Nidhi Company — Glossary

◈Definition

A Nidhi Company is a mutual-benefit company that accepts deposits from and lends to its members only. It is regulated under Section 406 of the Companies Act 2013 and the Nidhi Rules 2014. A Nidhi Company must have at least 200 members within one year of incorporation, net-owned funds of at least ₹10 lakh, and a ratio of net-owned funds to deposits not exceeding 1:20. Nidhis are most common in South India.

◉See also

Private Limited Company (PTC)(PTC)
The default legal form for Indian companies — limited liability, restricted share transfer, 2–200 members.
Section 8 Company
A non-profit company formed under Section 8 of the Companies Act for charitable or social purposes.

⬢Related guide

Types of Indian Companies — Private, Public, OPC, Section 8 and More
Private limited is the default, but Indian companies come in many legal forms. Here's a practical guide to the ones you'll encounter on MCA.

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The CorpIntel team — editors, researchers, and Company Secretaries working across Indian corporate intelligence, incorporations, and compliance.

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