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We handle the complete process for your Nidhi Company right here in Chennai Office. Get certified quickly and legally with our expert local team.
Professional Fee: ₹17,299 | Govt Fee: ₹2,000 - ₹5,000 | Total: from ₹19,299 (incl. govt fees)
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A Nidhi Company is a specialized non-banking financial company (NBFC) recognized under Section 406 of the Companies Act, 2013 and governed by the comprehensive Nidhi Rules, 2014 (as amended by Nidhi Amendment Rules, 2022). Derived from the Hindi word "Nidhi"—meaning treasure or fund—a Nidhi Company is formed with the exclusive object of cultivating the habit of thrift, savings, and mutual financial benefit among its members. Operating on the time-tested principles of mutual benefit societies, a Nidhi Company is legally authorized to accept deposits (in the form of Fixed Deposits, Recurring Deposits, and Savings Accounts) and lend money strictly to and among its registered shareholder members against secure tangible collateral such as gold jewelry, property mortgages, or government securities.
The greatest strategic advantage of incorporating a Nidhi Company is that, although it functions as a lending and deposit-taking institution, it is exempted from obtaining a formal, stringent Non-Banking Financial Company (NBFC) license from the Reserve Bank of India (RBI). Instead, Nidhi Companies are regulated directly by the Ministry of Corporate Affairs (MCA), making them the most accessible and cost-effective legal structure for entrepreneurs seeking to establish a micro-banking or mutual finance business in India. However, under the rigorous Nidhi (Amendment) Rules 2022, newly incorporated entities must fulfill critical post-incorporation milestones—including achieving a minimum of 200 members and Net Owned Funds (NOF) of ₹20 Lakhs within 120 days—and mandatorily file Form NDH-4 to obtain formal Central Government declaration as a Nidhi Company. At IPRO, our financial law experts and Company Secretaries provide a turnkey Nidhi formation and compliance ecosystem to ensure your mutual finance institution operates with 100% statutory legitimacy.
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Professional Fee: ₹17,299 onwards | Govt Fee: ₹2,000 - ₹5,000 | Total: from ₹19,299 (incl. govt fees)
Gather these documents for your Chennai Office application.
The starting fee of ₹19,299 covers specialist consultation, document preparation, the government filing fee, and tracking until you receive the final certificate. Additional government fees may apply for objections, renewals, or expedited processing.
Turnaround depends on the specifics of your case. Once I-Pro Solutions scopes your requirements, I-Pro Solutions will give you a realistic timeline with milestones.
Most filings require identity proof (PAN/Aadhaar/passport), address proof, business registration documents, and (for IP filings) examples of use. An I-Pro Solutions specialist will send a tailored checklist within 24 hours of starting.
If a filing is rejected due to an error by I-Pro Solutions, I-Pro Solutions will refile at no extra cost and refund the service fee. If the rejection is due to information you provided, I-Pro Solutions will work with you to fix and refile at a discounted fee.
A Nidhi Company is a mutual benefit non-banking finance company (NBFC) registered under Section 406 of the Companies Act, 2013. Its primary objective is to cultivate the habit of thrift and savings among its members by accepting deposits (FD, RD, Savings) and lending money strictly to and among its registered shareholder members against secure collateral.
No, one of the biggest strategic advantages of a Nidhi Company is that it is exempted from the requirement of obtaining a formal NBFC registration license from the RBI under Section 45-IA of the RBI Act. Instead, Nidhi Companies are regulated directly by the Ministry of Corporate Affairs (MCA) under the Nidhi Rules, 2014.
Under the Nidhi (Amendment) Rules, 2022, a Nidhi Company must be incorporated with a minimum paid-up equity share capital of ₹10,00,000 (Ten Lakh Rupees). Within 120 days of incorporation, the company must increase its Net Owned Funds (NOF) to at least ₹20,00,000 (Twenty Lakh Rupees).
Incorporating a Nidhi Company requires a minimum of seven (7) Shareholders (promoters) and a minimum of three (3) Directors. All three directors must be shareholders of the company. Within 120 days of incorporation, the shareholder base must expand to a minimum of 200 members.
Form NDH-4 is a statutory application filed with the Regional Director (MCA) for obtaining formal declaration as a Nidhi Company. Under amended rules, every newly incorporated Nidhi Company must file Form NDH-4 within 120 days of incorporation after achieving 200 members and ₹20 Lakhs NOF. Without NDH-4 approval, the company cannot legally continue operating or open new branches.
If a company cannot achieve 200 members within the initial 120-day timeframe, it must apply to the Regional Director in Form NDH-2 within 30 days of the close of the first financial year requesting a statutory extension. If the extension is denied or the company fails to comply, it is prohibited from accepting any further deposits.
A Nidhi Company can lend money to its registered members only against secure tangible collateral: (1) Gold, silver, and precious jewelry; (2) Immovable property (residential or commercial mortgages); (3) National Savings Certificates (NSC), other government securities, or insurance policies; and (4) Fixed deposit receipts of the Nidhi company itself.
No, Rule 15 of the Nidhi Rules strictly prohibits a Nidhi Company from granting unsecured personal loans, micro-finance loans without collateral, vehicle hire-purchase loans, or business cash-credit loans. All loans must be backed by approved tangible security.
No, a Nidhi Company can accept deposits from and lend money strictly to its registered shareholder members only. It cannot solicit or accept deposits from the general public, corporate bodies, or non-members, nor can it issue advertisements soliciting public deposits.
Under Nidhi Rules, the rate of interest offered on savings deposit accounts cannot exceed by more than 2% the rate offered by nationalized banks. For Fixed Deposits (FD) and Recurring Deposits (RD), the maximum interest rate cannot exceed the highest rate offered by NBFCs as prescribed by RBI (currently capped around 11% to 12% per annum).
A Nidhi Company cannot charge interest on loans exceeding 7.5% above the highest rate of interest offered on its deposits. For example, if your highest FD interest rate is 10% per annum, the maximum interest rate you can charge on gold or property loans is 17.5% per annum.
A Nidhi Company can open up to 3 branch offices within its home district only after completing 3 consecutive financial years of net profits and obtaining formal NDH-4 declaration. To open branches outside the district (within the same state), prior approval of the Regional Director is required. A Nidhi Company cannot open branches outside its state of incorporation.
Net Owned Funds (NOF) means aggregate paid-up equity capital and free reserves minus accumulated losses and intangible assets. Under amended rules, NOF must be at least ₹20 Lakhs. The ratio of NOF to total deposits accepted cannot exceed 1:20 (i.e., with ₹20 Lakhs NOF, you can accept total deposits up to ₹4 Crores).
In addition to standard MCA annual filings (Form AOC-4 and MGT-7A) and income tax returns (ITR-6), a Nidhi Company must file: (1) Form NDH-1 (Annual Statutory Return) within 90 days of financial year end; and (2) Form NDH-3 (Half-Yearly Return) within 30 days of the end of each half-year.
Incorporating a Nidhi Company requires specialized financial and legal precision under the amended 2022 rules. IPRO provides an expert Company Secretary-led turnkey ecosystem—I-Pro Solutions structure your ₹10L capital perfectly, draft custom mutual-benefit MoA/AoAs, and provide complete operational kits and NDH-4 declaration roadmaps to ensure your micro-banking venture is 100% compliant.