A Unit of Truex Business Consultants Pvt Ltd.

NGO WORLDS is a leading network of NGO registration professionals in India

NGO WORLDS proud on its extensive networking and connections throughout the corporate world And senior government functionaries work towards the achievement of easy and simple ways to serve your demands, making every step in the process or procedure smooth and uncomplicated.

Request A Callback
About Nidhi Company

About Nidhi Company

Nidhi Company Registration is a procedure through which the incorporation of type of NBFC called Nidhi can be made possible. Another name of this NBFC is the Mutual Benefit Finance Company. Furthermore, this incorporation takes place under the provisions of Companies Act, 2013. Nidhi companies are allowed to borrow from its members and lend to its members. It is a type of NBFC, and for incorporating it, the applicant company is needed to be registered with the MCA. It is registered as a public company and should have “Nidhi Limited” as the last words of its name. The activities of a Nidhi Company does fall under the purview of Reserve Bank of India, as it is similar to a NBFC. However, as Nidhi Companies ONLY deal with its shareholder-members money, RBI has exempted Nidhi Companies from the core provisions of the RBI and other regulations applicable to a NBFC.


Easy Availability Of Funds

Nidhi Company is the most secure and most accessible way of accepting deposits from the end of the general public. Only the requirement is that they should be the registered members.

No RBI Requirement

Nidhi Company do not require RBI registration to do loan business in India.

Lower rate of Interest

Rate of interest of borrowing for members is less as compared to the market rate.

Limited Liability

Any member is liable to only the amount he has invested in the company.Easy Ownership Transfer Tax Benefit.

Easy Access of Public fund

The members of the Nidhi Company can take a loan at a cheaper rate from its own Company than borrowing from banks and other NBFCs. Moreover, the process of taking the loan and customized services are much more convenient and faster.

Better option for Savings

One of the main goals of Nidhi Company incorporation is to encourage the habit of saving among the members of the Company. This is how it achieves its other goal of being mutually beneficial. The Nidhi Companies lend and borrow money to and from its

Point To Be Considered

Below few points (given in Rule-6 of the Nidhi Rules of 2014) are noteworthy in connection with the working of Nidhi Companies in India:

  • It cannot carry any of the following transactions: leasing finance, insurance, chit fund, hire purchase finance, or acquisition of securities issued by any corporation.
  • A Nidhi Company is not entitled to issue preference shares, debentures, or any other debt instruments in any form.
  • It cannot accept deposits from or give loans to any external individual or corporation.
  • You can start Nidhi Company in about Rs. 25,000 only
  • It is not allowed to perform vehicle finance business & microfinance business in India.
  • Within 12 months of registration, a minimum of 200 members has to be added.
  • A maximum interest rate of 20% p.a. can be charged, by following the reducing balance method.
  • A Nidhi Company can only give loans against security. These securities may be Gold, Property, and FD & LIC.
  • Unencumbered deposits (Deposits not offered as securities for any purpose) should be more than 10 % of outstanding deposits.
  • Filing of Annual Accounts, Audit, and Tax returns are compulsory.

Details Required For Registration

Details Required For Registration

Documents required for Nidhi Company Registration

  • PAN card of all directors.
  • Passport size photograph.
  • Aadhar card/ voter’s identity card of directors.
  • If Property is rented then copy of rent agreement.
  • Electricity/ water bill.
  • If owned property then copies of property papers.
  • NOC from the landlord in case utility bill is on another person’s name.


Step-1 : Choose an Appropriate Name for the Company

It is not possible to register a name that is too similar to an existing company name or trademark. When it comes to name of company, a degree of freedom is given by the companies’ act 2013, however, there are certain rules and restrictions that are

Step-2 : Applying for DSC

The directors to get a Class 2 DSC (Digital Signature Certificate) to sign electronic documents after which DIN (Director Identification Number) can be applied for.

Step-3 : Execution of company registration documents

After the company name approval, the company incorporation documents such as memorandum of association (e-MOA) and articles of association (e-AOA) have to be executed by the promoters in the prescribed format along with documents i.e. consent to act

Step-4 : Company incorporation E-form submission

For successful completion of process, it is required to submit the e-forms with the MCA on the website for the purpose of approval.

Step-5 : Get Certificate of Incorporation

On the approval of E-Form (SPICe INC-32), the Certificate of Incorporation is provided via E-mail.

What Our Clients Say

Our mission is to provide one-click access to individuals and businesses for all their legal & professional needs. Our vision and mission is to help those who help others for the development of INDIA.

Our Stories & Latest News

We at NGO WORLDS Working an extensive Network and connections in the corporate world

Pradhan Mantri Garib Kalyan Yojana

Our Prime Minister announced the Pradhan Mantri Garib Kalyan Yojana, which had the value of 2.76 lakh crores under which there were provisions for free cooking gas for 80 million families for months, 800 million people to get free food grain, and the poor and the needy.

By Seema Aggarwal - 2021-2022

Key Highlights of 39th GST Council Meeting
Key Highlights of 39th GST Council Meeting

39th GST Council meeting was held on 14 March 2020, Saturday. The meeting was chaired by Hon’ble Union Finance Minister Nirmala Sitharaman and was conducted in Vigyan Bhawan, New Delhi.

By Shubham Chauhan - 14 March 2020

The Ministry of Finance, Nirmala Sitharaman parsented Union Budget

The Prime Minister headed Government has made its resources available for the most deprived sections of our society which includes the poorest of the poor, the Dalits, Tribals, the elderly, the migrant workers, and our children.

By Kandarp Vanita - 2021-2022