What is Nidhi Company

NIDHI COMPANY means a company which is governed by the Section 406 of the Companies Act,2013 with Nidhi rules, 2014 which is enforced by the legislation for the regulation of Nidhi Companies.

NIDHI COMPANY in India is only incorporated with a single objective or purpose to cultivating the habit of thrift and savings among its own members.

PREREQUISITES FOR INCORPORATION OF NIDHI COMPANY: –

Prerequistes For Incorporation of Nidhi Company

ADVANTAGES OF NIDHI COMPANY: –

Advantages of Nidhi Company

CHECKLIST OF DOCUMENTS WHICH ARE REQUIRED FOR NIDHI COMPANY: –

Checklist of Documents Which Are Required For Nidhi Company

ELIGIBILITY OF BECOMING DIRECTOR OF NIDHI COMPANY: –

Eligibilty of Becoming Director of Nidhi Company

TENURE OF DIRECTOR: –

Tenure of Director

Nidhi Limited Company registration

A SIMPLIFIED PROCESS OF INCORPORATION OF NIDHI COMPANY IS GIVEN AS FOLLOWS: –

A Simplified Process of Incorporation of Nidhi Company

 ATTACHMENT OF THE FORM IS: –  

1)     Memorandum Of Association Of Company
2)     Article Of Association Of Company
3)     AGILE Form
4)     ID Proof Of Directors
5)     Address Proof Of Directors.
6)     PAN Card Of Subscribers
7)     Address Proof Of Registered Office Of Company In The Form Of Rent Agreement Or Registry Or Electricity Or Any Other Utility Bill With No Objection Certificate From Owner.
8)     Consent And Declaration From Directors In Form DIR-2.
9)     Affidavit In The Form Self Declaration In Form INC-9

General Restrictions on Nidhi Company

Restrictions On Nidhi Company By The Government That They Are Not Eligibl

AFTER INCORPORATION OF NIDHI COMPANY.THERE IS A NEED OF DOING SOME IMPORTANT COMPLIANCE WITH IN A TIME PERIOD THAT IS GIVEN BELOW: –

 ⇓

 1)      With in a period of one year from the date of incorporation of Nidhi company, the company has to ensure that it has not less than 200 members. 
2)      They have to maintained their own net owned fund i.e. paid up share capital and free reserve of an amount of 10 lakh rupees after deducting accumulated losses and intangible assets which are appearing in the last audited balance sheet of the company. 
3)      They have to ensure that they have unencumbered term deposits of not less than 10 % of the outstanding deposits as specified in the rule no.14 of the Nidhi rules 2014. 
4)      They have also to ensure that the ratio of net owned funds deposits of not more than 1:20. 

SPECIAL NOTE 1:-

The amount which represent the proceeds of issue of preference shares shall not be included when we calculate net owned funds.

SPECIAL NOTE 2:-

DIVIDEND COMPLIANCE :-

1)      Governed by the provisions of the Nidhi rules,2014.

2)      They shall not declare dividend exceeding the rate of 25% or such higher amount as may be specifically approved by the RD  for the reasons to be recorded in writing and subject to such conditions:-

A)    An equal amount transferred to general reserves.

B)     Not doing any default in repayment of matured deposits and interest.

C)    Complied all Nidhi rules ,2014.

Saving Account

GENERAL POINTS OF NIDHI COMPANY: –

1)      Nidhi company have to give locker Facilities to the Members on Rent but the Rental Income does not Exceeded 20 % of Gross Income of the Nidhi at any point of time during a Financial Year.
2)       They cannot acquire in other Company unless Special Resolution is passed and obtained previous approval of the RD having jurisdiction over such Nidhi company.
3)       Advertisement for taking Deposit is prohibited but private circulation to members not consider as advertisement for soliciting deposit.
4)       Every Nidhi company shall issue fully paid up equity shares of the nominal value of not less than 10 rupees each.
5)       No service charge shall be levied for the issue of shares.
6)      Minimum 10 equity shares or shares equivalent to 100 rupees to each deposit holder.
7)       Not eligible for open a current bank account with its members.
 8)       Nidhi not eligible for open a branch or anything outside the state, where registered office is situated.
 9)       There is no need to take RBI approval letter for incorporation because RBI exempt Nidhi companies from their compliances.
 10)   There is no need to take rbi approval letter for incorporation because rbi exempt Nidhi companies from their compliances.
11)   They can eligible for open up to 3 branches within the district subject to certain condition.

Prescribed forms for Nidhi Companies

There are some prescribed form for the compliances of Nidhi Company that are given below: –

FORM NDH-1

 

Every Nidhi company within 90 days from the close of its first financial year after its incorporation or other year as per applicability have to file a return of statutory compliance which is certified by a practising professional (CS/CA/CWA)  along with fees which is prescribed in the Companies (Registration Offices & Fees) Rules,2014 

FORM NDH-2

 

 

Any Nidhi company for which it is not possible to comply the minimum 200 members requirement within a one year from the date of incorporation.so they can apply for the extension of time period for comply this requirement to the regional director  within 30 days from the closing of first financial year  along with fees in FORM NDH-2 ……after considering the request of extension of time on reasonable ground the RD may consider and pass order within 30 days of receipt of application  for extension of time period for this compliance up to 1 year from the date of receipt of application.in case Nidhi company not apply for this extension so they are not eligible for accepting deposit and they also have to bear huge penalty. 

FORM NDH-3

As per Rule 21 of the Nidhi Rules 2014, Every Nidhi Company should file their half yearly return in Form No.NDH-3 along with fees within 30 days from the conclusion of each half year  with certification by a Practicing Professional (CA/CS/CWA). 

FORM NDH-4

For Taking The Status Of Nidhi Company This Form Is Used By The Public Company.

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Qualification: Student - CA/CS/CMA
Company: NEHA G.& ASSOCIATES (PCS FIRM)
Location: DELHI, New Delhi, IN
Member Since: 26 Jan 2020 | Total Posts: 4

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