India's one of the highest-rated legal tax and compliance guidance platform.
4.9 out of 5 (8521+ ratings)
Verified
Siddhu ManojFounder & CEO of Two-LYP Computations Pvt. Ltd.
“Incorporating my Startup with IncorpX was an incredibly smooth and hassle-free experience. The team was highly professional, guiding us every step of the way with clear communication and prompt support. The registration process was fast, and every detail was handled with precision and accuracy. Highly recommend IncorpX for anyone starting a business.”
Abhishek LohaniDirector at Lohani Learnings
“Company is good and service is also smooth. I used their compliance service and the response was timely with no delay and price are also convenient. They are always available to cater your need.”
Chandan Kr. ChaudharyFounder of Creative Minds
“I am very satisfied with the team of IncorpX for providing the top notch services. Team of IncorpX was giving the update on daily basis was one of the best thing which I experience in Corporate. keep doing it. Thank you!”
Jayavijaya SJFounder of Agro Farms
“Don't think twice.Got my company incorporates here. Tbh very impressed by the quality of service provided by this team. Very organized and friendly team. Had a smooth and peaceful experience. Timely regular updates were provided by the team. Overall a great experience.”
Anoop KrishnanFounder of EIGHTH DAY FORGE
“It's rare to find a service provider who makes the process feel personal - IncorpX absolutely did. From day one, they patiently explained every detail without any jargon, making it easy to understand and stress-free. There was zero chasing, no delays-just efficient, smooth execution all the way through. I felt supported, heard, and confident at every step of registering my company EIGHTH DAY FORGE (OPC) Private Limited. Thanks to Mr. Sriram and his wonderful team.”
Ramesh LankeFounder of EKnal Technologies
“IncorpX made the entire registration process for our company, EKnal Technologies, smooth and stress-free. Their team was professional, efficient, and incredibly supportive from start to finish. Highly recommend them to any founder looking for a reliable partner in their business journey! Special shoutout to Sriram and Aswin-your support, clarity, and responsiveness made the whole process incredibly smooth.”
700+
Businesses Incorporated Every Month
1000+
Ratings Trusted by 2000+ Clients
250+
Professional Network
Why Choose Us
Why Choose Us?
Expert Legal Team
Experienced legal experts in company formation and corporate law.
Fast Turnaround
Kickstart your venture with efficient company setup, generally processed within a week.
Dedicated Support
Personal manager by your side, every step of the way and beyond.
Complete Documentation
We handle all paperwork and ensure full legal compliance.
Business Growth Tools
Free business resources to fuel your company's success from day one.
24/7 Customer Service
Round-the-clock assistance for all your concerns.
Ready to Register Your Nidhi Company?
Start your Nidhi Company incorporation with expert CA/CS assistance. SPICe+ filing, NDH-4 compliance, and Rule 3A support from ₹19,999. Stage 1 completed in 12 to 15 working days.
Simple Process
Here's How It Works
01
Fill the Form
Simply fill the above form to get started.
02
Call to discuss
Our startup expert will connect with you & complete legalities.
03
Register Your Nidhi Company Online
End-to-end professional assistance with Nidhi Company incorporation under Section 406 of the Companies Act, 2013 via SPICe+ on MCA V3 portal.
Pricing
Simple & Transparent Pricing
MOST POPULAR
Nidhi Company Registration Package 2026
From ₹19,999 one-time professional fee
Complete within 7 days
7-day turnaround 100% guaranteed
Certificate of Incorporation (CoI) with CIN
Digital Signature Certificate (DSC) for 3 Directors
DIN Allotment for 3 Directors via SPICe+
MoA (INC-33) with Nidhi Object Clause
AoA (INC-34) Drafting and Filing
Company PAN and TAN
GSTIN + EPFO + ESIC via AGILE-PRO
CA/CS Professional Certification
INC-20A Filing Support
NDH-4 Filing Guidance
*Government fees are additional and vary based on company structure
4.9/5 based on 1000+ reviews
Money back guarantee
Secure payment
Top rated service
AI-Powered Platform
Meet IncorpX Nova
Our proprietary AI engine streamlines every step of business setup, from intelligent name suggestions to automated document drafting and compliance tracking.
AI-Powered Business Name Approval Check
Auto-Generated MoA & AoA Drafts
Real-Time Compliance Monitoring
3x Faster Processing Than Traditional CAs
24/7 AI Chatbot + Human Expert Support
NOVA AI
Premium Plan
IncorpX Prime
An all-inclusive solution for startups and expanding enterprises seeking a streamlined, compliant incorporation process.
Key Benefits
Personalised support from dedicated incorporation specialists.
Application prepared and filed within 2 days.
24/7 customer assistance.
Important Notes
We strive to register your preferred business name whenever feasible.
Alternative name suggestions are provided if the preferred name is not approved.
Package includes first-year compliance services: auditor appointment, annual filings, and related obligations.
Key Takeaways: A Nidhi Company requires minimum 7 members, 3 directors, and ₹10 lakh equity capital (post-2022 amendment). Stage 1 registration via SPICe+ takes 12 to 15 working days. Total cost: ₹25,000 to ₹55,000 (varies by state). IncorpX professional fee: ₹19,999. You receive Certificate of Incorporation with CIN, PAN, TAN, DIN, GSTIN, EPFO, and ESIC. Post-incorporation: build 200 members, ₹20 lakh NOF, and file NDH-4 within 120 days.
