Nidhi Company Registration in India
Register your mutual benefit society under Section 406 of the Companies Act, 2013 — without RBI approval.
Get Started Today
500+
Registrations completed
15–25 days
Average turnaround
₹5 Lakh
Minimum capital
100%
MCA-compliant process
What is a Nidhi Company?
A Nidhi Company is a specialised Non-Banking Financial Company (NBFC) designed to promote savings and thrift among its members. The term Nidhi means "treasure" in Sanskrit.
Incorporated under Section 406 of the Companies Act, 2013 and governed by the Nidhi Rules, 2014, it operates as a closed mutual benefit society — borrowing from members and lending back to them at regulated interest rates.
NIDHI stands for National Initiative for Developing and Harnessing Institutions.
Unlike a standard NBFC, a Nidhi Company does not require RBI registration or approval. The Ministry of Corporate Affairs (MCA) is the primary regulator. All transactions must be conducted exclusively among registered members — the general public cannot deposit funds or avail loans.
Regulated by
MCA (Ministry of Corporate Affairs) Nidhi Rules, 2014
Governed under
Section 406, Companies Act 2013
RBI Approval Required?
✗ Not required
Can serve general public?
✗ Members only
Minimum members at incorporation
7
Name must end with
"Nidhi Limited"
Benefits of Registering a Nidhi Company
No RBI Approval Required
Simpler setup than a standard NBFC — governed only by MCA and Nidhi Rules, 2014.
Low Capital Requirement
Begin operations with a minimum paid-up equity capital of just ₹5 lakh.
Limited Liability
Members' personal assets are shielded — liability is restricted to their shareholding.
Promotes Community Savings
Cultivates a savings culture within a defined member community — ideal for cooperative groups.
Simple Compliance
Fewer regulatory filings than a full NBFC; structured annual returns via MCA portal.
Hyper-local Reach
Serve specific geographic communities — township societies, cooperative groups, employee welfare funds.
Eligibility & Statutory Requirements
At Incorporation
| Minimum members | 7 shareholders |
| Minimum directors | 3 (must also be members) |
| Paid-up equity capital | ₹5 lakh minimum |
| Citizen requirement | Indian citizens only, age 18+ |
| Name format | Must end with "Nidhi Limited" |
Within First Year
| Minimum members | Must grow to 200 |
| Net Owned Funds (NOF) | ₹20 lakh minimum |
| NOF filing | Form NDH-4 within 120 days of FY end |
| Unencumbered term deposits | Minimum 10% of deposits outstanding |
Capital Thresholds
Deposit-to-NOF Ratio
1 : 20
You can accept up to 20× NOF as deposits
Reserve Requirement
Unencumbered reserves must be minimum 10% of deposits
How to Register a Nidhi Company
End-to-end handled by our experts — 15 to 25 working days under normal circumstances.
Obtain DSC & DIN
Directors obtain Class-3 Digital Signature Certificates (DSC) and Director Identification Numbers (DIN) through MCA-certified agents.
Reserve Company Name
Submit up to 3 name options via SPICe+ Part A. MCA approves one. Name must end with "Nidhi Limited". Approval typically takes 2–3 working days.
Draft MoA & AoA
Memorandum of Association and Articles of Association are drafted as per Nidhi Rules, 2014 — defining the object clause, member rights, and operational framework.
File SPICe+ Part B
Main incorporation form filed with: MoA, AoA, director declarations (INC-9), registered office proof, and conflict of interest forms (DIR-12, INC-22).
Receive Certificate of Incorporation
MCA issues the Certificate of Incorporation with CIN. The company is now legally registered.
Post-Incorporation Setup
Open a current bank account, obtain PAN and TAN, apply for GST (if applicable), and begin onboarding members.
File NDH-4 Declaration
Within 120 days of end of first financial year — declare fulfilment of 200-member and ₹20 lakh NOF conditions to MCA for official Nidhi status.
