‘Nidhi’ means a company which has been incorporated for cultivating the habit of thrift and savings amongst its members. Nidhi Company is a company registered under Companies Act and notified as a Nidhi company by Central Government .It is a non-banking finance company doing the business of lending and borrowing with its members or shareholders.
|1.||Incorporation||♦ Nidhi Company shall be incorporated as a Public Company
♦Minimum Paid up Equity Share Capital-5 Lakh Rs.
♦ The company is restricted to issue any type of preferences shares
|2.||Membership||♦ The company shall have a minimum of 200 members within 1 year from the date of incorporation and maintain the same throught.
♦ Minor, Body corporate or Trust cannot be a member
|3.||Directorship||♦ All director shall be the member of the Company
♦ Director shall hold office upto 10 consecutive years
|4.||Minimum Requirement to be fulfilled every time||♦ The company shall within 1 year form the incorporation and thereafter shall:
1. Have atleast 200 members at a time
2. Net Owned Fund of 10 Lakh or more
3. unencumbered term deposits of not less than ten per cent. of the outstanding deposits
4. ratio of Net Owned Funds to deposits of not more than 1:20.
|5.||Loan Provision||♦ The company shall provide loan only to its members subject to the limits as prescribed under Act
♦ Member cannot avail further loan if the earlier loan has not been repaid
♦ Loan is provided against the following securities: –
1. Gold, Silver Jewellery
2. Immovable Property
3. fixed deposit receipts, National Savings Certificates, other Government Securities and insurance policies
♦ The rate of interest on the loan shall not exceed 7.5% above the highest rate of interest offered on deposits.
|6.||Declaration of Dividend||The company shall not declare dividend exceeding 25 % OR such higher amount prescribed by RD|
|7.||Auditor||The company shall have an auditor who shall be appointed as follows: –
♦ Individual- 5 years (1 term)
♦Firm -10 years (2 term)
|8.||Branches||♦ Nidhi company can open upto 3 branches wthin the district only if it has earned Net Profit for 3 consecutive years and filed its financials and annual return to ROC.
♦ Nidhi company cannot open branch outside the state where its RO is situated
|9.||Half Yearly and Annual Filing Forms||♦Every company shall file FORM NDH-3 (half yearly return) within 30 days from the conclusion of each half year
♦Every company shall file AOC-4 within 30 days from the conclusion of AGM
♦Every company shall file MGT-7 within 60 days from the conclusion of AGM
|10.||Statutory return form to be filed||♦ Every company shall within 90 days from the closure of 1 FY or 2 FY after incorporation shall file FORM NDH-1 stating that it has complied with the minimum requirement
♦ If the company is unable to fulfil the minimum requirement, then it shall file FORM NDH-2 to RD within 30 days from the closure of first FY for seeking extension to fulfil the requirement.
|11.||Application for Declaration as Nidhi Company||♦ All the companies which are incorporated after the Nidhi (Amendment) Rules, 2019. Such companies shall file Form NDH-4 within 60 days from the date of expiry of
1. one year of Incorporation
2. the period up to which extension of time has been granted by the Regional Director
|12.||Consequences of Non-filing of NDH-4:||In case a company does not comply with the requirements of this rule, it shall not be allowed to file Form No. SH-7 (Notice to Registrar of any alteration of share capital) and Form PAS-3 (Return of Allotment).|
*For brief understanding kindly refer the Section and Rules mentioned under Companies Act,2013.