As to incorporate a Nidhi Company it is to be registered as a Public Limited Company. So, to incorporate a Nidhi Company it is necessary to fulfill following criteria:

1. It should have at least 3 Directors.

2. It should have at least 7 Members.

3. The main objective to be written in the MOA should be to cultivate the habit of thrift and savings among its members. And it can accept deposits and lend money only to its members and shall work for the mutual benefit of its members.

Once the Nidhi Company is incorporated it must fulfill the following requirements:

1. It must have at least 200 members/shareholders.

2. Minimum Net Owned Fund should be Rs. 10 Lakhs.

3. Unencumbered term deposit must be at least 10% of the term deposit.

4. The ratio of Net Owned Fund to term deposit should not be less than 1:20.

The exclusive advantage which is offered by Nidhi Companies are:

1. It is a single office institution governed exclusively by its members with no involvement of the third party.

2. Provide loans at minimal interest rates and minimum documentation.

3. Secured investments are guaranteed by such companies.