Startup & Business
Nidhi Company — Meaning
A mutual-benefit company that accepts deposits from and lends only to its members.
What is Nidhi Company?
A Nidhi is a public company formed under Section 406 of the Companies Act to cultivate thrift among its members. After incorporation it must, within 120 days, have at least 200 members and net owned funds of ₹20 lakh, and apply in Form NDH-4 to be declared a Nidhi. It can accept deposits only from members, lend only to members against specified security, and must keep its net owned funds to deposits within 1:20.
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More Startup & Business terms
MCA (Ministry of Corporate Affairs)
India's government ministry administering the Companies Act and registering companies through the MCA portal.
ROC (Registrar of Companies)
Government authority under MCA that registers companies and LLPs and maintains statutory records.
DIN (Director Identification Number)
Unique 8-digit number assigned to every director of a company in India.
DSC (Digital Signature Certificate)
Electronic signature issued by certifying authorities — required for filing company/LLP documents with MCA.
Private Limited Company
A separate legal entity incorporated under the Companies Act 2013 — most common startup structure.
