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What is a Nidhi Company?


A Nidhi companybelongs to the category of non-banking finance firms.Recognized under Section 406 of the Companies Act, 2013, it is governed by the centralgovernment. The basic business of such a company is to facilitate lending money between the core members of the company.Examples of a Nidhi Company are permanent funds, mutual benefit funds, a mutual benefit company and benefit funds.The core idea behind creating a Nidhi Company is to receive funds (deposits) from members or lend to them, for the mutual benefit of both parties. All lending and borrowing must comply with rules laid downinChapter XXIV of Company Rules, 2014.

Easy Management


The Board of Management of a Nidhi company can be easily changed by filing simple forms with the Registrar of Companies. The Board of Management of a Nidhi company controls the activities of the Nidhi company.


Going Conecrn


A Nidhi company being a juristic person, can acquire, own, enjoy and alienate, property in its own name. No member can make any claim upon the property of the Nidhi company as long as it is a going concern.

Uninterrupted Existance


A Nidhi company has 'perpetual succession', that is continued or uninterrupted existence until it is legally dissolved. A Nidhi company, being a separate legal person, is unaffected by the death or other departure of any member but continues to be in existence irrespective of the changes in membership.

Better Credibility


A Nidhi company enjoys better credibility when compared to Mutual Benefit Organizations. Nidhi companies are registered and monitored by the Central Government. Mutual Benefits Organization are on the other hand governed and monitored by State Governments.

Documents Required for Nidhi Company Registration



  1. Self-attested copy of PAN Card
  2. Self-attested copy of Driver’s License/ Voter ID/ Aadhaar Card/Passport
  3. Self-attested copy of Bank Statement/ Telephone Bill/Mobile Bill/ Electricity Bill
  4. Passport-size Photograph
  5. Specimen Signature Certificate

Reasons to Register a Nidhi Company Registration