The word â€˜Nidhiâ€™ is taken from the Hindi language that verbally means finance. Nidhi Company in India is incorporated with an aim to develop the habit of providence and reserve funds amongst its former members. In a Nidhi company, funds are collected and loans are provided between the company members for their mutual benefits. In this article, we will discuss about the number of directors required in Nidhi Company along with the documents required for Nidhi Company Registration in India. A Nidhi Company is known to belong to a Non-Banking Financial Company (NBFC) that is registered under the section 406 of Companies Act, 2013. They are also recognized by the names like Benefit Funds, Permanent Funds and Mutual benefits Company. Their core principle is to borrow and lend money amongst its companyâ€™s members. These companies are governed and regulated by the Ministry of Corporate Affairs and are free from the Reserve Bank of India approvals for the registration process.