What are the requirements to register a Nidhi company?

It must be incorporated as a public company with at least seven members and three directors, paid-up equity capital of at least ₹10 lakh and a name ending in "Nidhi Limited". Within 120 days of incorporation it needs at least 200 members and net owned funds of ₹20 lakh, and must apply in NDH-4 for declaration. Promoters and directors must meet the fit-and-proper criteria.

Can a Nidhi company accept deposits immediately after incorporation?

No. Since the Nidhi (Amendment) Rules, 2022, a company incorporated as a Nidhi can commence business only after the Central Government's declaration on its NDH-4 application. Until then it should not raise deposits from or give loans to members. Planning the 200 members and ₹20 lakh net owned funds early avoids missing the 120-day window.

What is the minimum capital for a Nidhi company?

The Nidhi Rules require paid-up equity share capital of at least ₹10 lakh, raised from ₹5 lakh by the 2022 amendment, and net owned funds of ₹20 lakh within 120 days of incorporation. Equity shares must have a face value of at least ₹10 and be fully paid up. A Nidhi cannot issue preference shares.

How much does Nidhi company registration cost?

CorporateWalla's professional fee for incorporating the Nidhi starts at ₹8,499 plus GST. Government costs are separate: SPICe+ fee is nil up to ₹15 lakh authorised capital, name reservation is ₹1,000, and stamp duty depends on the state. NDH-4 preparation and post-incorporation compliance are quoted separately because the work depends on how members are onboarded.

How much loan can a Nidhi give to a member?

Rule 15 links the limit to the Nidhi's total deposits from members: up to ₹2 lakh where deposits are below ₹2 crore, ₹7.5 lakh from ₹2 crore to below ₹20 crore, ₹12 lakh from ₹20 crore to below ₹50 crore, and ₹15 lakh above ₹50 crore. Loans can be given only to members.

What activities are not allowed for a Nidhi company?

A Nidhi cannot carry on chit fund, hire purchase, leasing or insurance business, issue preference shares, debentures or other debt instruments, accept deposits from or lend to non-members or body corporates, or pay brokerage for mobilising deposits or granting loans. Breaching these rules can attract penalties and loss of Nidhi status.

What are the annual compliances of a Nidhi company?

Besides ROC filings like AOC-4 and MGT-7 and the statutory audit, a Nidhi files NDH-1, a return of statutory compliances, within 90 days of the close of the first financial year (and the second where applicable), and NDH-3, a half-yearly return, within 30 days of the end of each half-year. Both are certified by a practising CA, CS or CMA.

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Nidhi Company Registration in India

Q: What is NDH-4 and when must it be filed?

NDH-4 is the application to the Central Government for declaration as a Nidhi. A company incorporated after the 2022 amendment must file it within 120 days of incorporation, with fit-and-proper declarations of all promoters and directors. The Central Government must decide within 45 days; if it does not, the application is deemed approved. The approval is then filed with the Registrar along with INC-20A.

A Nidhi company is a public limited company formed under Section 406 of the Companies Act, 2013 to accept deposits from and lend only to its members. Under the Nidhi Rules, 2014 as amended in 2022, it needs paid-up equity capital of at least ₹10 lakh, a name ending in "Nidhi Limited" and, within 120 days of incorporation, at least 200 members and net owned funds of ₹20 lakh, when it must apply in Form NDH-4 for declaration as a Nidhi. It cannot accept deposits until the Central Government's declaration is received.

Incorporation in 15–20 business days; NDH-4 within 120 days (indicative) delivery

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Who Should Register a Nidhi Company?

A Nidhi suits a community or group that wants to pool savings and lend to its own members, such as an association of traders, employees or residents, and can bring in 200 members and ₹20 lakh of owned funds within 120 days. It does not suit a business that wants to lend to the public or to companies.

