Nidhi Company Registration is a legal process under the Companies Act, 2013, allowing a company to operate as a non-banking financial entity (NBFC) focused on borrowing and lending money among its members. These companies promote savings and thrift among members and are regulated by the Ministry of Corporate Affairs (MCA), not the RBI.

Key Features:

  • Only members can deposit and borrow.
  • Minimum 200 members required within 1 year of incorporation.
  • Must have “Nidhi Limited” in its name.
  • Cannot deal with outsiders or offer chit funds, leasing, or insurance.

Conclusion:
Nidhi Company is ideal for those who want to start a simple financial business with low capital and minimal RBI compliance. It fosters community-based financial support through member-based savings and loans.