A Nidhi Company is a public limited company under Section 406 of the Companies Act, 2013, governed by Nidhi Rules, 2014 (amended 2022). Its sole object is cultivating thrift and savings among members by accepting deposits from and lending exclusively to them. It is India's oldest community finance model, rooted in the Tamil Nadu mutual benefit societies that predate independence.
Under Section 406, a Nidhi must be incorporated as a public limited company with a minimum of 7 members, 3 directors, and ₹10 lakh paid-up equity share capital (raised from ₹5 lakh by the 2022 amendment). Its operations are self-contained: deposits accepted only from members, loans extended only to members, against gold, fixed deposits, property, or government securities. Unlike an NBFC, a Nidhi does not require an RBI licence and is regulated solely by the Ministry of Corporate Affairs. Post-incorporation, it must grow to 200 members, build ₹20 lakh in Net Owned Funds, and file NDH-4 within 120 days of meeting these thresholds to obtain Central Government declaration. Rule 3A prohibits deposit acceptance until this declaration is received. For an overview of all entity types, see company registration in India.
Outdated Information Alert: Many online service portals and industry websites still quote ₹5 lakh capital and ₹10 lakh NOF. These are pre-2022 figures. The Nidhi (Amendment) Rules, 2022 (G.S.R. 301(E), notified 19 April 2022) raised the thresholds to ₹10 lakh equity capital and ₹20 lakh NOF. Filing with incorrect capital will result in MCA rejection.
Benefits of Nidhi Company Registration
A Nidhi Company gives community finance founders concrete legal, operational, and tax advantages that informal lending circles and chit funds cannot offer. Here are 8 specific benefits backed by statute and market data.
No RBI Licence Required
Unlike NBFCs that need ₹2 crore NOF and an RBI licence under Section 45-IA, Nidhi Companies are regulated by the MCA. You can accept deposits and lend to members without the 12 to 18 month NBFC licensing process.
Member-Only Operations
All deposits and loans are restricted to members, reducing counterparty risk. Loan defaults can be pursued against known members with KYC on file, making recovery simpler than public lending.
Low Entry Capital
The minimum ₹10 lakh paid-up capital (post-2022) is significantly lower than ₹2 crore for NBFCs. Seven members contributing ₹1.43 lakh each can start a community finance operation.
Separate Legal Entity
A Nidhi is a registered company with its own CIN, PAN, and TAN. It can own property, open bank accounts, and enter contracts independently of its members.
Tax Advantages
Under Section 115BAA, Nidhi Companies pay 22% corporate tax (effective 25.17%) vs individual slab rates up to 30%. Interest income on member loans is classified as business income with standard deductions.
Limited Liability
Members' liability is limited to the face value of their shares. Personal assets of members, including homes and savings, are not exposed to the Nidhi's debts or liabilities.
Community Trust Building
Nidhis encourage financial discipline among communities often underserved by commercial banks. The mutual-benefit model builds local trust and financial literacy. Tamil Nadu alone has over 8,000 registered Nidhis historically.
Self-Regulated Model
Nidhis are exempt from certain provisions of the Companies Act applicable to other public companies (e.g., board meeting frequency rules). This makes governance simpler for small-town promoters running community funds.
Practitioner Insight: Based on 2,500+ company incorporations, the top 3 Nidhi-specific delay causes are: name not ending with "Nidhi Limited" (42% of name rejections), MoA missing the mandatory thrift-and-savings object clause (28%), and incorrect capital amount below ₹10 lakh (19%). Addressing these before filing reduces average Stage 1 time from 15 working days to 12 working days.
Eligibility & Requirements for Nidhi Company (Rule 5, Post-2022)
Section 406 and Rule 5 of the Nidhi Rules, 2014 (as amended in 2022) set specific eligibility thresholds for incorporation. Every Nidhi must be a public limited company with a restricted membership structure. You can also appoint additional directors after incorporation to strengthen governance.
Requirement
Detail
Minimum Members
7 at incorporation (natural persons only)
Minimum Directors
3 (DIN + DSC mandatory for each)
Minimum Paid-Up Capital
₹10 lakh equity share capital (2022 amendment)
Entity Type
Public Limited Company
Name Format
Must end with "Nidhi Limited"
Object Clause
"Cultivate thrift and savings among members"
Post-Incorp Members
Minimum 200 within 1 year
Post-Incorp NOF
₹20 lakh within 1 year
NOF:Deposits Ratio
Not exceeding 1:20
Unencumbered Term Deposits
At least 10% of outstanding deposits
Preference Shares
Not permitted (must be redeemed if outstanding)
Membership Restriction
No minors, HUFs, trusts, or body corporates
Resident Director
At least 1 director stayed 182+ days in India
Critical Accuracy Warning: Many industry websites and service portals still display ₹5 lakh capital and ₹10 lakh NOF, citing pre-2022 rules. The Nidhi (Amendment) Rules, 2022 (G.S.R. 301(E), notified 19 April 2022) raised these to ₹10 lakh equity capital and ₹20 lakh NOF. Filing with the wrong capital amount triggers automatic MCA rejection. Always verify against the official Gazette notification.
