Nidhi Company Registration Process and Timeline: Incorporation, then the 120-Day Path to NDH-4

Last updated 26 September 2026

How long does Nidhi company registration take?

Nidhi company registration has no single number of days, because it runs in two stages with different clocks. The incorporation stage depends on name approval, documents and MCA queries. The NDH-4 stage has a statutory clock: file within 120 days of incorporation, and the Central Government decides within 45 days.

Say Meera incorporates her company on 1 March. Her 120-day window to file NDH-4 closes around 29 June. If she files on the last day and the Centre takes the full 45 days, the decision point falls around mid-August. On paper, that is roughly 165 days from incorporation to approval. Her real challenge is not the waiting; it is gathering 200 members and at least ₹20 lakh in Net Owned Funds before the 120 days end.

Many blogs still say "within one year" for members and NOF. That describes the older regime for companies incorporated before 19 April 2022. For newer companies, the 120-day rule applies. For the general incorporation timeline, see how long company registration takes in India.

What are the steps to register a Nidhi company?

The Nidhi registration process has eight steps, from choosing directors to receiving the Nidhi declaration. Steps 1 to 4 are incorporation, and steps 5 to 8 are the Nidhi declaration.

1. Gather founders. A Nidhi is a public company, so you need at least 3 directors and 7 members to incorporate.
2. Prepare documents and DSC/DIN. KYC, office proof, DSC and DIN for directors. See the documents checklist.
3. File SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus) on the MCA portal, with a Nidhi-compliant MOA and AOA, along with the linked PAN and TAN application.
4. Receive the Certificate of Incorporation. The company now exists as a public company.
5. Build the member base and NOF. Admit members and collect equity so that you have 200 members and ₹20 lakh Net Owned Funds.
6. File Form NDH-4 within 120 days of incorporation, with the fit-and-proper declaration of all promoters and directors.
7. Wait for the decision. The Central Government conveys its decision within 45 days; if it does not, the application is deemed approved.
8. Notification and INC-20A. The declaration is notified in the Official Gazette, and the company files the approval with the Registrar along with Form INC-20A.

The company may commence business as a Nidhi only once the approval is obtained.

What is the Nidhi registration timeline at a glance?

The table below puts the statutory clocks side by side. Only the 120-day and 45-day periods are statutory; the incorporation stage varies, so we do not promise a number of days for it.

The rules state the 45-day window, but we could not find an official average for how long approvals take in practice, so we do not quote one. Figures are as of September 2026.

What must be ready before the 120 days end?

Before day 120 you must have at least 200 members, at least ₹20 lakh in Net Owned Funds, and a fit-and-proper declaration from every promoter and director. The Nidhi Rules text has no extension clause for this 120-day period, so plan to be ready rather than to ask for more time.

That is why the calendar, not the filing, is the hard part. Members have to be admitted, KYC-verified and enrolled, and they must subscribe enough equity to reach the NOF. NOF does not count money from preference share capital. If you are short on either number at day 100, do not file hoping it will pass. Speak to a CA about the options first.

For a fuller explanation of each requirement, read Nidhi company requirements: members and Net Owned Funds. For the NDH-4 form itself, see the NDH-4 declaration process.

What happens if you miss the NDH-4 deadline or are rejected?

If a company does not comply with the NDH-4 requirement, it cannot file Form SH-7 (alteration of share capital) or Form PAS-3 (return of allotment). In practice that means it cannot increase capital or allot shares normally. A company whose NDH-4 is rejected or fails to comply also cannot raise deposits from or give loans to members under the Nidhi Rules.

Deposits raised after that point are treated under the ordinary public-deposit rules in Chapter V of the Companies Act, which are much stricter. This is why the deadline is more than a formality. We cover consequences in more detail in the guide to the NDH-4 declaration process.

Also note that the MCA issued a public advisory on 24 September 2026, reported by multiple outlets, saying that its examination of NDH-4 applications found several companies had failed to file in time. The regulator is watching this area.

What delays the Nidhi registration process?

Four things most often slow a Nidhi registration: name objections, document mismatches, difficulty reaching 200 members, and directors who fail the fit-and-proper test.

• Name and objects. The name must be available, and the words "Nidhi Limited" can be used only once the company is declared a Nidhi. The objects must match the Nidhi's sole permitted purpose.
• Document mismatches. Spelling differences between PAN and Aadhaar are the classic cause of MCA queries.
• Member build-up. Recruiting genuine members inside 120 days is slower than most founders expect.
• Director limits. A person who is already a director in 5 or more Nidhis, or a promoter of 3 or more, fails the fit-and-proper test.

Companies incorporated before 19 April 2022 follow a different NDH-4 timetable, so check your date of incorporation before you follow any checklist.

Should you handle the process yourself or use a CA?

You can run the whole process yourself, since both SPICe+ and NDH-4 are filed online. The question is whether the Nidhi-specific drafting and the tight 120-day clock are worth carrying alone.

Shunya's Nidhi page describes the incorporation stage: your details, then a CA who verifies documents, obtains DSC and DIN, prepares SPICe+ with a Nidhi-compliant MOA and AOA, files it on the MCA portal along with the PAN and TAN application, handles officer queries, and delivers the Certificate of Incorporation. A practising Chartered Accountant reviews every filing. The professional fee is ₹1,999, and the DSC issuer's charge, government fees, stamp duty and other statutory costs are billed separately. If you want help with the NDH-4 stage, ask on the callback so the scope is agreed first. See the cost breakdown for detail.

Start with a free callback (name and phone) on the Nidhi registration page, or pay online. You can also WhatsApp or call +91 80809 18797.

This article is for general information only. For your specific situation, consult a practicing CA.