Current 2026 Nidhi company registration guide: public company setup, ₹10 lakh equity capital, 200 members, ₹20 lakh NOF, NDH-4 and MCA approval.
Last verified: 28 September 2026. A new public company that wants to be declared a Nidhi must follow the post-2022 framework. It must apply in Form NDH-4 within 120 days of incorporation, and at that stage meet the conditions of at least 200 members and Net Owned Funds (NOF) of ₹20 lakh or more. MCA approval is central to the process.
Older guides that say “incorporate a Nidhi first and get 200 members within one year” can be misleading for companies incorporated under the amended framework.
A Nidhi is a mutual-benefit company whose core object is to cultivate thrift and savings among members and to receive deposits from and lend to members only for their mutual benefit.
It operates under section 406 of the Companies Act, 2013 and the Nidhi Rules.
It is not a general public deposit-taking finance company.
A Nidhi is incorporated as a public company and its name must end with “Nidhi Limited.”
As a public company, incorporation ordinarily requires the Companies Act’s minimum public-company structure, including at least:
However, the special Nidhi declaration conditions quickly become much stricter.
The Nidhi (Amendment) Rules, 2022 substituted the earlier ₹5 lakh requirement with:
₹10 lakh minimum paid-up equity share capital
Existing Nidhis were given the transition specified in the amendment; new applicants should structure capital under the current rule.
Under Rule 3B inserted by the 2022 amendment, a public company incorporated after commencement of the amended framework and seeking declaration as a Nidhi must apply in Form NDH-4 within 120 days of incorporation if it meets:
The company must also satisfy the fit-and-proper requirements applicable to promoters under the rule.
This is a major change from older Nidhi-registration articles.
The amended rule provides a decision framework for Form NDH-4.
MCA’s notification states that the Central Government will examine the application and communicate its decision within the prescribed period. The rule also provides for deemed approval in the specified circumstance if a decision is not taken within the stated period.
Most importantly, a company should not represent itself as an approved Nidhi merely because it has incorporated a public company with “Nidhi” in the proposed structure.
The 2022 rule links commencement of Nidhi business with Central Government approval under the declaration process.
A company should not start accepting deposits/lending as a Nidhi without satisfying the current declaration requirements.
Nidhi Rules also regulate matters such as:
The detailed limits should be checked against the latest consolidated Nidhi Rules before transactions are launched.
A Nidhi is not intended to operate like a universal finance marketplace.
Its business is fundamentally member-based.
The Rules restrict a range of activities and financing structures. The 2022 amendments also tightened the framework, including restrictions connected with raising funds from banks/financial institutions for onward lending to members.
Nidhi Formation Roadmap
Public company planning
Structure subscribers, directors, capital and objects.
Name and incorporation
File company incorporation through MCA with compliant Nidhi objects/name.
Build member base
Reach at least 200 members within the Rule 3B timeline.
Meet NOF
Maintain Net Owned Funds of at least ₹20 lakh for the declaration application.
File NDH-4
Submit within 120 days with required declarations and fit-and-proper information.
Await approval
Do not commence regulated Nidhi deposit/lending business contrary to the amended rule.
Post-approval compliance
Maintain Nidhi Rules requirements and MCA filings.
| Requirement | Current rule |
|---|---|
| Minimum paid-up equity share capital | ₹10 lakh |
| Members for Rule 3B declaration | 200 |
| Net Owned Funds for Rule 3B declaration | ₹20 lakh |
| NDH-4 filing timeline for new applicant | Within 120 days of incorporation |
Because the post-2022 Nidhi framework is stricter than older online guides, review the current rules before incorporating or soliciting members.
Information note: Nidhi compliance is regulatory and fact-specific. This guide is an overview and not a substitute for professional review of the latest consolidated rules and MCA filings.
This article is published by TaxQue (ARB FinTech LLP) for general informational, educational, and business guidance purposes only. Tax laws, GST rules, MCA circulars, and judicial precedents are subject to frequent statutory revisions. This content does not constitute formal individualized tax, accounting, or legal counsel.
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