Here is the rundown of incorporation requirements that you need to:

a) Nidhi Company ought to have at least two hundred members to abstain from being in default with Rule 5 of Nidhi Rules, 2014. This one of the Incorporation Requirements of Nidhi Company.

b) Net Owned Funds (capital invested) ought not to be less than ten lakh.

c) The ratio of Net owned funds to deposits ought not to be more than 1:20. As it were, whether you have added up to Net Owned Funds of INR 10 lakh then Nidhi Company can acknowledge maximum deposits up to INR 2 crore.

Imagine a scenario in which a Nidhi Company can’t reach the member size of 200 inside a year. All things considered, Company should apply for the extension with the Regional Director of the company in the Form NDH –

The Business Restriction: A Nidhi Company can’t do the following types of business as they are entirely denied by the rules.

a) The businesses such as hire purchases finance, chit fund, leasing finance, or insurance which has been issued by a corporate body.

b) Further, it should neither do carry any other businesses other than the specific business of borrowing or lending in its own name only. General Restrictions: Apart from the business restrictions, there are some broad restrictions are likewise there which are as follows:

  1.  Nidhi Company should not issue preference shares, debentures, or whatever other obligation instruments by any name or in any frame whatsoever.
  2. Nidhi Company should not open the current account with its members. If you don’t mind note, there is a restriction on the current account that implies you can, in any case, the open saving account with the members.
  3.  A Nidhi Company can’t issue or cause to be issued any advertisement in any frame for requesting deposit:
  4.  Nidhi Company can’t pay any brokerage or motivator for mobilizing deposits from members or for the deployment of funds or for granting loans.

Minimum Share Incorporation Requirements: Nidhi Company Registration needs to distribute at least 10 equity shares or shares equivalent to one hundred rupees.

Notwithstanding, savings account holders and a repeating deposit account holder might hold no less than one equity share of rupees ten.

Branches of Nidhi Company: A Nidhi Company can open 3 branches in its district just if it has earned profits after tax continuously in the first three monetary years. For an extra branch, Nidhi will be first applied for an endorsement from the Regional Director.

The rate of Interest: The rate important to be charged on any credit given by a Nidhi should not surpass seven and a half for every penny over the most astounding rate of intrigue offered on deposits by Nidhi.


There are as yet many focuses on Nidhi Rules, 2014 which will influence your business. Consequently, would dependably recommend you consult with a professional before you continue for Nidhi Company Incorporation Requirements.

For more information regarding the registration process and documents, you can visit Company registration online.

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