Nidhi Company Registration - Overview
📌 TL;DR - Nidhi Company Registration Services at a Glance
Nidhi company registration is the process of incorporating a mutual benefit company under Section 406 of the Companies Act, 2013. These NBFC-category entities accept deposits from and lend to members only, without requiring RBI approval. Minimum requirement: 7 members, 3 directors, Rs 10 lakh paid-up equity capital. File SPICe+ on MCA portal and apply for Nidhi declaration via Form NDH-4 within 120 days of incorporation.
Nidhi company registration opens the door for entrepreneurs to start a lending and deposit business in India without the complexity of RBI licensing. Governed by the Ministry of Corporate Affairs (MCA) under Section 406 of the Companies Act, 2013 and the Nidhi Rules, 2014, these entities serve as mutual benefit societies that cultivate savings habits among members.
| Parameter | Details |
|---|---|
| Governing Law | Section 406, Companies Act 2013 + Nidhi Rules, 2014 (as amended 2019, 2022) |
| Company Type | Public Limited Company with name ending in 'Nidhi Limited' |
| Minimum Members | 7 subscribers (must reach 200 within first year) |
| Minimum Directors | 3 (at least 1 resident in India) |
| Minimum Paid-Up Capital | Rs 10 lakh (equity shares only - no preference shares) |
| Net Owned Funds | Rs 20 lakh within 120 days of incorporation |
| Timeline | 15-30 working days for incorporation; NDH-4 within 120 days post-incorporation |
As of 2024, over 4,200 Nidhi companies operate across India, predominantly in southern states. The Nidhi (Amendment) Rules, 2022 introduced stricter requirements including increased paid-up capital of Rs 10 lakh and mandatory Central Government declaration via Form NDH-4.
Content is reviewed quarterly for accuracy.