Documents Required for Nidhi Company Registration
Prepare these documents before starting SPICe+ filing. All uploads must be colour PDF scans at 300 DPI, under 2MB per file. A Nidhi requires documents for 3 directors and all 7 initial members (subscribers).
For Directors (3 Minimum):
PAN Card (self-attested colour scan; mandatory for all directors)
Aadhaar Card (self-attested, current address for OTP verification)
Passport-Size Photograph (white background, JPEG under 200KB each)
Address Proof (bank statement, electricity bill, or telephone bill; not older than 2 months)
Email ID and Mobile Number (unique per director for MCA communication)
DIR-2 Consent (signed consent to act as director)
INC-9 Declaration (self-declaration: not convicted, not disqualified)
For All 7 Members (Subscribers):
PAN Card (self-attested colour scan)
Aadhaar Card (self-attested, linked to PAN)
Proof of Share Subscription (amount and allocation details for ₹10 lakh total)
For Registered Office:
Utility Bill (electricity, water, or gas; not older than 2 months)
NOC from Premises Owner (on letterhead with signature)
Rent Agreement or Sale Deed
Pro Tip: Avoid MCA Rejection
Upload all documents as colour scans in PDF format under 2MB each. MCA V3 rejects black-and-white scans. Ensure the utility bill shows the exact address intended as the registered office. All 7 subscribers must have valid PAN linked to Aadhaar. The name on PAN, Aadhaar, and bank statement must match character-for-character.
Nidhi Company Registration Cost in 2026
Every cost component is listed below, split between government fees (paid to MCA and state authorities) and professional fees (paid to IncorpX). Use the state-wise stamp duty calculator for your exact state cost. If you need to increase authorised capital later, the process takes 7 to 10 working days.
Component
Amount (₹)
Notes
Government SPICe+ Filing Fee
₹2,000 to ₹3,000
Based on ₹10 lakh authorised capital
Name Reservation (RUN/Part A)
₹1,000
Optional if using SPICe+ Part A directly
DSC (Class 3, 2-year validity)
₹1,500 per person
3 directors required = ₹4,500 total
State Stamp Duty (MoA + AoA)
₹400 to ₹15,000
Varies by state (see table below)
NDH-4 Filing Fee
₹1,000
Post-incorporation; Central Govt fee
NDH-1 / NDH-3 Filing Fees
₹500 each
Annual / half-yearly compliance
PAN + TAN
₹131
Bundled in SPICe+ filing
Professional Fee (IncorpX)
From ₹19,999
Covers SPICe+, MoA, AoA, DIR-2, INC-9, AGILE-PRO
Typical Total (Delhi)
₹28,000 to ₹30,000
DSC + low stamp duty + Starter package
Typical Total (Maharashtra)
₹30,000 to ₹38,000
Higher stamp duty state
State-Wise Stamp Duty for Nidhi Company (₹10 Lakh Capital)
Stamp duty on MoA and AoA is levied per the state Stamp Act and paid electronically via SPICe+ alongside MCA filing fees. Rates vary significantly by state.
State
MoA Duty (₹)
AoA Duty (₹)
Total (₹)
Delhi
₹200
₹200
₹400
Tamil Nadu
₹200
₹300
₹500
Karnataka
₹1,000
₹500
₹1,500
Gujarat
₹100/lakh
₹100/lakh
~₹1,000
West Bengal
₹60
0.15% of capital
~₹1,560
Telangana / AP
₹500
0.15% of capital
~₹2,000
Uttar Pradesh
₹500
0.15% of capital
~₹2,000
Maharashtra
₹200
0.2% of capital (min ₹1,000)
~₹2,200
IncorpX Nidhi Registration Packages
Package
Price (₹)
Includes
Starter
₹19,999
Name reservation, 3 DSCs, 3 DINs, SPICe+ with MoA/AoA, PAN, TAN, INC-20A support
Standard (Recommended)
₹29,999
Everything in Starter + stamp duty (up to ₹5,000), 1-year compliance (NDH-1, AOC-4, MGT-7), DIR-3 KYC, dedicated CS manager
Premium
₹39,999
Everything in Standard + NDH-4 preparation and filing, Rule 3A CG declaration support, NDH-3 half-yearly filings (1 year), threshold-tracker dashboard
Rates are indicative for 2026. Verify current stamp duty at filing on the respective state stamp authority portal.
Pricing Transparency: Government fees are non-negotiable and paid directly to MCA. Stamp duty varies by state and cannot be avoided. Professional fees cover end-to-end filing by a practising CA/CS with full compliance tracking. All government fees are disclosed upfront with a state-specific quote before payment.
IncorpX Filing Guarantee: If your Nidhi Company SPICe+ application is rejected by MCA due to an error in our filing, we re-file at zero additional professional fee. All government fees are passed through at actuals with receipts shared. Our 98% first-attempt approval rate across 350+ Nidhi incorporations is the highest documented rate for this entity type.
Two-Stage Nidhi Company Registration Process
Nidhi Company registration follows a two-stage process with 10 steps. Stage 1 (Incorporation) takes 12 to 15 working days and covers SPICe+ filing on the MCA V3 portal. Stage 2 (Post-Incorporation) spans up to 365 days for building membership and filing NDH-4. Total all-in cost starts from ₹25,000.
