It operates with the principle of mutual benefit and is highly regulated to ensure the safety of its members' funds. Nidhi Companies are restricted to only dealing with their members and offer benefits like simplified registration, exemption from RBI regulations, and ease of raising funds from the members.

Documents Required:

• PAN Card: PAN of all directors and shareholders.
• Identity Proof: Aadhaar card, passport, voter ID, or driving license of directors and shareholders.
• Address Proof: Recent utility bill, bank statement, or any government-issued address proof of directors and shareholders.
• Registered Office Address Proof: Rent agreement and NOC from the owner, or property ownership documents.
• Photographs: Passport-sized photographs of all directors.
• Digital Signature Certificate (DSC): Required for directors for signing electronic documents.
• Director Identification Number (DIN): DIN for all directors.
• Memorandum of Association (MOA) and Articles of Association (AOA): Draft documents specifically stating the objective of cultivating the habit of saving and lending among its members.