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Nidhi Company Registration

Set up a mutual benefit finance company for your community — accept deposits and lend only to members.

Register Nidhi — ₹9,999

Nidhi Company Overview

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Member-Only Finance

Accepts deposits from and lends only to its members — not the general public. Regulated under Section 406 of Companies Act 2013.

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Capital Requirement

Minimum paid-up equity share capital of ₹10 lakh at incorporation. No preference shares allowed.

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Membership Targets

Must have minimum 200 members within 1 year from incorporation as per Nidhi Rules 2014.

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Net Owned Funds

NOF must be ₹20 lakh before applying for Nidhi declaration. NOF to deposits ratio: 1:20.

Compliance Requirements

RequirementThreshold / FormDeadline
Minimum members at incorporation7 members, 3 directorsAt registration
Reach 200 membersNDH-4 declarationWithin 1 year
Net Owned Funds≥ ₹20 lakhBefore NDH-4
Annual Return (NDH-1)NDH-1 + Audited accounts90 days from year end
Half-yearly return (NDH-3)NDH-3April 30 & Oct 30
AGM & ROC filingsMGT-7, AOC-4As per Companies Act

Registration Process

1

Name Approval

Company name must include the word "Nidhi Limited". Apply via RUN on MCA portal.

2

SPICe+ Incorporation

File SPICe+ with MOA/AOA mentioning Nidhi objects, and ₹10 lakh paid-up capital.

3

Grow to 200 Members

Add at least 200 members and build NOF to ₹20 lakh within 1 year.

4

NDH-4 Declaration

Apply to Regional Director for Nidhi status via NDH-4. Upon approval, Nidhi Rules fully apply.

Frequently Asked Questions

Can a Nidhi Company accept deposits from non-members?

No. Nidhi Companies can only accept deposits from and lend to their own members. Accepting public deposits is strictly prohibited.

What is the maximum interest rate on deposits?

Maximum interest on deposits is 2% above the highest rate offered by nationalised banks for similar tenure.

What happens if 200 members are not achieved in 1 year?

The company must apply for extension to the Regional Director. Failure to comply can lead to strike-off proceedings.

Can a Nidhi issue preference shares?

No. Nidhi Companies can only issue equity shares. Preference shares are not permitted under Nidhi Rules.

Launch Your Community Finance Company

Full Nidhi Company registration with compliance roadmap and NDH forms support.

Register Nidhi — ₹9,999
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