Start a Nidhi company with Legal Startup. A dedicated corporate expert checks the Nidhi Rules for your plan, handles incorporation and documents, and explains the member, capital and filing conditions you must meet afterwards.
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Nidhi company registration means incorporating a company under the Companies Act, 2013 that will take deposits from and lend to its members only, and then meeting the Nidhi Rules, 2014 to be declared a Nidhi company by the Central Government. It is a mutual benefit society for promoting thrift among members.
Last updated: October 2026. Nidhi Rules, forms, ratios and time limits can change, so we confirm the current position before filing.
A Nidhi company, also called a Nidhi Limited or mutual benefit company, is a company whose business is to receive deposits from and lend money to its own members for their mutual benefit. It is governed by Section 406 of the Companies Act, 2013 and the Nidhi Rules, 2014.
Common examples include community savings societies converted into companies and member-based loan groups. Because it handles public savings of a closed membership, the law imposes strict conditions on members, capital, deposits, loans and returns. A Nidhi company is mainly overseen by the Ministry of Corporate Affairs, not registered as an NBFC with the RBI.
Registration is done online through the MCA. For official forms and notifications, visit the MCA portal (mca.gov.in), the official website of the Ministry of Corporate Affairs, Government of India.
The Nidhi Rules set conditions both at incorporation and within the first year.
People who form and run the company.
Financial conditions under the rules.
How the company must present itself.
What it can and cannot do.
Not sure whether your plan fits the Nidhi Rules? Tell us about it and our experts will explain the rules free of charge.
Why communities and founders choose this structure for member-based savings and lending.
Members save and borrow within a trusted closed group, with the profit benefit staying in the community.
Shareholders are liable only up to the unpaid amount on their shares.
The company owns assets, signs contracts and can sue or be sued in its own name.
The company continues even if members or directors change.
It is exempt from RBI NBFC registration, but must follow the Nidhi Rules instead.
Incorporate from anywhere in India without visiting a Registry office.
From name check to NDH-4 declaration, here is how it works.
Timelines depend on name approval, document accuracy and Registry workload. Not to scale.
Proposed directors need a DSC to sign the e-forms. We guide you through issuance.
The name must end with "Nidhi Limited" and be available on the MCA register.
We draft Nidhi-specific objects and collect director, subscriber and registered office documents.
The integrated form covers name, DIN, PAN and TAN. MCA fee and stamp duty are paid at filing.
Enrol members and raise funds to reach the conditions within one year of incorporation.
Apply to be declared a Nidhi company once the conditions are met, and respond to any queries.
Keep these ready to avoid delays. Our expert will confirm the exact list for your case.
The total cost depends on the authorised capital, the state of your registered office and the number of directors and subscribers. It generally has three parts:
The MCA fee is linked to authorised capital. The schedule can change, so we confirm the current amount before filing.
State stamp duty applies to the MoA and AoA and varies by state and authorised capital.
Our fee depends on the case and the filings required. Call free for a custom quote before you pay anything.
NDH filings, GST registration and ongoing compliance are quoted separately. We share a clear, itemised quote before you begin. Get your free quote →
Choose the situation that matches your plan, or call free for a custom quote.
Founders starting a Nidhi company from scratch.
Registration and the declaration as a Nidhi company.
Converting a company to Nidhi, or handling NDH returns.
Our professional fee is quoted after a free call. Government fee and stamp duty are separate and depend on authorised capital and state. Not sure which option fits? Ask for a free consultation.
A quick view of how a Nidhi company differs from other common structures.
| Structure | Who it serves | Minimum members | Regulator | Compliance |
|---|---|---|---|---|
| Nidhi company | Members only | 7 members, 3 directors | MCA under the Nidhi Rules | Higher, with NDH returns |
| Private limited company | General business | 2 directors, 2 shareholders | MCA | Higher |
| NBFC | Public lending | As per company type | RBI and MCA | Highest |
| Cooperative society | Members | As per state law | Registrar of Cooperative Societies | Moderate |
Careful planning before filing prevents most delays and penalties.
Incorporation is the start. A Nidhi company also has rule-based compliance.
Open a current account in the company's name and deposit the subscribers' capital.
The Board appoints the first auditor and the appointment is filed with the ROC.
Reach at least 200 members and net owned funds of Rs 10 lakh.
File NDH-4 for the declaration, and NDH-1 and NDH-3 returns as the rules require.
File financial statements and annual return with the ROC, complete audit and income tax return, and complete director KYC.
Quick answers on Nidhi company registration in India.
A Nidhi company is a mutual benefit company that accepts deposits from and lends only to its own members. It is incorporated under the Companies Act, 2013 and must follow the Nidhi Rules, 2014, with the aim of encouraging thrift and savings among members.
Incorporate the company on the MCA portal with a name ending in Nidhi Limited, using SPICe+ with the MoA, AoA and documents. After incorporation, meet the membership and net owned funds conditions and apply for the declaration as a Nidhi company in the prescribed form (NDH-4).
At incorporation a Nidhi company needs at least 7 members and at least 3 directors, with at least one director resident in India. Within one year it must reach at least 200 members.
The Nidhi Rules require net owned funds of at least Rs 10 lakh within one year of incorporation. Net owned funds are paid-up capital and reserves less accumulated losses and intangible assets. We confirm the current requirement before filing.
NDH-4 is the application a company files with the Central Government to be declared a Nidhi company. Until the declaration is granted, the company should not carry on Nidhi activities beyond what the rules allow.
Each director and subscriber needs PAN, identity and address proof, a photograph, and email and mobile details. The company needs registered office proof such as a recent utility bill, plus a rent agreement and NOC from the owner if the premises are not owned.
A Nidhi company cannot accept deposits from or lend to non-members, and it cannot run chit funds, leasing, hire purchase or insurance business, or deal in securities. It also cannot issue preference shares or debentures. The full list is in the Nidhi Rules, which we explain before you start.
The cost has three parts: MCA government fees, state stamp duty on the MoA and AoA, and the professional fee. Government fee and stamp duty depend on the authorised capital and the state of the registered office, so we confirm them before filing.
Beyond annual ROC filings, audit and income tax return, a Nidhi company files periodic returns such as NDH-1 and NDH-3 under the Nidhi Rules, and must maintain prescribed ratios and unencumbered term deposits. Form names and time limits can change, so we give you a current compliance calendar.
A Nidhi company is mainly regulated by the Ministry of Corporate Affairs under the Companies Act, 2013 and the Nidhi Rules. It is exempt from registration as an NBFC with the RBI, but it must follow the rules on deposits, loans and interest.
Planning a Nidhi company? Speak to our corporate expert today – the consultation and the quote are free.
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