The National Dairy Development Board has been constituted as a body corporate and declared an institution of national importance by an Act of India's Parliament.

The National Dairy Development Board -- initially registered as a society under the Societies Act 1860 -- was merged with the erstwhile Indian Dairy Corporation, a company formed and registered under the Companies Act 1956, by an Act of India's Parliament - the NDDB Act 1987 (37 of 1987), with effect from 12 October, 1987.  The new body corporate was declared an institution of national importance by the Act.

The general superintendence, direction, control and management of NDDB's affairs and business  vests with the Board of Directors.