by CA V. Viswanathan
FCA, ACS, CFE, Registered Valuer (S&FA) | Since 2012
Check eligibility, compliance requirements, and restrictions for forming a Nidhi Company under Companies Act, 2013 and Nidhi Rules, 2014 (as amended 2019, 2023).
Nidhi companies under Section 406 of the Companies Act 2013 are mutual benefit societies that accept deposits from and lend only to their own members. They are restricted from external borrowing, derivative instruments, advertising for deposits, and operating outside their state of registration without specific exemption.
Nidhi Rules 2014 prescribe specific compliances: minimum 200 members within 1 year of incorporation; net owned funds (NOF) of at least ₹10 lakh; NOF-to-deposit ratio not exceeding 1:20; only specified types of loans (against gold, immovable property, FDR, etc.). Annual NDH-1, NDH-3 filings and continuous Master Directions compliance applies.
This tool provides indicative output based on declared inputs. For complete advisory or compliance execution including any required regulatory filings, certifications, or representation, consult CA V. Viswanathan — FCA, ACS, CFE, IBBI Registered Valuer (IBBI/RV/03/2019/12333) — at +91 99622 60333. Free 30-minute consultation, with detailed scope and fixed-fee quote within 24 hours.