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Mutual-benefit company framework

Nidhi Company Registration in India

Structured assistance for public company incorporation, member planning, Nidhi Rules readiness and the NDH-4 declaration pathway.

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7+ subscribers3+ directors200+ declaration-stage membersRs 20L prescribed NOF
Section 406 framework

What is a Nidhi Company?

A Nidhi is a public company built around mutual benefit. Its core objects are cultivating thrift and savings among members, receiving deposits from members and lending to members under the Companies Act, 2013 and Nidhi Rules.

It is not an ordinary finance company and it cannot market deposit or loan products to the general public. Strong member records, conservative financial controls and declaration readiness matter from the incorporation stage.

Compliance first: A Certificate of Incorporation does not by itself represent Central Government declaration as a Nidhi.

Formation and declaration readiness

Nidhi Company Registration Requirements

Promoters should plan both the public company incorporation and the later Nidhi declaration requirements.

Seven Subscribers

At least seven persons subscribe to the public company memorandum.

Three Directors

Plan at least three eligible directors and the resident-director condition.

Nidhi Limited Name

Use a distinctive compliant name ending with Nidhi Limited.

Restricted Objects

Objects focus on thrift, savings, member deposits and member lending.

200 Members

The amended declaration pathway requires at least 200 members.

Rs 20 Lakh NOF

Net Owned Funds of at least Rs 20 lakh form part of declaration readiness.

120-day regulatory roadmap

NDH-4 Declaration After Nidhi Company Incorporation

The 2022 amendment created a time-bound declaration route for a newly incorporated public company seeking to operate as a Nidhi.

01

Incorporate the public company

Use compliant Nidhi objects, name, governance and capital records.

02

Reach prescribed readiness

Establish at least 200 members and Rs 20 lakh Net Owned Funds.

03

Verify fit and proper status

Review promoter and director declarations against current criteria.

04

File Form NDH-4

Apply within 120 days with consistent records and supporting evidence.

Do not treat the incorporation certificate as deposit-taking approval.

Acceptance of deposits and grant of loans as a Nidhi must follow the current declaration, membership, prudential and operational rules.

Operational boundaries

What a Nidhi Company Cannot Do

Deal with non-members

Deposits and lending belong within the qualifying member base.

Advertise public deposits

A Nidhi cannot solicit deposits from the general public as an open finance business.

Run prohibited finance activities

Chit fund, hire-purchase finance, leasing finance and insurance are restricted.

Acquire body-corporate securities

Investment in securities of another body corporate is restricted under the rules.

Issue preference shares or debt

Preference shares, debentures and debt instruments are not the Nidhi funding model.

Open current accounts for members

Member accounts and products must remain within the forms permitted by current rules.

Document checklist

Documents Required for Nidhi Company Registration

Subscribers and Directors

  • PAN and identity proof
  • Recent residential address proof
  • Photograph and contact details
  • Consent, eligibility and DSC records

Registered Office

  • Recent utility bill
  • Ownership or occupancy evidence
  • Owner no-objection certificate
  • Complete address and jurisdiction

Proposed Company

  • Name options ending Nidhi Limited
  • Restricted mutual-benefit objects
  • Capital and subscription plan
  • MOA and AOA instructions

NDH-4 Readiness

  • Verified member register
  • Net Owned Funds evidence
  • Promoter/director declarations
  • Auditable financial and governance records
End-to-end workflow

Nidhi Company Registration Process

01

Structure review

Confirm the public company foundation, seven subscribers, three directors, capital, office and restricted objects.

02

DSC and name

Arrange digital signatures and evaluate a distinctive name ending with Nidhi Limited.

03

Incorporation filing

Prepare SPICe+, e-MOA, e-AOA and linked documents for Registrar review.

04

Member base

After incorporation, build the required member base through genuine, documented membership.

05

NOF readiness

Establish the prescribed Net Owned Funds and verify the promoter and director fit-and-proper position.

06

NDH-4 application

Apply for declaration as a Nidhi in Form NDH-4 within the applicable period.

07

Controlled operations

Begin regulated member deposit and lending activity only after satisfying the current declaration framework.

Continuing governance

Nidhi Company Compliance After Registration

Compliance combines ordinary public company obligations with Nidhi-specific member, financial, deposit and lending controls.

NDH-1

Statutory compliance return, where applicable, based on prescribed conditions and timelines.

NDH-3

Half-yearly return and certification under the current Nidhi framework.

NDH-4

Application for declaration or status-related filing under the applicable rules.

AOC-4 and MGT-7

Financial statements and annual return, subject to current form applicability.

Audit and tax

Books, statutory audit, income-tax and applicable TDS or GST work.

Member controls

Registers, deposits, loans, security, interest and prudential records.

Online pan-India assistance

Nidhi Company Registration Near Me Across India

Founders searching for Nidhi Company registration near me can coordinate incorporation and declaration documentation online. Registered-office evidence, stamp duty and local facts still affect the filing.

Nationwide coverage

Nidhi Registration in 28 States

28 States
Andhra PradeshArunachal PradeshAssamBiharChhattisgarhGoaGujaratHaryanaHimachal PradeshJharkhandKarnatakaKeralaMadhya PradeshMaharashtraManipurMeghalayaMizoramNagalandOdishaPunjabRajasthanSikkimTamil NaduTelanganaTripuraUttar PradeshUttarakhandWest Bengal
Union Territories

Coverage Across 8 UTs

8 UTs
Andaman and Nicobar IslandsChandigarhDadra and Nagar Haveli and Daman and DiuDelhiJammu and KashmirLadakhLakshadweepPuducherry

Nationwide assistance does not represent a branch office in every state. Approvals remain with the competent authorities.

Nidhi knowledge centre

Nidhi Company Registration Blog

Detailed reading on formation, declaration, member operations and continuing compliance.

Clear regulatory answers

Nidhi Company Registration FAQs

Answers for promoters comparing Nidhi registration, NDH-4 declaration and member-based operations.

Official referencesCompanies Act, Section 406 MCA Nidhi Rules

01What is a Nidhi Company?

A Nidhi Company is a public company formed to cultivate thrift and savings among its members and to receive deposits from and lend to its members for their mutual benefit, subject to Section 406 and the Nidhi Rules.

02How many people are required to form it?

A public company is formed with at least seven subscribers and ordinarily requires at least three directors. The declaration-stage membership condition is separate and should be planned from the beginning.

03Is incorporation enough to accept deposits?

No. Incorporation and declaration as a Nidhi are distinct. A newly incorporated company should not raise deposits or provide loans as a Nidhi before it satisfies the current declaration requirements and applicable restrictions.

04What is the NDH-4 timeline?

Under the amended framework, a public company seeking Nidhi status applies in Form NDH-4 within 120 days of incorporation after meeting prescribed conditions, including at least 200 members and Net Owned Funds of at least Rs 20 lakh. Current law and facts should be checked before filing.

05Can a Nidhi Company lend to the public?

No. Its deposit and lending model is member-focused. Public deposit solicitation and lending to non-members are outside the permitted mutual-benefit framework.

06Can Nidhi Company registration be completed online?

The company incorporation and relevant MCA filings are electronic, but promoters still need valid documents, digital signatures, lawful objects, capital and member planning, and regulatory approval.

07How much does registration cost?

Cost depends on capital, state stamp duty, number of DSCs, subscribers, professional scope and NDH-4 readiness work. A written quotation should distinguish incorporation from declaration and ongoing compliance.

08What compliance applies after registration?

Applicable work can include statutory books, audit, financial statements, annual return, income tax, NDH forms, deposit and loan records, prudential conditions and event-based ROC filings.

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