Your plan	Nidhi company?
Accept savings from and lend to members only	Yes
Lend to the general public or businesses	No, an NBFC registration with the RBI is needed
Run chit funds, leasing, hire purchase or insurance	No, prohibited by Rule 6
Charitable or non-profit work	No, consider a Section 8 company
Cannot reach 200 members within 120 days	Not yet; plan member onboarding first

Nidhi Rules at a Glance (as amended in 2022)

Rule	Requirement
Form of company	Public company limited by shares, name ending in "Nidhi Limited"
Minimum paid-up equity capital	₹10 lakh (raised from ₹5 lakh in 2022)
Within 120 days of incorporation	At least 200 members and net owned funds of ₹20 lakh, and NDH-4 filed
Declaration	Central Government decides within 45 days; deemed approved if no decision
Start of business	Only after declaration; approval filed with INC-20A
Fit and proper	Promoters and directors must meet the criteria; a person cannot be a director of five or more Nidhis or a promoter of three or more
Shares	Face value at least ₹10, fully paid; each depositor holds at least 10 shares or ₹100 worth
Ratios	Net owned funds to deposits not more than 1:20; at least 10% of outstanding deposits in unencumbered term deposits
Deposits	Fixed deposits 6 to 60 months; recurring deposits 12 to 60 months
Preference shares, debentures	Not allowed

If NDH-4 is not filed within 120 days, the company cannot file SH-7 (alteration of share capital) or PAS-3 (return of allotment) with the Registrar.

Step-by-Step Nidhi Registration With Forms

1. DSCs for directors and subscribers.
2. SPICe+ Part A: reserve the name ending in "Nidhi Limited" (₹1,000).
3. SPICe+ Part B with MOA (Nidhi objects) and AOA, AGILE-PRO-S for bank account and registrations, and stamp duty.
4. Certificate of Incorporation with CIN, PAN and TAN.
5. Capital and members: receive at least ₹10 lakh paid-up equity, then allot shares to reach 200 members; file PAS-3 for allotments.
6. NDH-4 within 120 days of incorporation, with fit-and-proper declarations and proof of members and net owned funds.
7. Declaration: decision within 45 days; file the approval with INC-20A.
8. Ongoing: NDH-1 within 90 days of the first financial year end, NDH-3 half-yearly within 30 days, plus AOC-4, MGT-7 and audit.

Nidhi Registration Fee and Timeline

Item	Amount / time
CorporateWalla professional fee (incorporation)	From ₹8,499 + GST
NDH-4 and member onboarding support	Custom quote
SPICe+ filing fee	Nil up to ₹15 lakh authorised capital
Name reservation	₹1,000
Stamp duty on MOA and AOA	By state
Incorporation	15–20 business days (indicative)
Reach 200 members and ₹20 lakh NOF, file NDH-4	Within 120 days of incorporation
Central Government decision on NDH-4	Within 45 days of the application

Common Reasons NDH-4 Fails

Fewer than 200 members on the 120th day, or members added only on paper
Net owned funds below ₹20 lakh because accumulated losses or intangible assets were not deducted
A promoter or director who is already a director of five Nidhis or promoter of three
Pending criminal complaint, wilful-default tag or regulatory debarment against a director
Deposits taken or loans given before the declaration
MOA objects that go beyond member-only deposits and lending
NDH-4 filed after the 120-day window

Worked Example and Current Position (October 2026)

A traders' association in Kolkata incorporates XYZ Nidhi Limited on 1 November 2026 with seven subscribers, three directors and ₹10 lakh paid-up equity. Over the next three months it allots ₹10 shares to 195 more traders and raises further capital so net owned funds reach ₹20 lakh. NDH-4 must be filed by 1 March 2027 (120 days). If the Central Government does not decide within 45 days of filing, the application is deemed approved, after which the company files INC-20A and starts accepting deposits.

With ₹20 lakh of net owned funds, the 1:20 ratio caps deposits at ₹4 crore, and while deposits stay below ₹2 crore, a single member's loan is capped at ₹2 lakh.

Illustrative scenario. As of October 2026 the 2022 amendments to the Nidhi Rules apply to every new Nidhi: prior declaration is required before deposits are accepted.

Transparent 3-tier pricing

Pick the speed and depth that matches your need. Same quality, same CA team — only the timeline changes.

