In the realm of financial institutions, Nidhi Companies shine as unique entities fostering financial inclusion and community-driven growth.

Nidhi Company


In the realm of financial institutions, Nidhi Companies shine as unique entities fostering financial inclusion and community-driven growth. At Udyog Buddy, we understand the significance of these entities in empowering entrepreneurs and individuals, especially in underserved areas.
Nidhi Companies, governed by the Ministry of Corporate Affairs, Government of India, operate under the Nidhi Rules, 2014. These entities operate on the principles of mutual benefit, promoting savings and borrowing activities among their members. Unlike traditional banks, Nidhi Companies focus on serving their members’ financial needs while fostering a sense of community ownership and cooperation.

Benifits of Nidhi Companies

  1. Financial Inclusion:
Nidhi Companies bridge the gap between traditional banking services and underserved communities, providing access to savings and credit facilities, especially in rural and semi-urban areas.
  1. Simplified Operations:
With a straightforward operational structure, Nidhi Companies ensure quick decision-making processes, enabling efficient service delivery and member satisfaction.
  1. Member-Centric Approach:
Nidhi Companies focus on serving their members’ financial interests, fostering trust and loyalty within the community.
  1. Limitations of Nidhi Companies:
While Nidhi Companies offer numerous benefits, they have certain limitations:
  • Limited Banking Services:
Nidhi Companies cannot provide the full range of banking services offered by traditional banks, such as issuing credit cards or offering complex investment products.
  • Restricted Borrowing and Lending:
Nidhi Companies are primarily intended for small-scale savings and lending activities among their members, with limitations on the quantum of loans and deposits.


The following conditions are to be taken care by the Nidhi Company within one year of its registration. 
  • Nidhi Company is required to have minimum of 200 members within one year from its incorporation.
  • The net owned funds must be 10 lakh rupees or more.
  • Unencumbered deposits (free of debt of financial liability) must be 10% or higher of the outstanding deposits.
  • The ratio of the deposits cannot be over 1:20 times of its net owned funds.

Mandatory Compliances



Mandatory Compliances


Form NDH-1 
Return of Statutory Compliance.Within 90 from the close of financial year along with fees.
Form NDH-3 
Half Yearly ReturnWithin 30 days from the conclusion of each half year along with fees.
Form NDH-4 
Form for filing application for declaration as Nidhi Company and for up-dation of status by NidhiWithin 60 days after the expiry of 1 year from the date of its incorporation.
Form AOC-4
Return for financial statementsWithin 30 days of Annual General Meeting
Form MGT-7
Annual ReturnWithin 60 days of Annual General Meeting.
Form SH-7
Increase in authorized share capitalEvent based
Form PAS-3
Allotments of sharesEvent based
Form INC-20A
Commencement of BusinessWithin 180 days of incorporation
Form ADT-1
Appointment of First AuditorWithin 45 days of Incorporation
Form MGT-14
For special ResolutionsWithin 30 days

Documents Required for Registration

Scanned copies of:
  • Aadhar Card, PAN Card, Email Id & Mobile Number of all Partners
  • Identity Proof of all partners (Passport, Driving License, or Voter ID Card)
  • Address Proof of all partners (Bank Statement or Passbook, electricity bill, telephone bill, Aadhar Card, or any utility bill).
  • Registered Office Address Proof – Electricity Bill along with NOC from the owner (if rented), or any other ownership proof of proposed registered office.
  • Passport Size Photograph, mobile number, and email address.
Note : All documents shall be self-certified. There is no requirement for submitting physical documents. 


Nidhi Companies represent a beacon of hope for individuals and communities seeking accessible and community-driven financial services. At Udyog Buddy, we stand ready to guide you through the process of Nidhi Company registration, ensuring compliance, efficiency, and a seamless experience as you embark on your journey towards financial empowerment and inclusivity.
If you need help with the incorporation and compliances, we have got you covered. Team Udyog Buddy has been satisfying a lot of businesses. And now, we’ll help you get your registration process easier with our experts and professionals who are dedicated to providing a hassle-free and affordable registration experience.

Why Choose Udyog Buddy ?

Udyog Buddy is a team of experienced professionals, our end-to-end service model, combined with personalized support, makes the incorporation journey straightforward and stress-free. Additionally, our commitment to cost-effective solutions and time efficiency allows businesses to focus on growth and operations without unnecessary delays or financial strain. Choosing Udyog Buddy means partnering with a trusted expert dedicated to helping your business succeed from the very start.
Connect with us for any queries
Call/WhatsApp +919301789019 or E-mail at [email protected]
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Disclamer: The article provided here is solely for information purposes. This is prepared based on information provided on various forums and the same has been utilized only for information of the readers. The information presented in this article does not constitute legal or professional advice and should not be relied upon for such purposes or used as a substitute for legal advice. In case of necessity, consult with professionals.