Nidhi Company Registration — Incorporation and NDH-4 Declaration

No. Since 16 July 2024, the proviso to Rule 4(5) of the Nidhi Rules says a company cannot use the words “Nidhi Limited” until the Central Government declares it a Nidhi under Section 406(1). So you incorporate with a name that does not carry the suffix, file NDH-4, and adopt the Nidhi name after approval. We pick a name that works for both stages, so the later change is simple.

You need seven members to incorporate and at least 200 members within 120 days of incorporation, when you file NDH-4. This is Rule 3B(1), added in 2022. The older one-year window under Rule 5 does not apply to companies incorporated after the 2022 amendment. Members join by taking shares, so start building the list before incorporation. A planned enrolment drive closes the gap.

Paid-up equity share capital must be at least ₹10 lakh under Rule 4(1). By the NDH-4 stage, net owned funds must reach ₹20 lakh or more. NOF is broadly paid-up capital plus free reserves, less losses and intangible assets. If your promoters can commit ₹20 lakh between them, the capital test is easy to meet.

Your application is deemed approved if the Central Government does not decide within 45 days of receiving it, under Rule 3B(4). You then file the approval, or the deemed approval, with Form INC-20A and start business. If the ministry raises queries, we reply within the time given. Most delays come from incomplete member data, so we check that list carefully before filing.

No. Rule 6 bars a Nidhi from taking deposits from, or lending to, anyone who is not a member. It also cannot open current accounts, advertise for deposits or pay brokerage for mobilising them. A depositor can become a member by taking shares, which keeps the business lawful. Within the member base, fixed and recurring deposits are allowed for 6 to 60 months and 12 to 60 months respectively.

No. A Nidhi is declared by the Central Government under Section 406 of the Companies Act and is supervised by the Ministry of Corporate Affairs. RBI’s NBFC registration Directions of 28 November 2025 exempt Nidhi companies from Sections 45-IA, 45-IB and 45-IC of the RBI Act. The trade-off is that it can deal only with members. If you plan to lend to the general public, an NBFC route with RBI fits better, and we can compare both for you.

Only after it has earned a net profit after tax in each of the three preceding financial years, under Rule 10. It may then open up to three branches within its district. More branches, or branches outside the district, need prior permission of the Regional Director, and no branch can be opened outside the State of the registered office. Here is the catch: a Faridabad Nidhi can later seek permission for a Gurugram branch, but never one in Delhi. Plan your first three years from one office.

Up to ₹2 lakh per member while total deposits are below ₹2 crore, under Rule 15(2). The cap rises to ₹7.5 lakh, ₹12 lakh and ₹15 lakh as deposits grow past ₹2 crore, ₹20 crore and ₹50 crore. Loan interest cannot exceed 7.5% above the highest deposit rate, on reducing balance. These limits are easy to track once your loan software enforces them automatically.