrowing and lending amongst members. It receives deposits from members and lends money to members only for their mutual benefit. Nidhi Companies are regulated by Companies Act of 2013, Nidhi Rules 2014, MCA and RBI in India.

• Incorporated as public company
• Easy borrowings from group members
• Better substitute of Co-operative Society
• Secured investment wither lower risk levels
• Minimum capital requirement is of Rs. 5 lakhs
• Nurtures the habit of savings amongst members
• Minimum requirement of 200 members within 1 year
• Minimum Net Owned funds of Rs 10 lakhs within 1 year
• Net Owned Fund to Deposit ratio should not exceed 1:20
• Not empowered to issue preference shares or debentures
• Minimum unencumbered deposits of 10% over outstanding deposits.
• Lower Compliance requirements than regular public limited companies

• Photograph of all shareholders and directors
• PAN Card copy of all shareholders and directors
• ID Proof copy of all shareholders and directors
• Address Proof copy of all shareholders and directors
• Active DIN and Digital Signature of directors
• Address Proof copy of registered office
• Memorandum of Association (MOA)
• Articles of Association (AOA)

• Collection of basic information and documents
• Obtaining DIN and Digital Signatures
• Attaining approval for Company Name
• Drafting MOA, AOA and required documents
• Obtaining Pan Card of firm for filing process
• Stamp and Notarization of necessary documents
• Preparation and filing of registration forms
• Procurement of certificate of incorporation