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October 7, 2026 · Guides

Nidhi Company Registration Process: Step by Step

The nidhi company registration process has two halves that people often mix up: incorporating the company, and then getting the Central Government declaration that lets it actually take deposits and lend. If you plan the second half before you file the first, the whole thing runs much smoother. This guide walks through the nidhi registration process in the order we handle it for clients, from name to NDH-4. For the full picture, see our pillar guide on Nidhi company registration.

In this guide

The process at a glance

Registration of a Nidhi company is a public company incorporation followed by one extra application. The broad sequence is below.

  1. Choose a name ending in “Nidhi Limited” and reserve it.
  2. Gather the seven subscribers and at least three directors, with their documents.
  3. File SPICe+ (INC-32) with e-MOA (INC-33) and e-AOA (INC-34) on the MCA V3 portal.
  4. Receive the certificate of incorporation, PAN and TAN.
  5. Open the bank account, bring in the paid-up capital and file INC-20A.
  6. Build up 200 members and Rs 20 lakh of net owned funds, then file NDH-4.

Each step is covered below. The paperwork list sits in a separate post on documents required for a Nidhi company.

Step 1: Name and structure

A Nidhi must be a public company and its name must end with “Nidhi Limited”. The only object allowed is cultivating thrift and savings among members, by taking deposits from them and lending to them for their mutual benefit. Preference shares are not allowed.

Spend a little time on the name. Check it against existing companies and trademarks, and keep the object clause clean. Our post on name, MOA and AOA clauses goes into this in detail.

Step 2: Incorporation on the MCA portal

You need at least seven members and three directors, and minimum paid-up equity share capital of Rs 10 lakh (raised from Rs 5 lakh with effect from 19 April 2022). The filing is a SPICe+ form with the e-MOA and e-AOA attached, all on the MCA V3 portal. PAN and TAN are applied for within the same filing.

Once the Registrar approves, you receive the certificate of incorporation. If you want the screen-by-screen view, read our note on online Nidhi company registration.

Step 3: Things to do right after incorporation

  • Open a bank account in the company name and deposit the subscribers’ share money.
  • Hold the first board meeting and appoint the first auditor (ADT-1 goes in within 15 days of the appointment).
  • File INC-20A, the declaration for commencement of business, within 180 days of incorporation.
  • Complete director KYC (DIR-3) by 30 September each year after that.

Please check current due dates on the MCA portal, as they are revised from time to time.

Step 4: NDH-4 and the declaration

This is the step that decides whether the business can run. A company incorporated as a Nidhi has to apply in Form NDH-4 within 120 days of incorporation. At the time of application it should have at least 200 members and net owned funds (NOF) of Rs 20 lakh or more. The Central Government has 45 days to decide, and if it says nothing in that time, the application is treated as approved. Promoters and directors are expected to meet fit and proper criteria.

Without the declaration, or if it is rejected, the company cannot accept deposits from members or lend to them. We cover the filing and the usual reasons for rejection in NDH-4 for a Nidhi company. Timing across all steps is in how long Nidhi registration takes.

Where the process usually goes wrong

  • Counting members late. Reaching 200 members inside 120 days needs a plan from day one.
  • Raising only the minimum capital, then finding NOF falls short of Rs 20 lakh at NDH-4 time.
  • Loose object clauses in the MOA that drift beyond thrift and savings.
  • A registered office with weak address proof.

These are all avoidable if the sequence is mapped before filing. If you want us to handle it, see our Nidhi company registration service.

Need help with your Nidhi company? See our Nidhi company registration service, call +91 93117 95484, or write to mail@taxhint.in.

FAQs

What is the first step in the nidhi company registration process?

Settle the name and the structure. The name must end with “Nidhi Limited”, and you need seven members and at least three directors before the SPICe+ filing can go in.

Can a Nidhi start taking deposits right after incorporation?

No. Incorporation only creates the company. Deposits and loans to members are allowed once the NDH-4 declaration is in place, so treat NDH-4 as part of the registration process.

Which forms are used to incorporate a Nidhi company?

SPICe+ (INC-32) with e-MOA (INC-33) and e-AOA (INC-34), filed on the MCA V3 portal. PAN and TAN are applied for in the same filing.

What happens if NDH-4 is not filed within 120 days?

The company cannot take deposits from or lend to members, and it may need to look at the options the Rules give for the delay. Speak to your CA early and confirm the current position on the MCA portal.

More in this Nidhi series