Documents Required
Directors & Shareholders
- PAN Card (mandatory)
- Aadhaar / Voter ID / Passport / DL (identity proof — any one)
- Bank statement or utility bill (address proof, max 2 months old)
- Passport-size photograph (recent)
- Mobile number and email for MCA portal registration
Registered Office
If Owned
- Property ownership documents
- Latest utility bill matching address
If Rented
- Rent agreement
- NOC from landlord
- Utility bill matching address
Company Documents
- Proposed company name options (up to 3)
- Proposed object clause for MoA
- Shareholding pattern with capital contribution amounts
- Declaration of no disqualification from all directors
Compliance Calendar
First-Year Mandatory Milestones
| Deadline | Requirement |
|---|---|
| Within 1 year | Achieve 200+ members |
| Within 1 year | Maintain ₹20 lakh Net Owned Funds |
| Within 120 days of FY end | File Form NDH-4 (Nidhi declaration) |
| Within 90 days of FY end | File Form NDH-1 (member & deposit details) |
| Within 30 days of Mar 31 | File Form NDH-3 (half-year return) |
| Within 30 days of Sep 30 | File Form NDH-3 (half-year return) |
Annual Recurring Filings
| Form | Purpose | Due |
|---|---|---|
| NDH-1 | Member and deposit return | Within 90 days of FY end |
| NDH-3 | Half-yearly return | Within 30 days of each half-year end |
| AOC-4 | Financial statements | Within 30 days of AGM |
| MGT-7 | Annual return | Within 60 days of AGM |
| ITR-6 | Income Tax Return | 31 October each year |
| Stat. Audit | Mandatory annual audit | Before AGM |
What a Nidhi Company Can and Cannot Do
✓ Permitted Activities
- Accept deposits from registered members only
- Provide secured loans against gold / silver ornaments
- Provide secured loans against property (mortgage)
- Provide secured loans against Fixed Deposits held with the Nidhi
- Offer locker facilities to members (limited)
- Invest surplus funds in government securities
✗ Prohibited Activities
- Cannot accept deposits from the general public
- Cannot issue preference shares or debentures
- Cannot conduct chit fund, leasing, hire-purchase, or insurance business
- Cannot advertise for deposits publicly
- Cannot pay commissions or incentives to procure deposits
- Cannot pledge member assets for external borrowings
- Cannot enter into partnership with any other entity
Why Register Your Nidhi Company
with Juris Capital Advisory
Chartered Accountants
Full statutory competence — your filing is handled by a licensed Chartered Accountant.
15–25 Day Delivery
Faster than the industry average of 35–45 days through streamlined MCA filing.
End-to-End Handling
DSC to Certificate — we manage every step. You only provide documents and sign where needed.
100% Confidential
Your business information and member details are protected by professional legal privilege.
Dedicated Manager
A named advisor guides you from onboarding through first-year NDH compliance.
Pan-India Service
Clients registered from Chennai, Bangalore, Mumbai, Delhi, Hyderabad, and beyond.
No Hidden Costs
Government fees, stamp duty, and professional charges all included in your quoted price.
Post-Registration Support
We remain your compliance partner for NDH-1, NDH-3, NDH-4, AOC-4, and MGT-7 filings.
What Our Clients Say
“Juris Capital handled our Nidhi registration from name approval to Certificate of Incorporation without a single back-and-forth on our side. The team knew exactly what MCA needed.”
Selvam R.
Founder, Community Savings Society, Coimbatore
“We were confused about the 200-member and NOF compliance timeline. The JCA team laid out a month-by-month calendar and filed the NDH-4 on time. Professional and thorough.”
Priya Venkatesh
Managing Director, Nidhi Limited, Chennai
“Affordable, fast, and transparent. We knew the exact cost upfront and were kept updated at every step. Would strongly recommend to any group planning a Nidhi company.”
Arjun Mehta
Treasurer, Employee Welfare Society, Bengaluru
Frequently Asked Questions
Register Your Nidhi Company
in 15–25 Days
Our ICAI-registered CAs handle the entire process — from DSC to Certificate of Incorporation. Transparent pricing, no hidden costs.