NIDHI COMPANY

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A Nidhi Company is a type of Non-Banking Financial Company (NBFC) that operates exclusively for its members and is involved in accepting deposits and lending money only to its shareholders. It is designed to encourage savings, mutual support, and financial discipline among members.

Nidhi Companies are not required to obtain an RBI license, but must follow guidelines under the Nidhi Rules, 2014. They cannot deal with the public — only with registered members.

At Startup Bharat, we handle complete registration and compliance for:

Name reservation
DSC & DIN for directors
MOA & AOA drafting
MCA filing and incorporation
Post-registration support to meet Nidhi rules (minimum 200 members, net owned funds, etc.)

Nidhi Companies are best suited for those who want to start a member-based lending or deposit business — such as rural banks, credit societies, or small community finance groups.

Why Nidhi Company

No RBI License Required
Promotes Savings & Lending Among Members
Low Startup Capital Requirement
Limited to Members = Low Risk
Legal Recognition Under Companies Act
Suitable for Rural & Community Finance
Exempt from Core NBFC Regulations

ISO 9001:2015 Certification - Benefits

No RBI Approval Required
Low Compliance Compared to NBFCs
Easy to Form & Operate
Promotes Community Financial Inclusion
Cheaper Credit to Members
Legal Status and Perpetual Existence
Safe & Regulated Framework for Members

Why Nidhi Company Certification

A legally recognized way to build a community-based finance business
Encourages saving and lending habits among members without RBI intervention
Registered under Section 406 of the Companies Act, 2013 and governed by Nidhi Rules, 2014

Nidhi Company Certification is ideal for entrepreneurs who want to start a small finance or deposit-lending business within a specific community, society, or member group. It allows you to legally accept deposits and offer loans to members without needing an RBI license, provided you follow the Nidhi rules laid out by the Ministry of Corporate Affairs (MCA).

Unlike NBFCs, a Nidhi Company is low-cost, low-compliance, and member-focused. It is perfect for people aiming to operate cooperative-style finance models such as credit groups, rural lending, chit funds (within limits), or savings collectives. You need only ₹10 lakhs capital and 7 members (3 directors) to begin, and you must reach 200 members within a year.

At Startup Bharat, we provide complete support for incorporation, documentation, and post-registration compliance — helping you establish a trustworthy, legally sound financial institution for your community.

If you’re looking to create a mutual benefit society or local finance business, Nidhi Company Certification is the most efficient and affordable route.

Nidhi Company Certification Process

Once a company is incorporated as a Nidhi Company, it must meet specific conditions to be certified as a Nidhi Company by the Ministry of Corporate Affairs (MCA).

✅ Step-by-Step Certification Process (as per Nidhi Rules, 2014):

Company Incorporation as “Nidhi Limited”
First, the company is registered as a Public Limited Company with “Nidhi Limited” in its name under Section 406 of the Companies Act, 2013.
Fulfill Pre-Certification Conditions (within 120 days)
To apply for official recognition as a Nidhi Company, the following mandatory conditions must be met:
- At least 200 members/shareholders
- Minimum Net Owned Funds (NOF) of ₹10 lakhs
- Unencumbered term deposits of at least 10% of outstanding deposits
- NOF to deposit ratio not more than 1:20
Filing NDH-1 with MCA (within 90 days of incorporation)
File Form NDH-1 with ROC — a return of statutory compliances including member list, capital details, and deposit structure.
Apply for Nidhi Certification via NDH-4
File Form NDH-4 to get official Nidhi Company status approval from the MCA:
- Must be filed within 120 days of incorporation
- Requires details of promoters, members, financial summary, and compliance status
MCA Scrutiny & Certification Grant
If all Nidhi conditions are met, the Central Government (via MCA) issues Nidhi Company Certification, confirming your legal status.

Nidhi Company Certification Cost

The cost of Nidhi Company Certification includes both the initial incorporation as a public limited company and the post-registration filings required to get certified under the Nidhi Rules, 2014. At Startup Bharat, we offer bundled, transparent pricing with full compliance support.

✅ Key Cost Components:

DSC & DIN for 3 directors
Company Name Reservation (with “Nidhi Limited”)
MOA, AOA & Incorporation (SPICe+ Filing)
PAN, TAN, COI issuance
NDH-1, NDH-2, NDH-3, NDH-4 Filing
Professional drafting of Nidhi Object Clause
ROC & MCA filing charges
Post-incorporation guidance on capital, members & deposits compliance

💰 Estimated Cost Range:

Basic Package (Incorporation Only): ₹30,000 – ₹35,000 INR
Standard Package (Incorporation + NDH-1 & NDH-4 Compliance): ₹40,000 – ₹55,000 INR
Premium Package (Full Certification + 1st-year Compliance Support): ₹55,000 – ₹75,000 INR+

Reasons to Get Nidhi Company Certification

✅ Legally Run a Member-Based Finance Business
Allows you to accept deposits and offer loans legally—within a defined community or member base.

✅ No RBI License Required
Operate a finance company without needing complex and expensive RBI NBFC licensing.

✅ Encourages Thrift & Savings Habits
Promotes saving and borrowing among lower- and middle-income communities in a structured way.

✅ Ideal for Rural and Small-Town Finance Models
Perfect for self-help groups, cooperatives, and credit societies aiming for legal structure and recognition.

✅ Access to Legal Recognition and Member Trust
Boosts your organization’s credibility by being certified under Section 406 of the Companies Act.

✅ Low Risk, Low Compliance Model
Since business is limited to members only, there is reduced regulatory risk and lower compliance burden compared to full NBFCs.

✅ Easy to Scale with a Local Network
You can grow by expanding your member base and deposit-loan operations without dealing with the public.

1. What is a Nidhi Company?

A Nidhi Company is a non-banking finance company (NBFC) registered under Section 406 of the Companies Act, 2013, created to promote savings and lending among its members only.

2. Does a Nidhi Company need an RBI license?

No, Nidhi Companies are exempt from RBI registration if they strictly follow the Nidhi Rules, 2014 and operate within member limits.

3. How many members are required to get certified as a Nidhi Company?

You must have a minimum of 200 members and ₹10 lakhs in Net Owned Funds (NOF) within 1 year of incorporation to get MCA approval through NDH-4.

4. Can a Nidhi Company accept public deposits?

No, it can accept deposits only from its registered members — public dealing is strictly prohibited.

5. What is the maximum amount a Nidhi Company can lend or accept?

A Nidhi Company must maintain a NOF to deposit ratio of 1:20, and issue loans only within MCA-prescribed limits based on deposit amounts.

6. What is the validity of Nidhi Company certification?

Once MCA approves the NDH-4 filing, the Nidhi status remains valid as long as you comply with annual filings and maintain eligibility conditions.