Stage 1: Incorporation (Day 1 to 15)
Step 1: Reserve Company Name via SPICe+ Part A
File SPICe+ Part A (INC-32) on MCA V3 portal with 2 proposed names. Both names must end with "Nidhi Limited" as mandated by Section 406. MCA checks availability against existing companies and trademarks. Approval takes 2 to 3 working days. Name reservation is valid for 20 days.
Portal: mca.gov.in | Form: SPICe+ Part A | Time: 2 to 3 working days
Step 2: Obtain Digital Signature Certificates (DSC)
Apply for Class 3 DSC for all 3 proposed directors from a CCA-approved certifying authority. Each DSC costs ₹1,500 and is issued within 1 to 2 working days. DSCs are mandatory for digitally signing SPICe+ Part B and all subsequent MCA filings.
Cost: ₹1,500 per director | Time: 1 to 2 working days
Step 3: Draft MoA, AoA, and Incorporation Documents
Prepare e-Memorandum of Association (INC-33) with the Nidhi-specific object clause under Section 406: "to cultivate the habit of thrift and savings among its members." Draft e-Articles of Association (INC-34), DIR-2 consent letters, and INC-9 self-declarations for all directors and subscribers.
Forms: INC-33, INC-34, DIR-2, INC-9 | Time: 2 to 3 working days
Step 4: File SPICe+ Part B with AGILE-PRO
Complete SPICe+ Part B on MCA V3 with company details, director DINs (auto-allocated), ₹10 lakh authorised and paid-up capital, registered office address, and subscriber details for 7 members. File AGILE-PRO alongside for integrated GSTIN, EPFO, ESIC, and bank account opening. Pay state-specific stamp duty electronically.
Portal: mca.gov.in | Form: SPICe+ Part B + AGILE-PRO | Time: 1 working day (filing)
Step 5: CA/CS Verification and Submission
A practising Chartered Accountant or Company Secretary verifies all documents, signs the declaration under Rule 12 of Companies (Incorporation) Rules, 2014, and submits the complete application digitally with DSC on MCA V3 portal.
Time: 1 working day
Step 6: Receive Certificate of Incorporation
MCA processes the application and issues the Certificate of Incorporation (CoI) with CIN, PAN, and TAN. PAN and TAN are auto-generated. Processing takes 5 to 8 working days from SPICe+ Part B submission. File INC-20A within 180 days to declare commencement of business.
Time: 5 to 8 working days
Stage 2: Post-Incorporation (Day 16 to 485)
Step 7: Open Bank Account and Collect Subscription
Open the company current account using the CoI, PAN card, and board resolution. Collect the ₹10 lakh subscription money from the 7 initial members. This capital forms the foundation for meeting the ₹20 lakh NOF threshold within one year.
Time: 1 to 5 working days
Step 8: Build Membership to 200 and NOF to ₹20 Lakh
Recruit members to reach the minimum 200-member threshold within one year of incorporation. Build Net Owned Funds to at least ₹20 lakh through member deposits and retained earnings. Maintain NOF-to-deposits ratio at or below 1:20 and unencumbered term deposits at 10% of outstanding deposits.
Time: up to 365 days
Step 9: File NDH-4 for Central Government Declaration
Within 120 days of meeting all Rule 5(1) thresholds, file NDH-4 with the Central Government for formal declaration as a Nidhi Company. Government fee is ₹1,000. Under Rule 3A, do not accept deposits or use the word "Nidhi" publicly until NDH-4 is approved or deemed approved after 45 days.
Form: NDH-4 | Fee: ₹1,000 | Deadline: 120 days of meeting thresholds
Step 10: File NDH-1 Annual Declaration
File NDH-1 within 90 days of the end of the first financial year. This is a statutory declaration of compliance with all Nidhi Rules, certified by a practising CA or CS. NDH-1 confirms membership count, NOF, deposit ratios, and adherence to Rule 6 restrictions. Government fee is ₹500.
Form: NDH-1 | Fee: ₹500 | Deadline: 90 days from FY end
Common Mistake: The most critical error is accepting member deposits before obtaining NDH-4 approval. Under Rule 3A (2019 amendment), deposit acceptance without prior Central Government declaration triggers a deposit-acceptance ban and potential strike-off under Section 248. IncorpX's Premium package tracks all thresholds to prevent this.
In-house CA/CS filing. NDH-4 and Rule 3A support available. 98% on-time filing rate.
NDH-4 Filing & Rule 3A: The 120-Day Compliance Window
NDH-4 is the Central Government declaration application that formally recognises your company as a Nidhi. Under the Nidhi (Amendment) Rules, 2022, this filing carries strict timelines and consequences. Most service providers do not explain this requirement, leaving founders exposed to penalties.
NDH-4 must be filed within 120 days of meeting all Rule 5(1) thresholds: 200 members, ₹20 lakh NOF, NOF-to-deposits ratio not exceeding 1:20, and unencumbered term deposits of 10% of outstanding deposits. The government fee is ₹1,000. If the Central Government does not respond within 45 days of filing, the declaration is deemed approved for pre-existing Nidhis.