Starter

₹8,499

Timeline: 15–20 business days

Eligibility and fit-and-proper review of promoters and directors

Name reservation ending in "Nidhi Limited"

MOA with Nidhi objects and AOA drafting

SPICe+ incorporation as a public company (3 directors, 7 members)

PAN, TAN and Certificate of Incorporation

NDH-4 application for declaration

Standard

Custom quote

Timeline: Within 120 days of incorporation

Everything in Starter

Member register and share allotment for 200 members

Net owned funds working and auditor coordination

NDH-4 with fit-and-proper declarations, filed within 120 days

INC-20A with the declaration approval

Pro

Custom quote

Timeline: Annual

Everything in Standard

NDH-1 return of statutory compliances

Half-yearly NDH-3 returns

AOC-4, MGT-7 and statutory audit coordination

Government fee — paid by you at actuals

SPICe+ filing fee: nil where authorised capital is up to ₹15,00,000; above that, as per the Companies (Registration Offices and Fees) Rules, 2014. Name reservation: ₹1,000. Stamp duty on MOA and AOA: as per the state. NDH-4 and later NDH-1/NDH-3 filing fees: at actuals as charged on the MCA portal. DSCs: at actuals.

Every price above is a professional fee, excluding GST and government charges. 50% upfront, 50% on delivery.

Professional fee excludes GST, MCA fees, stamp duty and DSC charges, which are paid at actuals. Payment: 50% upfront, 50% on delivery. Declaration as a Nidhi is decided by the Central Government and is not guaranteed.

How it works

Step 1

Eligibility check

Confirm seven founding members, three directors, ₹10 lakh paid-up equity capital and that every promoter and director meets the fit-and-proper criteria in the Nidhi Rules.

Step 2

DSCs and name

Obtain DSCs and reserve a name ending in "Nidhi Limited" through SPICe+ Part A.

Step 3

Incorporation

File SPICe+ Part B with the Nidhi MOA and AOA and receive the Certificate of Incorporation with PAN and TAN.

Step 4

Build to 200 members

Allot fully paid equity shares of at least ₹10 each so the company reaches 200 members and ₹20 lakh net owned funds within 120 days.

Step 5

File NDH-4

Apply in NDH-4 for declaration as a Nidhi within 120 days of incorporation, with fit-and-proper declarations of all promoters and directors.

Step 6

Declaration and start

The Central Government decides within 45 days; the approval is filed with INC-20A and only then can the Nidhi accept deposits and lend to members.

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Documents required

PAN and identity proof of all directors and subscribers

Address proof (bank statement or utility bill not older than two months)

Photographs, email IDs and mobile numbers of directors and subscribers

Registered office utility bill and rent agreement or ownership proof

Owner's NOC for the registered office

Fit-and-proper declaration from every promoter and director

Details of other Nidhi companies in which promoters or directors hold office

Bank statement showing subscription of ₹10 lakh paid-up equity capital

Audited or CA-certified statement of net owned funds (for NDH-4)

Why CorporateWalla®?

Member-funded lending

A declared Nidhi can accept deposits from and lend to its members without an NBFC licence from the RBI, subject to the Nidhi Rules.

Low entry capital

Paid-up equity capital of ₹10 lakh is enough to incorporate, with net owned funds built to ₹20 lakh within 120 days.

Rules-led structure

The Nidhi Rules fix deposit tenures, loan limits and ratios, which gives members a known framework.

120-day plan

We plan member onboarding and NOF from day one so NDH-4 is filed within 120 days and SH-7 and PAS-3 are not blocked.

CS-led compliance after incorporation

Our CA/CS team handles NDH-1, half-yearly NDH-3 and ROC filings after the declaration.

Frequently asked questions

A Nidhi company is a public limited company declared as a Nidhi or Mutual Benefit Society under Section 406 of the Companies Act, 2013. Its object is to cultivate thrift and savings among its members, so it may accept deposits only from members and lend only to members. It is regulated by the Nidhi Rules, 2014 and the MCA rather than through an RBI licence.

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