How to Register Nidhi Company in Rajasthan

The structure of a Nidhi Company registration in Rajasthan is that of a non-banking financial company. Nidhi Company registration enables a Nidhi to borrow money from its members and then lend it back to them. Nidhi Companies, which are founded in Rajasthan, are established to encourage members to save and deposit. This Company will always be necessary to be a public limited company, and its name should finish in ‘Nidhi Limited.’ If you are looking for a guide to answer “How to Register Nidhi Company in Rajasthan?” this blog will help you for understanding the same.

Table of Content 

What do you mean by Nidhi Company?

A Nidhi Company is a type of non-banking financing company in India, as defined under section 406 of the Companies Act, 2013. Also, Borrowing and lending money between members is its primary business. Permanent Funds, Benefit Funds, Mutual Benefit Funds, and Mutual Benefit Company are some other names for them. They are governed by The Ministry of Corporate Affairs, which has the authority to grant them directives regarding their deposit acceptance activities. However, this is in acknowledgment of the fact that these corporations solely deal with their shareholders. Nidhi Company was established with the goal of instilling a culture of thrift and saving among its members, as well as taking deposits and lending to them solely for their mutual benefit.

Rajasthan as an Effective Horizon for Investors

  • Despite the post-Covid19 pandemic industrial downturn, the Rajasthan government provides an impressive performance review that is attracting investors.
  • Rajasthan is endowed with rich mineral, land, energy, and skilled workforce, as well as various geographical advantages, superior industrial infrastructure, and effective administration, making it a suitable destination for investors from a wide range of industries.
  • The Invest Rajasthan 2022 Summit, which will take place in Jaipur, has been envisioned as a crucial turning point in the campaign.
  • Any state’s ability to attract investors is dependent on the creation of an enabling policy environment. The Rajasthan Industrial Development Policy 2019 and RIPS (Rajasthan Investment Promotion Scheme) 2019 have given a big boost to incoming investments, while sector-specific policies have also been implemented for key sectors in the state.
  • Rajasthan has risen to prominence as India’s new investment hotspot. The State Government has worked hard, consistently and resolutely, to meet all obstacles that have been thrown its way.

Advantages of Registering Nidhi Companies in Rajasthan

  • Access to Public Funds is Simple: Nidhi Company can accept deposits from its members via various accounts such as Savings Accounts, FD Accounts, and RD Accounts, which is less complicated than borrowing money from banks and other financial institutions.
  • Attracts Investors Easily: The state’s active investor outreach programme, Invest Rajasthan, includes domestic, national, and international investor meetings, embassy link programmes, and virtual seminars. The program’s goal is to gather investment proposals, process them in mission mode, and see them through to completion.
  • Members have limited liability: Administrators and shareholders have limited liabilities under the Companies Act of 2013. Likewise, Creditors, banks, and government agencies do not have the authority to seize the private property of any of the shareholders or administrators if the company experiences a loss or goes through a financial crisis.
  • Incorporation is simple and straightforward: Nidhi Company’s registration procedure is free of all kinds of complications. Initiating a Nidhi Company is a simple operation due to the lack of papers required from the outset to result in Nidhi Company Registration.
  • There aren’t many compliances: As Nidhi Companies are regulated by the Nidhi Rules, 2014, so, they have to follow fewer RBI-imposed recommendations.
  • Legally distinct entity: Nidhi Company can acquire property and incur debts in its name since it is a separate criminal entity from its shareholders, administrators, and promoters.

Minimum Requirements and Conditions for Registering Nidhi Company

  • Minimum of three directors and seven shareholders/members are necessary.
  • Members should able to make deposits.
  • Able to Lend Money for Its Members
  • Also, within one year of incorporation, the organisation must have a minimum of 200 members.
  • At the time of incorporation, a minimum capital of Rs. 5 lakh is mandatory; thereafter, a minimum capital of Rs. 10 lakh is necessary.

Documents needed to register a Nidhi Company in Rajasthan

  • Ownership documents/rent or lease agreement as proof of the registered business location
  • Certificate of No Objection (signed by the owner/landlord)
  • Proofs of identity
  • Members’ proofs of address
  • Members’ photos
  • Copies of the members’ PAN cards 
  • (DSC) Digital Signature
  • The directors’ DIN (Director Identification Number)
  • The company’s Memorandum of Association (MoA)
  • The company’s Articles of Association (AoA)

Procedure for Forming a Nidhi Company in Rajasthan

The method for obtaining an incorporation certificate for Nidhi Company in Rajasthan is outlined in the section below:

Step 1: Obtaining DIN and DSC

First, the Nidhi agency’s Directors must employ DIN (Director’s Identification Number) and DSC (Director’s Security Code) (Digital Signature Certificate). The MCA issues DINs, and the DSC is a virtual signature that is necessary for all e-submitting operations. However, if the Director already possesses DIN and DSC, you can skip this step.

Step 2: Name Approval

On your Nidhi Company, recommend three unique names to the MCA. Subsequently, the best of the three names may be a regular on your Company via the MCA. However, the proposed names should be unique and not similar to the names of other firms that have already been registered.

Step 3: MoA and AoA

These should emphasize the core purpose of forming a Nidhi agency as a charitable organization. The MoA and AoA must file the subscription statement with the ROC (Registrar of Companies).

Step 4: Certificate of Incorporation (CIN)

Forming a Nidhi agency and obtaining incorporation certificates might take anywhere from 15 to 25 days. Also, this document announces the formation of an agency and includes the Company identity number (CIN).

Step 5: Applying for PAN and TAN

The Nidhi Company in Rajasthan will thereafter be necessary to register for a PAN and TAN for the company. The PAN and TAN are usually obtained within 7 business days.

Step 6:  Bank Account

Subsequently, the next step is to register a bank account for the Nidhi Company, which will be used for any business transactions.

What is the maximum loan amount and interest rate that a Nidhi Company can offer to its members?

Deposit Amount Maximum Loan Grant
Deposits of less than 2 crores  Rs. 2,00,000
A deposit of less than 20 crores   Rs. 7,50,000
Deposit a sum of money greater than 20 crores but less than 50 crores. Rs. 12,00,000
The total deposit amount exceeds 50 crores. Rs. 15,00,000
  • However, if Nidhi has not been profitable for three consecutive financial years, no new loans exceeding 15% of the aforesaid amount can be made.
  • Members who have accepted a loan from Nidhi and likewise, not paid it back will not be able to take out new loans from Nidhi.
  • Furthermore, Nidhi Company loans are only available to Nidhi Company members.

Interest Rate

The rate of interest imposed on Nidhi loans shall not be more than seven and a half percent (7.5%) more than companies’ highest rate of interest offered on deposits.

That is – The gross margin that a Nidhi Company can achieve from its operations is 7.5 percent.


Nidhi Company was founded with the goal of instilling the practice of thrift, saving, and reserving funds among its members, as well as taking deposits and lending to its members, for their mutual benefit. Hence, registering a Nidhi Company in Rajasthan can avail many benefits in Infrastructural, Geographical, Investment, and many more.  So, it is now preferable to say that it is a good option for savings.

CS Madhavi Singh Rajawat is a commerce graduate from IIS University, Jaipur and an associate member of Institute of Company Secretaries of India. She is also an LLB aspirant. Her interest lies in the field of corporate and securities laws, general corporate advisory matters and FEMA matters and compliances, litigation services, and also in NCLT related services. She has proficiency in the drafting of documents

Copyright © 2022 Goyal Mangal & Company.