Rule 3A, introduced by the Nidhi (Amendment) Rules, 2019, adds a critical restriction: your company cannot accept any deposits from members and cannot use the word "Nidhi" in public communications until the Central Government declaration is obtained. Violating Rule 3A invites a ₹5,000 per day penalty, a deposit-acceptance ban, and potential Section 248 strike-off proceedings. To issue shares to new members for meeting the 200-member threshold, you can proceed during this period since share issuance is not classified as deposit acceptance.
What if you cannot meet thresholds within 1 year? File NDH-2 with the Regional Director within 30 days of the financial year end to request an extension. NDH-2 buys additional time and avoids the deposit-acceptance ban under Rule 23A.
MCA Enforcement Data: Over 10,000 non-compliant Nidhis were struck off by MCA between 2022 and 2024 under Section 248. The most common reason was failure to file NDH-4 within the prescribed timeline. IncorpX's Premium package at ₹39,999 includes a threshold-tracker dashboard that sends automated alerts as your Nidhi approaches each Rule 5(1) threshold.
NDH-2 Extension Tip: If your Nidhi cannot meet the 200-member or ₹20 lakh NOF threshold within 1 year, file NDH-2 with the Regional Director within 30 days of the financial year end to request an extension. This preserves your right to accept deposits and avoids the automatic ban under Rule 23A. Government fee is ₹500.
From Our Company Secretary Team: "The biggest shift post-2022 is the NDH-4 mandatory filing. Before the amendment, Nidhis operated informally for years without Central Government declaration. Now, missing the 120-day window is the single largest cause of deposit-acceptance bans. Every founder should plan their membership drive from day one of incorporation, not after receiving the Certificate of Incorporation."
Nidhi vs NBFC vs Cooperative vs Chit Fund vs Producer vs Section 8
Choose Nidhi if you want member-only savings and lending without an RBI licence. Choose NBFC for public financial services. Choose Cooperative for state-regulated agricultural or housing pooling. Compare all six entity types below.
Entity Selection Tip: If your goal is community savings and member-only lending, Nidhi is ideal. If you want to serve the general public, you need an NBFC licence from RBI (₹2 crore minimum, 12 to 18 months processing). For agricultural producers, consider a Producer Company instead.
Free 15-minute consultation. Find the right entity for your community finance venture.
Annual Compliance Calendar for Nidhi Company
After incorporation, a Nidhi Company must meet strict statutory deadlines to remain active and penalty-free. Nidhi-specific filings (NDH-1, NDH-3) are in addition to standard company compliance. Work with IncorpX for ongoing Nidhi Company annual compliance management.
NDH-1 and NDH-3 require mandatory CA/CS certification. The AGM must be held within 6 months of FY end (September deadline for March FY). Statutory audit is mandatory for every Nidhi regardless of turnover. DPT-3 is critical for Nidhis accepting deposits; non-filing attracts both MCA and creditor scrutiny. Annual compliance costs typically range from ₹15,000 to ₹25,000 per year.
Deadline Warning: Missing NDH-1 or NDH-3 deadlines triggers an automatic bar on accepting fresh deposits under Rule 23A. Continuing defaults attract penalties of ₹5,000 per day. The MCA may initiate strike-off under Section 248 for persistent non-compliance. Over 10,000 Nidhis were struck off between 2022 and 2024 for this reason.
Standard and Premium packages include first-year compliance filing. Never miss a deadline.
Advantages and Limitations of Nidhi Company
Advantages:
No RBI Licence: Regulated by MCA, not RBI. Saves 12 to 18 months and ₹2 crore NOF required for NBFC licensing under Section 45-IA.
Low Capital Barrier: ₹10 lakh equity capital vs ₹2 crore for NBFC. Seven members contributing ₹1.43 lakh each can launch a Nidhi.
Tax Efficiency: 22% under Section 115BAA (effective 25.17%) vs up to 30% individual slab rate for unregistered lending circles.
Limited Liability: Members' personal assets are protected. Liability is capped at the face value of shares held.
Separate Legal Entity: Own CIN, PAN, TAN. Can own property, open bank accounts, and enter contracts independently of members.
Community Trust: Mutual-benefit model builds local credibility. Tamil Nadu has 8,000+ registered Nidhis historically, demonstrating proven demand.
Structured Governance: Board of directors, statutory audit, and a compliance calendar ensure accountability and member confidence.
Branch Expansion: After 3 consecutive profitable years, open up to 3 branches in the district and apply for outside-district branches via Regional Director under Rule 10.
Limitations:
Member-Only Operations: Cannot accept deposits from or lend to non-members. Growth is capped by how fast you recruit members.
Strict Compliance Load: NDH-1, NDH-3 (twice yearly), AOC-4, MGT-7, DPT-3, DIR-3 KYC, ADT-1, and statutory audit are mandatory every year. Annual compliance costs ₹15,000 to ₹25,000.
15 Prohibited Activities: Rule 6 bars chit fund, hire-purchase, leasing, insurance, and lending to non-members. Business scope is very narrow.
No Outside-State Branches: Rule 10 prohibits branches outside the state of incorporation. Interstate expansion requires incorporating a separate entity.
Post-2022 Strike-Off Risk: MCA struck off thousands of Nidhis for non-compliance between 2022 and 2024. Missing the NDH-4 deadline triggers a deposit-acceptance ban and Section 248 proceedings.
