Nidhi Company Registration
A mutual benefit company for borrowing and lending among its own members - regulated under the Companies Act, built for community-level savings and credit, not open-market banking.
A Nidhi can only accept deposits from and lend to its own members, not the general public.
Must reach at least 200 members and ₹20 lakh net owned funds within one year of incorporation.
Exempt from most RBI regulations, but must comply with Nidhi Rules and MCA reporting.
Must file NDH-4 to formally declare Nidhi status after meeting the year-1 requirements.
Registered, and set up to meet the year-1 milestones.
Objects clause drafted specifically for Nidhi lending/deposit activities.
Deposit and lending policy drafted to comply with Nidhi Rules limits and ratios.
Filed once the 200-member and net-owned-fund thresholds are met within the first year.
Part of Layer 1 - Entry, for both setup tracks.
We structure the MOA and membership rules from day one so the year-1 milestones are achievable, not a surprise.
Start your setup →Missed the year-1 NDH-4 deadline? We assess your current status and scope the remediation path with MCA.
Run your diagnostic →Common questions
No - a Nidhi Company can only accept deposits from and lend to its own registered members, never the general public. This member-only restriction is the core regulatory feature that exempts it from most RBI banking regulations.
You cannot file the NDH-4 declaration to formally operate as a Nidhi, and may need to apply for an extension from the Regional Director or risk regulatory action. We monitor this milestone closely from incorporation.
A minimum paid-up equity share capital of ₹10 lakh is required at incorporation, and net owned funds must reach at least ₹20 lakh within the first year to file the NDH-4 declaration.
Nidhi Companies are largely exempt from core RBI regulations that apply to NBFCs, but they are regulated under the Companies Act and the Nidhi Rules, 2014, with reporting obligations to the Ministry of Corporate Affairs.
Yes - lending is typically secured against gold, immovable property, fixed deposits or government securities, subject to prescribed loan-to-value ratios under the Nidhi Rules.
A Nidhi is member-only and lighter-touch regulated than an NBFC (which can serve the public and is RBI-regulated); a Cooperative Society is state-registered with different governance rules. Nidhi is often the right fit for a closed community wanting a simple, company-structured savings-and-credit mechanism.