"NIDHI" is a Hindi word which means Finance. Nidhi is a company which has been incorporated with the object of cultivating the habit of thrift and savings amongst its members, receiving deposits from, and lending to, its members only for their mutual benefit. They are mutual benefit societies as their dealings are restricted to its members and the membership is limited. It is one of the categories of Non-Banking Financial Company (NBFC) that does not require any Reserve Bank license. Nidhi Company is governed by Nidhi Rules, 2014 which is being laid down by the central government. All Nidhi Company’s incorporated shall have the last words 'Nidhi Limited' as part of its name.

• Nidhi Company is ideal entity to take deposit from and lend to a specific group of people.
• The Nidhi Company is very easy and cheap to register. Hence, this is the main reason as to why the Nidhi Company is so famous between the business communities.
• Nidhi Company is registered as a Public company and therefore, enjoys all the benefits like separate legal entity, easy management, uninterrupted existence, going concern.
• Nidhi Companies enjoy better credibility as compared to Mutual Benefit Organisations.
• Nidhi Companies can take loans at reasonable rate for various objectives.

• Before registration :
  Minimum 7 members
  Minimum 3 directors
  Minimum paid up capital should be Rs. 500000.
  No preference shares can be issued.
• Post registration :
  Every Nidhi must, within a period of 1 year from the commencement meet all the following criteria :
  Minimum 200 members
  It must ensure that net owned funds are Rs. 1000000 or more k mu’. m
  It must ensure that the ratio of net owned funds to deposit is not more than 1:20.
  It must have unencumbered term deposits of not less than 10% of the outstanding deposits.

• Copy of PAN of Directors and shareholders..
• Copy of ID proof of Directors and shareholders ( Voter ID, AADHAR, Driving License, Passport)
• Copy of address proof of Directors and Shareholders ( bank statement/ electricity bill/mobile bill/telephone bill any one which should be recent and not older than 2 months)
• Passport size photograph
• Proof of registered office:
  If property is owned: utility bill and ownership document
  If property is rented: utility bill, rent agreement and NOC from landlord for use of premise.
  NOTE: Electricity bill, Gas bill, Telephone Bill, Water Bill are served as utility bill for registered office.
• Digital signature(DSC)
• Director Identification Number (DIN) of the directors.
• Name approval, preparation of MOA and AOA acc. to Nidhi objects and other documents
• Apply for incorporation.