Nidhi Company Taxation in 2026
A Nidhi Company is taxed as a domestic company. Most Nidhis benefit from Section 115BAA since they do not claim special exemptions or deductions. The concessional 22% rate (effective 25.17% with surcharge and cess) applies for AY 2026-27 under Finance Act 2025. Use the corporate tax calculator to estimate your Nidhi's tax liability under different regimes.
Tax Provision
Rate
Conditions
Default Rate
30%
Domestic company base rate
Section 115BAA
22% + 10% surcharge + 4% cess = ~25.17%
Opted in; no exemptions/deductions
Turnover up to ₹400 crore
25% + applicable surcharge + 4% cess
Without Section 115BAA opt-in
MAT (Minimum Alternate Tax)
15%
Where applicable
Dividend
Taxable in members' hands
At their individual slab rate
Interest income (on loans to members)
Business income
Standard deductions applicable
Member deposit interest paid by the Nidhi is deductible as a business expense. Interest earned on loans to members is taxable as business income. Surcharge applies at 7% if income is ₹1 to ₹10 crore, and 12% if above ₹10 crore. The concessional 22% rate under Section 115BAA is irrevocable once opted, so plan the election with your CA before filing ITR-6.
Free online corporate tax calculator. Estimate your Nidhi's tax liability under Section 115BAA.
Annual director KYC for all 3 Nidhi directors. Deadline: 30 September. ₹5,000 penalty if missed.
Frequently Asked Questions About Nidhi Company Registration
Below are 35 questions sourced from real search queries, MCA guidelines, and our experience incorporating 2,500+ companies. Each answer includes specific data points, relevant Act sections, and ₹ amounts to help you make informed decisions about your Nidhi Company registration.
A Nidhi Company is a public limited company incorporated under Section 406 of the Companies Act, 2013 and governed by the Nidhi Rules, 2014 (amended in 2022). It operates on a mutual-benefit basis, accepting deposits from and lending only to its own members to cultivate the habit of thrift and savings.
Nidhi Companies are regulated by the Ministry of Corporate Affairs (MCA) under Section 406 of the Companies Act, 2013, not by the RBI. They are excluded from most NBFC provisions under Section 45-IA of the RBI Act, 1934 because they deal exclusively with their own members. The RBI retains residual powers but does not issue Nidhi licences.
Under Rule 5 of the Nidhi (Amendment) Rules, 2022, every Nidhi must have a minimum ₹10 lakh equity paid-up share capital at incorporation. This replaced the earlier ₹5 lakh threshold. Post-incorporation, Net Owned Funds must reach ₹20 lakh within one year. Many online portals still quote the outdated ₹5 lakh figure.
Within one year of incorporation, a Nidhi must achieve: 200 members, NOF of ₹20 lakh, NOF-to-deposits ratio not exceeding 1:20, and unencumbered term deposits of at least 10% of outstanding deposits. Failure to meet these triggers an NDH-2 extension application or a deposit-acceptance ban under Rule 23A.
NOF is paid-up equity share capital plus free reserves minus accumulated losses and intangible assets. Every Nidhi must maintain NOF of at least ₹20 lakh and a NOF-to-deposits ratio not exceeding 1:20. Both figures are verified through the NDH-1 declaration filed within 90 days of each financial year end.
The Nidhi (Amendment) Rules, 2022 (notified 19 April 2022) made four key changes: (1) raised minimum equity capital from ₹5 lakh to ₹10 lakh, (2) raised NOF from ₹10 lakh to ₹20 lakh, (3) mandated NDH-4 filing within 120 days of meeting Rule 5(1), and (4) required CG declaration before public use of the word Nidhi.
Under Rule 6 of the Nidhi Rules, 2014, a Nidhi cannot conduct chit fund, hire-purchase, leasing, or insurance business. It cannot accept deposits from or lend to non-members, issue preference shares or debentures, open current accounts with members, advertise for deposits, or pay brokerage for deposit mobilisation. 15 activities are specifically prohibited.
Yes, under Rule 10, but only after 3 consecutive profitable financial years. A maximum of 3 branches are allowed within the same district. Branches outside the district require Regional Director approval, and branches outside the state are not permitted. Branch closure requires 30-day newspaper notice.
A Nidhi Company is not a bank and is not regulated by the RBI. It can accept deposits from and lend only to its own members under Section 406. Banks are licensed by the RBI under the Banking Regulation Act, 1949 and can deal with the general public. Nidhis cannot issue cheque books or participate in the payment system.
No. Under the Nidhi Rules, 2014, membership is restricted to adult natural persons only. Minors (under 18 years), Hindu Undivided Families (HUFs), trusts, partnerships, and body corporates cannot be members. All 7 initial members and subsequent members must provide valid PAN and Aadhaar.
The MCA struck off thousands of non-compliant Nidhis between 2022 and 2024 under Section 248. Strike-off results in the company name being removed from the Register of Companies, directors being disqualified for 5 years under Section 164(2), and all assets vesting in the government. Members lose deposits.
A Nidhi can provide loans only to its members and only against gold, silver, and jewellery (up to 80% of value), fixed deposits with the Nidhi, immovable property (up to 50% of value), and government securities. Unsecured lending is not permitted under Rule 14 of the Nidhi Rules, 2014.
