Nidhi means a company which has been incorporated with the objective of reservation of funds amongst its members and also for borrowing and lending deposits to its members only for their mutual benefit.It develops the habit of savings amongst its members and works on the principle of mutual benefit.Minimum of 3 directors required for the Nidhi company registration. Nidhi company is a non-banking financial company and economical to register.All the Nidhi company's incorporated shall have the last word as "Nidhi Limited" as part of its name.

Also, Nidhi company registration is the only form of company available to start the loan company in India without RBI approval.Nidhi Company can not work outside the state hence you need another registration for Nidhi company to expand in another state.

It offers:

• Minimum Documentation and formalities 
• Low rate of Interest
• No external involvement in management
• Useful for lower and middle class
• Safe and secure investments

DOCUMENTS REQUIRED FOR NIDHI COMPANY REGISTRATION:

Copy of Director's PAN Card

Copy of Rent agreement(If rented property)

Landlord NOC (Format will be provided)

Passport size photograph of Directors

Electricity/ Water bill (Business Place)

Copy of Aadhaar Card/ Voter identity card of directors

Copy of Property papers (If owned proper

MINIMUM REQUIREMENTS AFTER INCORPORATION

Minimum number of 200 Shareholders

Net owned Fund shall not be less than Rs. 10 Lacs

Unencumbered deposits of not less than 10% of the outstanding deposits

Net owned funds to deposits ratio should be more than 1:20

ADVANTAGES OF NIDHI COMPANY REGISTRATION

No Minimum Share Capital Requirement

Easy Transfer of Ownership

Tax Benefits

No need to use "Nidhi" or "Limited" title

No Stamp Duty

Clear Objectives for easy donations and loans

Easy to Manage

Exemptions and Privileges under Companies Act, 2013