Incorporating a Nidhi company in India is an easy process, you just need the right guidance and you will sail the boat effortlessly. Today in this article we will brief you about how to incorporate Nidhi Company in India.
What is a Nidhi Company?
A Nidhi company is a kind of Non-Banking Financial Company or what we called an NBFC. The Company is formed to borrow and lend money to its members. It generates the habit of saving among its members and works on the philosophy of mutual benefits. Earlier, these companies were operating in the southern part of the country only but now they have their root in the northern part also.
It is registered as a public company and should have “Nidhi limited” as the last word mentioning.


How does Nidhi Company work?
Nidhi Company is prohibited to deal in Chit funds, hire purchase finance, leasing finance, insurance, securities business. They are not allowed to accept deposits or lend funds to any person except members. Minimum 7 members are required to incorporate Nidhi Company out of which three members must be the directors of the company.
Minimum 5 lakhs is required as equity share capital to incorporate a company where they cannot issue preference shares.
Documents required for incorporating Nidhi Company in India
· Rent Agreement or Lease Agreement
· NOC ( No Objection Certificate )
· Identity Proof of the Members
· Address Proof of the Members
· Photos of the Members
· Photocopy of PAN Cards of the members
· Digital Signature
· Director Identification Number
· Memorandum of Association of the company
· The article of Association of the Company
How to Register Nidhi company in India
Registering a Nidhi Company in India is as easy as a piece of cake; you just need to submit your documents to us and all your work will be done simultaneously. The following is the detailed procedure for registration of Nidhi Company in India.
1. Apply for DSC and DIN
DSC stands for Digital Signature and DIN stands for Director Identification Number. The applicant needs to apply for DSC and DIN. DSC is an electronic signature required at the time of filing government forms online.
2. Application for Name Approval
You need to file the RUN form for the name approval on the MCA portal. The name should be unique and matches with the company’s activity.
3. MOA & AOA Submission
Memorandum of Association i.e. INC-9 & Article and Association are filed at MCA Portal with INC- 32 and the subscription statement.
4. Application for PAN, TAN & Bank Account
You also need to apply for Permanent Account Number, Tax Deduction, and Collection Account Number. PAN & TAN will be issued in 7 working days. After which you can submit the incorporation certificate.
5. Incorporation Certificate
The Nidhi Company takes around 15–25 days to get incorporated. Once MCA is satisfied with all your submitted forms and documents it will issue incorporation of the certificate as a proof that the company has been created and also includes CIN number.