Company Registration
Nidhi Company Registration in India
A Nidhi company lets members save and borrow among themselves. In short, nidhi company registration gives your group a compliant mutual-benefit finance company. However, the member and NDH rules must be exact. Therefore, Prospect Legal handles your nidhi company registration end to end — from incorporation to the NDH filings.
10+
Years in Legal Practice
Mutual Benefit
Member Finance
7 Members
Minimum Needed
End-to-End
COI to NDH-1
A Company for Members
What is a Nidhi company?
A Nidhi company is a mutual-benefit finance company under the Companies Act, 2013. Simply put, it takes deposits from and lends to its own members. Also, it cannot deal with outsiders. Therefore, it stays a closed, member-only body.
This structure suits savings groups and small communities. First, it is a simple way to run member finance legally. Next, it needs no RBI licence, unlike an NBFC. Also, members enjoy limited liability. Because of this, many local groups choose it.
Why choose a Nidhi company?
Nidhi company registration offers clear advantages. In practice, these are the main ones.
- No RBI licence. Notably, a Nidhi runs member finance without an NBFC licence.
- Limited liability. Moreover, members are protected from the company’s debts.
- Member trust. Also, the closed model keeps savings within the group.
- Simple lending. Finally, it offers easy secured loans to members.
Eligibility and legal requirements
A Nidhi company is formed under the Companies Act, 2013 and the Nidhi Rules, 2014 (as amended in 2022). In short, you need at least seven members and three directors to start, and at least one director must be resident in India. Also, since the 2022 amendment, a Nidhi must be incorporated with a minimum paid-up equity share capital of ₹10 lakh. Next, the name must end with “Nidhi Limited”. Accordingly, we arrange all of these for you.
A Nidhi then has to meet firm limits inside its first year. First, it must apply in Form NDH-4 for declaration as a Nidhi within 120 days of incorporation. Second, within one year it needs at least 200 members and Net Owned Funds (NOF) of at least ₹20 lakh. Third, the NOF-to-deposit ratio must not exceed 1:20, and it must keep unencumbered term deposits of at least 10% of outstanding deposits. Therefore, we plan the membership and funds from day one.
Documents required for Nidhi company registration
You need only a few documents to start. Also, our team checks each one before filing. As a result, approval stays smooth. Here is the list:
- PAN and Aadhaar of all directors and members
- Passport-size photos of the directors
- Address proof — bank statement or utility bill
- Proof of the registered office, such as a rent agreement
- A No Objection Certificate from the property owner
- Email and mobile number of each director
Nidhi company registration — step by step
The process is simple with expert help. Moreover, Prospect Legal handles every step for you. Here is how it works:
Step 1 — Get DSC and DIN
First, we obtain a Digital Signature Certificate for each director. Then, we apply for the Director Identification Number.
Step 2 — Reserve the Nidhi name
Next, we reserve a name ending with “Nidhi Limited”. Also, we check that the name is unique and available.
Step 3 — File SPICe+ for incorporation
Then, we file SPICe+ with the MOA and AOA. Also, PAN and TAN are applied for together.
Step 4 — Meet member limits and file NDH
Finally, we help build members and file Form NDH-1. After that, your Nidhi is fully compliant.
Nidhi company vs NBFC vs cooperative society
Founders often compare these finance forms. In short, they differ in licence, scope and members. The table makes it clear.
| Point | Nidhi Company | NBFC | Cooperative Society |
|---|---|---|---|
| RBI licence | Not needed | Required | Not needed |
| Who it serves | Members only | The public | Members |
| Governing law | Companies Act | RBI + Companies Act | Cooperative Act |
| Best for | Member savings groups | Public lending | Community bodies |
Cost, timeline and post-incorporation steps
Nidhi company registration is quick with the right help. In practice, incorporation takes a few working days once documents are ready. Because government fees vary by state and capital, we quote the exact figure upfront.
A few steps follow incorporation. First, open a company bank account. Next, build the membership to the required number. Also, file Form NDH-1 within the deadline. Therefore, we guide you through each one.
Nidhi company compliance calendar
A Nidhi carries both company-law filings and Nidhi-specific NDH returns. In short, we track and file each item for you so the status stays valid.
| Filing | Form | Due date |
|---|---|---|
| Declaration as a Nidhi | NDH-4 | Within 120 days of incorporation |
| First auditor appointment | ADT-1 | Within 30 days of incorporation |
| Return of members & funds (first year) | NDH-1 | Within 90 days of the first financial year end |
| Extension of time (if members/NOF short) | NDH-2 | Within 30 days of the financial year end |
| Half-yearly return | NDH-3 | Within 30 days of each half-year end |
| Financial statements | AOC-4 | Within 30 days of the AGM |
| Annual return | MGT-7 | Within 60 days of the AGM |
| Director KYC | DIR-3 KYC | By 30 September every year |
What makes up the cost of registration?
