REG-07 · Start a business
Nidhi Company
A mutual benefit company that borrows from and lends to its members.
- Professional fee from
- ₹24,999
- Timeline
- 20–30 working days
- Governed by
- Companies Act, 2013 · s.406 · Nidhi Rules, 2014
Professional fee. Government fee and stamp duty at cost.
Best suited to
Community savings and lending groups operating within a member base
Overview
A Nidhi company accepts deposits from and lends only to its own members. It is the lightest-touch way to run a lending business in India because it does not require an RBI licence, though it must satisfy the Nidhi Rules on membership, net owned funds and deposit ratio.
You need seven members and three directors at incorporation, and within 120 days you must reach 200 members and ₹20 lakh of net owned funds, then file Form NDH-4 to be declared a Nidhi.
What is included
- Name reservation with the word Nidhi Limited
- DSC and DIN for three directors
- MOA and AOA drafted to the Nidhi Rules
- SPICe+ incorporation, PAN and TAN
- Form NDH-4 declaration filing
Documents you need
- 01PAN card of every proposed director or partner
- 02Aadhaar plus one of voter ID, passport or driving licence
- 03Passport-size photograph
- 04Bank statement or utility bill from the last two months
- 05Proof of the registered office address and a No Objection Certificate from the owner
- 06Details of all seven proposed members
- 07Proof of ₹10 lakh initial equity capital
How the filing runs
- Week 1
Structure set up
Members, directors and capital structure confirmed.
- Week 2–3
Incorporated
SPICe+ filed and certificate issued.
- Month 4
NDH-4 filed
Once 200 members and ₹20 lakh NOF are reached.
Questions about nidhi company
01Do I need an RBI licence?
No. Nidhi companies are notified under the Companies Act and regulated by the Ministry of Corporate Affairs, not by RBI, as long as they deal only with members.
02What happens if I do not reach 200 members?
You can apply in Form NDH-2 for an extension. If it is still not met, the company cannot accept further deposits.
Tell us what the business does. We will tell you what it needs.
A 15-minute call with a Chartered Accountant or Company Secretary, at no cost, before you commit to anything.