Firm Registration & Compliances
Nidhi Company
Nidhi company incorporation and NDH-4 declaration — membership, net owned fund and the Nidhi Rules compliances that follow.
- Estimate Cost
- ₹25,000 – ₹75,000
- Typical duration
- 30 days
Service overview
- A Nidhi Company is a specialized public entity recognized under Section 406 of the Companies Act, 2013 and governed by Nidhi Rules, 2014
- Formed exclusively to cultivate thrift and savings among its members, a Nidhi Company is legally permitted to accept deposits from and lend solely to its registered members against approved securities
Who needs it? / When is it needed?
- Promoters seeking to establish a localized, community-based mutual benefit financial institution without full RBI NBFC licensing.
- Existing savings circles wanting a structured, legal entity to manage member deposits and micro-loans
- Operating Nidhi entities requiring mandatory Form NDH-4 status declarations to avoid regulatory closure.
What to expect from the WCP Professionals
- Pre-Incorporation Compliance Audit: WCP professionals evaluate your founding team against strict statutory thresholds—verifying the ability to onboard 7 initial members, 200 members within Year 1, and ₹10 Lakhs in Net Owned Funds.
- Draft Compliant MOA Objects: WCP professionals draft your e-MOA and e-AOA strictly tailored for mutual benefit finance, excluding forbidden activities like chit funds, hire-purchase, or non-member transactions.
- Execute Public Entity Incorporation: WCP professionals obtain Class 3 DSCs, DINs, and handle the integrated SPICe+ filing to incorporate your entity as a Public Limited Company under the Companies Act.
- File Form NDH-4 for Declaration: WCP professionals draft and submit Form NDH-4 before the Central Registration Centre to secure official government status declaration as a recognized Nidhi Company.
- Resolve Central Registry Queries: WCP professionals prepare detailed legal representations to clear any requisitions raised by the MCA regarding promoter background or deposit structures.
- Deliver Governance & Return Templates: WCP professionals supply formatted member loan/deposit agreement templates and set up your statutory return calendar (NDH-1, NDH-2, NDH-3).
Key deliverables
- Nidhi Legal Feasibility & Compliance Pre-Audit.
- Public Limited Company Incorporation Kit tailored for Nidhi operations.
- Form NDH-4 Status Declaration Filing & ROC Representation.
- Member Loan & Deposit Documentation Formats.
- First-Year Statutory Compliance Calendar (NDH-1, NDH-2, NDH-3).
Standard turnaround time
- Incorporation Phase: 2 to 3 weeks.
- Form NDH-4 Declaration Approval: 2 to 4 weeks.
- NDH-1 Return Filing: Due within 90 days following Year 1 financial end.
Government fees, timelines & key outcomes
- Government Fees: MCA Public Company incorporation fees based on authorized capital and state stamp duty.
- Timelines: Must secure 200 members and ₹10 Lakh Net Owned Funds within 12 months.
- Key Outcome: Officially declared Nidhi entity authorized to conduct mutual benefit finance.
Forms & filings involved
- SPICe+ (INC-32): Incorporation of Public Limited Entity.
- Form NDH-4: Application for declaration as a recognized Nidhi Company.
- Form NDH-1
- NDH-3: Annual and Half-Yearly Statutory Returns.
Documents required
- Identity and Address proofs for at least 3 Directors and 7 Promoters
- Registered Office Address proof, Owner NOC, and Electricity Bill
- Proof of Net Owned Funds and unencumbered bank deposits
- Active Class 3 DSCs for all proposed Directors
What we need from you
- Minimum 7 dedicated founding members.
- Explicit declaration to refrain from taking non-member deposits.
- Execution of statutory compliance forms on time.
Important conditions
- Nidhi entities are barred from conducting chit fund, hire-purchase, leasing, or insurance businesses.
- Failing to secure 200 members within Year 1 leads to loss of Nidhi status.
Additional information
Strict bookkeeping and member registration logs are mandatory, as the MCA actively audits Nidhi financial operations.
The estimated cost covers indicative professional fees only. Government fees, stamp duty and taxes are payable at actuals.
How it works
- 1. Raise a service enquiry describing your requirement.
- 2. A Relationship Manager reviews it and opens it for bidding.
- 3. Pay into escrow and assign the professional you select.
- 4. Track progress to completion, then accept and release payment.
Frequently asked questions
What is a Nidhi company?
A public company formed to cultivate thrift and savings among its members, accepting deposits from and lending only to members.
What are the key Nidhi requirements?
At least 200 members and net owned funds of ₹20 lakh, with an unencumbered-deposit ratio and a net-owned-fund-to-deposit ratio as prescribed.
What is Form NDH-4?
The application to the Central Government for declaration as a Nidhi, filed after meeting the membership and capital requirements.
Can a Nidhi accept deposits from the public?
No. A Nidhi can deal only with its own members.