Nidhi Company — Registration, NDH-4 and Compliance after MCA's 24 September 2026 Advisory

Quick answer: A Nidhi is a public company under Section 406 of the Companies Act that takes deposits from and lends only to its members. Under the Nidhi Rules 2014 as amended in 2022 it needs ₹10 lakh paid-up equity, must reach 200 members and ₹20 lakh net owned funds within a year, keep NOF-to-deposits at no worse than 1:20, and file NDH-4 within 120 days to be declared a Nidhi — only after that can it use the 'Nidhi' suffix. MCA's advisory of 24 September 2026 warned the public that many companies operating as Nidhis never filed NDH-4, that only 395 firms have been declared Nidhis, and that Nidhi deposits are not DICGC-insured. We incorporate, file NDH-4 on time and run the NDH-1/NDH-3 calendar.

Last verified 4 October 2026 — rules on this page checked against the current notifications. We update it the day a rule changes.

The rules in numbers

Requirement	Rule
Form	Public limited company; 7 subscribers, 3 directors
Paid-up equity	₹10 lakh (2022 amendment)
Within one year	200 members and net owned funds ₹20 lakh
Declaration as Nidhi	NDH-4 within 120 days of meeting the tests; no "Nidhi" suffix until approved (MCA letter of 12 April 2024 applied by ROCs)
Prudential	NOF : deposits ≤ 1 : 20; 10% of deposits in unencumbered term deposits
Returns	NDH-1 (annual), NDH-3 (half-yearly), plus AOC-4 / MGT-7 — see ROC compliance
Business	Deposits and loans with members only; no chit funds, hire purchase, insurance or securities business

MCA advisory, 24 September 2026 (PIB Delhi): only 395 firms have been declared Nidhis to date; many companies calling themselves Nidhis never filed NDH-4; deposits with Nidhis are not insured by DICGC. The list of declared Nidhis is on the MCA site. Practically: a Nidhi that has not been declared cannot lawfully raise deposits, and a High Court has already set aside an NDH-4 rejection made without a hearing — so a rejected NDH-4 is appealable, not final.

What we do

Incorporation on MCA V3 with Nidhi-restricted objects; member and NOF plan to hit 200 / ₹20 lakh inside the year
NDH-4 within the 120-day window with the member register and NOF computation; representation if the RD/ROC raises queries
NDH-1/NDH-3 calendar, deposit-ratio monitoring and branch rules; event filings and annual returns

MCA form fees are quoted from the Companies (Registration Offices and Fees) Rules at filing; figures above are from the Nidhi Rules as amended and MCA's 2026 advisory.

Talk to us before you file anything

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Frequently asked questions

What is the minimum capital for a Nidhi company?

₹10 lakh paid-up equity at incorporation; net owned funds of ₹20 lakh must be reached within one year.

How many members does a Nidhi need?

Seven subscribers to incorporate; at least 200 members within one year.

When is NDH-4 filed?

Within 120 days of meeting the 200-member and ₹20 lakh NOF tests under the 2022 amendment; only an approved NDH-4 makes the company a declared Nidhi.

Can I use 'Nidhi Limited' in the name at incorporation?

No — ROCs allow the suffix only after NDH-4 approval.

Are deposits with a Nidhi insured?

No. MCA's 24 September 2026 advisory states Nidhi deposits are not DICGC-insured.

How do I check whether a Nidhi is genuine?

Check MCA's list of declared Nidhis — only 395 firms had been declared as of September 2026.

Can a Nidhi lend to non-members or advertise deposits?

No — business is restricted to members, and soliciting deposits from the public is prohibited.

Which returns does a Nidhi file?

NDH-1 annually, NDH-3 half-yearly, and the usual AOC-4 and MGT-7.