The total cost has a few clear parts. Also, government charges vary by state and capital, so we quote the exact figure upfront. Here is what it covers.
| Component | What it covers | Notes |
|---|---|---|
| Digital Signature (DSC) | A signature for each director | One-time, per person |
| Name reservation | Reserve the “Nidhi Limited” name in SPICe+ Part A | Small government fee |
| MCA filing fee | The SPICe+ incorporation filing | Scales with authorised capital |
| Paid-up capital | Minimum ₹10 lakh brought in by members | Your own funds, not a fee |
| Stamp duty | Duty on the MOA and AOA | Varies by state |
| Professional fee | Our end-to-end handling and NDH filings | Fixed and quoted upfront |
Why choose Prospect Legal for Nidhi company registration?
Many portals just file a form. Few, however, guide you like a partner. Here is what sets us apart:
- Fixed pricing. Because our fees are clear, you face no surprises.
- Rules expertise. Also, we keep you compliant with the Nidhi Rules.
- End-to-end. Next, we handle DSC, DIN, SPICe+ and NDH filings together.
- Fast turnaround. Moreover, we push the MCA process to save time.
- Real support. Above all, you can reach a human on call or WhatsApp anytime.
Nidhi company registration — what’s included
| Service | What we do | Benefit to you |
|---|---|---|
| DSC & DIN | Digital signatures and director IDs | Ready-to-file directors |
| Name Approval | Reserve a “Nidhi Limited” name | A compliant brand |
| MOA & AOA | Draft the charter documents | A compliant foundation |
| SPICe+ Filing | File incorporation with the MCA | A registered Nidhi |
| PAN, TAN & COI | Apply for PAN, TAN and get the COI | Ready to operate |
| NDH-1 Guidance | File the member and fund return | Full Nidhi compliance |
Related company registration services
Setting up your organisation? Therefore, explore these related services next:
Frequently asked questions about Nidhi company registration
What is a Nidhi company used for?
A Nidhi company lets members save and borrow among themselves. Simply put, it runs member-only finance. Also, it cannot deal with outsiders. So, it suits savings and lending groups.
How many members are needed?
You need at least seven members and three directors to start. Also, the company must reach 200 members within a year. In addition, one director must be resident in India. So, plan the membership early.
Does a Nidhi need an RBI licence?
No, a Nidhi does not need an RBI licence. Notably, this is its key advantage over an NBFC. Then, it follows the Nidhi Rules instead. Accordingly, we keep you compliant.
How long does registration take?
With documents ready, incorporation takes a few working days. However, MCA processing can add time. So, timelines vary a little. Meanwhile, we push the process to keep it fast.
Rules, cost and compliance
What does Nidhi registration cost?
The cost depends on the state and the authorised capital. Also, professional fees apply for the filing. Because both vary, we quote the exact figure upfront. So, there are no surprises.
What is Form NDH-1?
Form NDH-1 reports the members and funds after one year. Notably, it proves the Nidhi met the limits. Then, we file it on time. Accordingly, we keep the status valid.
What compliances apply after registration?
A Nidhi files annual returns and financial statements. Also, it files NDH forms on schedule. In addition, it keeps deposit and loan records. We set these up for you.
Can a Nidhi lend to non-members?
No, a Nidhi can only deal with its own members. Simply put, outsiders are not allowed. Also, this protects the member model. So, membership is the first step for any dealing.
Capital, NOF and NDH filings
What is the minimum capital for a Nidhi company?
Since the 2022 amendment, a Nidhi must be incorporated with at least ₹10 lakh paid-up equity share capital. Notably, this is member capital, not a fee. Then, we plan the contribution correctly. Accordingly, incorporation stays compliant.
What Net Owned Funds does a Nidhi need?
Within one year, a Nidhi needs Net Owned Funds of at least ₹20 lakh. Also, the NOF-to-deposit ratio must not exceed 1:20. In addition, it must hold unencumbered term deposits of at least 10% of outstanding deposits. We track these for you.
What is Form NDH-4 and when is it due?
Form NDH-4 is the application to be declared a Nidhi by the Central Government. Notably, it must be filed within 120 days of incorporation. Then, if there is no decision in 45 days, approval is deemed granted. So, we file it promptly.
How many members must a Nidhi reach?
A Nidhi must have at least 200 members within one year of incorporation. Also, it starts with a minimum of seven members. Then, we help you build the membership in time. Accordingly, the status stays valid.
Other common questions
What must a Nidhi company name end with?
A Nidhi company name must end with “Nidhi Limited”. Notably, this signals its status. Then, we reserve a name that follows the rule. Accordingly, approval stays smooth.
What is the difference between a Nidhi and an NBFC?
A Nidhi serves only members and needs no RBI licence. An NBFC serves the public and needs RBI approval. So, the Nidhi model is simpler. Accordingly, we advise the better fit.
Do I get PAN and TAN with incorporation?
Yes, PAN and TAN are applied for within SPICe+. Also, they arrive with the incorporation. So, you do not apply separately. This saves you time.
Can Prospect Legal handle the full registration?
Yes, we manage it end to end. First, DSC, DIN and name approval. Next, SPICe+, MOA and AOA. Finally, the COI and NDH filings. Call 7000-12-7225 to begin.
Ready to register your Nidhi company? Start today.
Do not let paperwork slow your group. Instead, let our experts file your nidhi company registration end to end. As a result, you get a compliant Nidhi, fast.
