Earendil | Nidhi Company Registration

Start saving habit among the community with Nidhi company

Under Sec 406 of The Companies Act, 2013, it is a Non-Banking Finance Company (NBFC) in which the members lend and borrow among themselves only. The fund is raised only from the members who own the shares of the Company.Nidhi Company promotes and encourages members to save. Otherwise called a mutual benefit company, a Nidhi Company complies with the norms of mutual benefits regulated by Ministry of Corporate Affairs (MCA). Nidhi Company is subject to RBI directions as with any NBFC. It is exempted from some of the regulations as it deals only with the shareholders’ money.

Why Register with Earendil

  • Our Chartered Accountant will help in ease of business by guiding you through key registrations for your enterprise. Your Earendil Chartered Accountant will be your single point of contact for registration assistance and for all other services that we offer.
  • Our motto is “You only do what you do best; to us, leave the rest”. We assure that once we start our relationship, you wouldn’t have to think about the areas which we handle.
  • We want you not just to Start your Business, but also to Run Your Business. With us, your first month of compliances such as TDS and GST, if applicable, are free to ease you into your business.


  • As per Rule 6 of Nidhi Rules, 2014, a Nidhi Company has to comply with the following regulations
  • It is a trust-based company that runs on mutuality. Hence, it should not engage in chit fund business, lease finance and hire purchase business or invest in securities of companies.
  • It should not issue preference shares.
  • It should not open Current Account with its members.
  • The business of a Nidhi Company is restricted to the state in which it is located.
  • It should not borrow from, or lend money to, non-members.
  • It should not involve in fundraising by pledging assets.
  • It should not enter into any partnership arrangement in its borrowing or lending activities.
  • It should not advertise deposit schemes.
  • It should not hire people for accepting deposits from members and provide brokerages and incentives.


  • The number of shareholders should be not less than 200
  • The company must possess NOF (Net Owned Funds) of Rs. 10 lakh or more.
  • The company should have unencumbered term deposits of not less than 10% of the outstanding deposits.
  • The NOF to deposits ratio shouldn’t be more than 1:20.
  • If the Nidhi Company is not able to comply with the above requirements in one year from the incorporation, it can apply for an extension of time by filing Form NDH-2 with the Regional Director within 30 days from the end of the first financial year.


The Nidhi Company registration process flow provided above is for your reference. With our services, you need not worry about it. Just submit the required documents and we will take care of the rest.

Your Earendil Chartered Accountant will guide you through the process and will be your single point of contact for registration assistance and for all other services that we offer.

Obtaining digital signature and Director Identification Number(DIN) for the Director/Shareholder is the foremost step of the incorporation process. Digital Signature for one director is free with our services.

Application is submitted to MCA for Nidhi Company name reservation. The name should always end with nidhi.ltd behind it.

Post name approval, MoA and AoA are submitted to MCA. Also proof of identity, address, and Registered Office Address are to be submitted along with other documents like consent of the nominee should be submitted.

We will take out PAN, TAN, GST and other registrations as required post-incorporation.