Nidhi Company Registration

A Nidhi company is a type of non-banking finance company formed to cultivate the habit of thrift and savings among its members, borrowing from and lending only to its members. It is incorporated as a public limited company and is governed by Section 406 of the Companies Act, 2013 and the Nidhi Rules, 2014.

It deals only with its own members (shareholders) — it cannot accept deposits from, or lend to, the general public, and it cannot carry on other finance activities such as leasing, hire-purchase, insurance, or chit funds.

It is incorporated with a minimum of seven members and three directors, and must then meet strict post-incorporation criteria — including reaching 200 members and the prescribed Net Owned Funds — within set timelines.

• PAN and Aadhaar of all directors and the initial members
• Identity and address proof of directors and members
• Passport-size photographs
• Registered office proof — rent agreement and NOC, or ownership proof, with a recent utility bill
• Digital Signature Certificate (DSC) for the proposed directors
• Details of the proposed share capital

1. 01

   Obtain Digital Signature Certificates

   DSCs are issued for the proposed directors.

2. 02

   Reserve the company name

   Apply for name approval, with the name ending in “Nidhi Limited”.

3. 03

   Incorporate as a public limited company

   File SPICe+ with the MOA and AOA, a minimum ₹10 lakh paid-up capital, at least 7 members and 3 directors, with DIN, PAN, and TAN.

4. 04

   Certificate of Incorporation

   On approval, the Registrar issues the Certificate of Incorporation with the CIN, plus PAN and TAN.

5. 05

   Meet criteria and file NDH-4

   Within 120 days, reach the member and Net Owned Funds criteria and file Form NDH-4 for declaration as a Nidhi; then maintain ongoing Nidhi returns.

PBT incorporates your Nidhi correctly and steers it through the strict post-incorporation criteria.

• We confirm whether a Nidhi suits your plans, and explain the membership and Net Owned Funds criteria up front
• Incorporation as a public limited company with the right capital, name, and objects
• The NDH-4 declaration within 120 days, once the criteria are met
• PAN, TAN, and the post-incorporation set-up
• Ongoing Nidhi compliance — NDH-1, the half-yearly NDH-3, statutory audit, and ROC filings
• Scope, deliverables, and fees agreed in writing up front

• What is a Nidhi company?

  A company that borrows from and lends to its own members to encourage thrift and savings, incorporated as a public limited company under Section 406 of the Companies Act, 2013 and the Nidhi Rules, 2014.

• Can a Nidhi deal with the public?

  No. It can only accept deposits from, and lend to, its members — not the general public.

• What is required at incorporation?

  Incorporation as a public limited company with at least ₹10 lakh paid-up equity capital, a minimum of 7 members and 3 directors, and “Nidhi Limited” in the name.

• What must it achieve after incorporation?

  Within 120 days it must apply in Form NDH-4, and it must reach at least 200 members and Net Owned Funds of ₹20 lakh, with the prescribed NOF-to-deposit ratio.

• Is it regulated by the RBI?

  Nidhis belong to the NBFC family but are largely exempt from the core RBI provisions, and are regulated mainly under the Nidhi Rules and by the MCA.

• How long does it take?

  Incorporation typically takes about 15–20 working days once documents are ready; the NDH-4 declaration follows within 120 days, once the member and Net Owned Funds criteria are met.