Total cost ranges from ₹25,000 to ₹55,000 depending on state stamp duty and capital. This includes MCA filing fees (₹2,000 to ₹3,000), state stamp duty (₹2,000 to ₹15,000), 3 DSCs (₹4,500), NDH-4 fee (₹1,000), and professional fees starting at ₹19,999 at IncorpX. Maharashtra is the most expensive state for stamp duty.
The MCA charges ₹2,000 to ₹3,000 as government filing fee for SPICe+ based on the authorised capital of ₹10 lakh. Name reservation via SPICe+ Part A costs ₹1,000 if filed separately via RUN. NDH-4 filing carries an additional ₹1,000 government fee payable at the post-incorporation stage.
Stamp duty on MoA and AoA varies by state for ₹10 lakh capital: Delhi ₹400, Tamil Nadu ₹500, Karnataka ₹1,500, Maharashtra ₹2,200+ (0.2% of capital, minimum ₹1,000), Gujarat ₹1,000, West Bengal ₹1,500+ (0.15% of capital), and Uttar Pradesh ₹1,500+. Stamp duty is paid electronically during SPICe+.
IncorpX offers three packages: Starter at ₹19,999 (incorporation only: name reservation, 3 DSCs, SPICe+ filing, PAN, TAN, INC-20A), Standard at ₹29,999 (adds stamp duty up to ₹5,000, 1-year annual compliance, DIR-3 KYC), and Premium at ₹39,999 (adds NDH-4 filing, Rule 3A support, NDH-3 half-yearly filings).
No hidden charges at IncorpX. The three cost components are: (1) professional fee (from ₹19,999), (2) DSC cost (₹1,500 per director, 3 required), and (3) state stamp duty (₹400 to ₹15,000 based on state). Government SPICe+ fee and NDH-4 fee are disclosed upfront. All costs are confirmed before engagement.
A Nidhi is taxed as a domestic company. Under Section 115BAA, the concessional rate is 22% plus 10% surcharge and 4% cess (effective ~25.17%). Without Section 115BAA, companies with turnover up to ₹400 crore pay 25% base rate. MAT is 15%. Member deposit interest is taxed as business income.
IncorpX starts at ₹19,999 vs competing platforms at ₹29,899+ to ₹39,999+. We reduce costs with in-house CA/CS teams (no outsourcing markup), bulk DSC procurement, and technology-driven filing. Additionally, our Standard and Premium packages bundle stamp duty and compliance that other platforms charge separately.
Yes. The Premium package at ₹39,999 includes complete NDH-4 preparation, Central Government declaration filing within 120 days of meeting Rule 5(1) thresholds, Rule 3A compliance tracking, and NDH-3 half-yearly returns for the first year. This is the only package in the market that bundles post-incorporation NDH-4 support with registration.
Annual compliance costs approximately ₹15,000 to ₹25,000 per year covering NDH-1 (₹500 fee), two NDH-3 filings (₹500 each), AOC-4 (₹300 to ₹600), MGT-7 (₹300 to ₹600), DIR-3 KYC for 3 directors, DPT-3 deposit return, ADT-1 auditor appointment, and statutory audit fees.
File SPICe+ Part A on MCA V3 (mca.gov.in) for name reservation, then SPICe+ Part B with e-MoA (INC-33), e-AoA (INC-34), DIR-2, INC-9, and AGILE-PRO. MCA issues CoI with CIN, PAN, and TAN in 5 to 8 working days. Post-incorporation, file INC-20A within 180 days and NDH-4 within 120 days of threshold compliance.
NDH-4 is the application to the Central Government for formal declaration as a Nidhi Company. Under the Nidhi (Amendment) Rules, 2022, it must be filed within 120 days of meeting Rule 5(1) thresholds (200 members, ₹20 lakh NOF, 1:20 ratio). Government fee is ₹1,000. Prior to NDH-4 approval, deposits cannot be accepted.
Rule 3A (introduced by the Nidhi Amendment Rules, 2019) requires a company to obtain prior Central Government declaration via NDH-4 before using the word Nidhi publicly or accepting any member deposits. Ignoring Rule 3A invites a deposit-acceptance ban and potential strike-off under Section 248. Most service portals do not explain this requirement.
Director documents: PAN card, Aadhaar card, passport-size photo, address proof (bank statement or utility bill under 2 months), DSC, DIR-2 consent, INC-9 declaration. Office documents: utility bill under 2 months, NOC from owner, rent agreement. Company documents: 2 proposed names ending Nidhi Limited, object clause draft, subscriber sheet for 7 members.
Stage 1 incorporation takes 12 to 15 working days: 2 days for DSC, 2 to 3 for name approval, 2 to 3 for document drafting, and 5 to 8 for MCA SPICe+ processing. Stage 2 (post-incorporation) takes up to 365 days to build 200 members and ₹20 lakh NOF, followed by NDH-4 filing within 120 days of crossing thresholds.
Every Nidhi Company name must end with Nidhi Limited as mandated by Section 406 and Rule 4. The name is reserved via SPICe+ Part A with 2 proposed options. MCA rejects names matching existing companies, containing restricted words (National, Indian), or lacking the Nidhi Limited suffix. Name reservation is valid for 20 days.
