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NIDHI COMPANY

What is Nidhi Company Registration?


"Nidhi" is a Hindi word, which means finance or fund. Nidhi means a company which has been incorporated with the object of developing the habit of thrift and reserve funds amongst its members and also receiving deposits and lending to its members only for their mutual benefit.


Nidhi company registration requires minimum 3 members. All the Nidhi company’s incorporated shall have the last word as “Nidhi Limited” as part of its name. Nidhicompany is easy and economical to register. It might not issue preference share. If preference shares have already been issued by a Nidhi Company before initiation of this Act, such preference shares are to be redeemed in accordance with the terms of issue of such shares. All the Nidhi company’s incorporated shall have the last word as “Nidhi Limited” as part of its name.


Choose Nidhi Company because:

Low Rates of Interest


Secured Investments


Helpful for Lower and Middle Classes


No External Involvement in Management


Minimum Documentation and Formalities


Documents Required For Nidhi Company Registration


Copy of Director’s PAN Card


Passport size photograph of Directors


Copy of Rent agreement(If rented property)


Copy of Aadhaar Card/ Voter identity card of directors


Electricity/ Water bill (Business Place)


Copy of Property papers (If owned property)


Landlord NOC (Format will be provided)


Minimum Requirements for Incorporation


Before Incorporation


Minimum 7 shareholders


Minimum 3 Directors


Minimum Capital of Rs. 10 lacs


DIN for all directors


After Incorporation


Minimum number of 200 Shareholders


Net owned Fund shall not be less than Rs. 10 Lacs


Net owned funds to deposits ratio should be more than 1:20


Unencumbered deposits of not less than 10% of the outstanding deposits


Acceptance of Deposits under Nidhi Company


Acceptance of deposits is one of the major feature for Nidhi Company and hence, one must adhere to Nidhi rules so that Nidhi can run smoothly. Here are following important points:


Fixed deposits can be accepted for minimum 6 months and maximum 60 months.

Recurring deposits can be accepted for minimum 12 months and maximum 60 months.

The maximum balance on which interest is given under saving account cannot exceed 1,00,000/-

Further following point are also important for repayment of deposits:

a) No deposits shall be repaid within 3 months of deposits.

b) If deposits are repaid after three months, then he shall not be liable for interest upto 6 months.

c) If deposits are repaid before maturity, then interest provided shall be reduced by 2 percent.

Loans under Nidhi Company


Funds lending is another major feature for Nidhi Company and hence, one must adhere to Nidhi rules, 2014 so that Nidhi can run smoothly. Here are following important points:


The maximum loans to one person shall not exceed Rs.2,00,000/- if deposits is less than 2 crore.

Nidhi Company cannot give any unsecured loan or micro finance loans.

The maximum period of gold loan can be 1 year.

The repayment period for loan against property cannot exceed 7 years.

The maximum gold loan can be 80% of the value of the gold.

The maximum loan against property cannot exceed 50% of the value of the property.

Nidhicompany cannot provide vehicle loans etc.

Mandatory Compliances for Nidhi Company


There are many compliances which are to complied by the Nidhi Company, however the most important compliances are as follows:


NDH - 1


NDH - 1 is filed within 90 days from the date of closure of financial year


NDH - 3


NDH - 3 is filed half yearly, two times in a financial year on sept&march.


SHARES


Membership under Nidhi is dependent on distribution of shares.


Contact Us

  •  Divayan Bhawan 1st Floor , Kankarbagh Main Road Near Dena Bank , Opp Jalanshop, Kankarbagh Main Rd, Kankarbagh Colony More, Ghrounda, Patna, Bihar 800020.
  •  2nd Office:  WZ147, 3rd floor Mandiri wali gali, Shadipur, New Delhi-110008.
  •   8800170088, 9709480009
  •   csakassociates@gmail.com
         info@truebusinessminds.com