INC-20A is the declaration for commencement of business, filed within 180 days of incorporation after collecting the full subscription money (₹10 lakh). Non-filing attracts a ₹50,000 penalty on the company and ₹1,000 per day on directors. The MCA may also initiate strike-off proceedings for non-commencement.
A Nidhi deals only with its own members and is regulated by the MCA under Section 406. An NBFC deals with the general public and is licensed by the RBI under Section 45-IA of the RBI Act, 1934. NBFCs need minimum ₹2 crore NOF; Nidhis require only ₹20 lakh. Nidhis cannot operate chit funds, leasing, or hire-purchase.
Cooperative Societies are registered under state Cooperative Societies Acts (or the Multi-State Cooperatives Act, 2002) and regulated by state Registrars. Nidhis are incorporated under the Companies Act, 2013 and regulated nationally by the MCA. Nidhis have stricter audit, capital (₹10 lakh), and filing norms (NDH-1, NDH-3, AOC-4, MGT-7).
Chit Funds are governed by the Chit Funds Act, 1982 and operate on periodic subscription-auction cycles open to the public. Nidhis are prohibited from conducting chit fund business under Rule 6. Nidhis accept regular deposits and provide loans only against gold, FDs, property, or government securities, exclusively to their own members.
A Nidhi suits member-based savings and lending for individual thrift. A Producer Company under Part IXA of the Companies Act is for agricultural producers pooling resources for marketing, processing, and procurement. Choose Nidhi for deposit and lending; choose Producer for agricultural produce value chains.
Nidhi Company registration in Chennai follows the same MCA V3 online process. Your Nidhi is registered under RoC Chennai (Shastri Bhawan, 26 Haddows Road, Chennai 600006). Tamil Nadu stamp duty on MoA and AoA is ₹500 for ₹10 lakh capital, the lowest among major states. IncorpX has a dedicated southern India desk for Nidhi filings.
Maharashtra charges ₹200 on MoA plus 0.2% of authorised capital on AoA (minimum ₹1,000). For ₹10 lakh capital, total stamp duty is approximately ₹2,200. The Nidhi is registered under RoC Mumbai. Maharashtra has the highest stamp duty among major states for Nidhi registration.
Nidhi Companies in Bengaluru are registered under RoC Bangalore (2nd Floor, Kendriya Sadan, Koramangala, Bangalore 560034). Karnataka stamp duty is ₹1,500 (₹1,000 on MoA + ₹500 on AoA) for ₹10 lakh capital. IncorpX handles Bengaluru Nidhi registrations with local office verification and CA-assisted filing.
The team was very responsive and helpful. I received daily updates from the WhatsApp group, and their guidance made everything much simpler to comprehend. If you want a simple and hassle-free way to launch your business, I would highly recommend them!
S
Simon Job
4.9/5
I recently used IncorpX to register my limited liability partnership, and I had an amazing experience! There were no hidden fees, and the team was helpful, quick to respond, and open. They provided thorough explanations of each step, and their services are reasonably priced without sacrificing quality. The entire process was made simple by IncorpX's professionalism, attention to detail, and sincere support. Strongly advised!
J
Jay R
4.8/5
The experience was flawless; the team completed each task with care and always responded quickly. Throughout the process, I never felt stuck. We would especially like to thank Saksham and Sriram for making everything run so smoothly! The IncorpX team offers extremely competitive pricing; anyone just starting out should definitely get in touch with them.
M
Mohammed Affan
4.9/5
I'm really grateful to the wonderful team at IncorpX for helping bring my co-founder's and my dream to life. The whole process was super smooth - fast service, great support, and no hassles at all. I'd highly recommend IncorpX to any new entrepreneur or founder looking to register their company. Excited to continue working with them in the long run. Thank you, IncorpX!
R
Riyom Taipodia
4.6/5
One of the best agency I have ever experienced. Team members are very friendly as if we know each other from before and came communicate and share easily. My work has been done in a very short period and I am so happy. Thank you so much.
A
Ayyappa Swamy
5/5
Highly recommend... IncorpX services regarding incorporation of our company and roc filing and all are very impressive.. the team IncorpX is polite and friendly. Our Lands Time pvt ltd has incorporated through IncorpX... And thanks to IncorpX team..
R
Ramesh Babu
4.9/5
Trouble free service, Rendering good co-operation for company incorporation. Trust worthy team to have better knowledge.
P
Pravesh Kudesia
5/5
IncorpX is providing best service... And user experience! Thank You IncorpX Team
B
Balaji Gutte
4.9/5
I recently got my Private Limited Company incorporated through IncorpX, and the experience was seamless! The team was professional, supportive, and quick to respond throughout the process. Highly recommend IncorpX for a smooth and stress-free company registration experience.
D
Dia
5/5
I'd been planning to register my Private Limited Company for months but didn't know where to start - until I found IncorpX. The team guided me step by step, explained everything clearly, and completed the registration smoothly within the promised timeline. Their pricing was transparent with no hidden charges. Highly recommend IncorpX to anyone starting a business!
Trusted by 15,000+ Entrepreneurs
Get Expert Guidance for Your Business
Fill out the form and our team will connect with you to understand your requirements and recommend the best way forward.
