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Nidhi Company Registration Requirements - India

by Shanker Rungta at the confluence of trademark and patent marketin

Formation of a Nidhi Company is very different from registering a Private Limited Company, LLP or any other form of Company. It needs to be ensured that each Nidhi Company should fulfil the below-written requirements;

  • A Nidhi Company needs the involvement of not less than two hundred members;
  • The total fund or amount of capital need for a Nidhi Company should be a minimum of five lakh rupees or more;
  • Independent term deposits of a minimum of ten per cent of the noted deposits as defined in rule 14;
  • As per Rule 5(1), the ratio of Net Owned Funds to deposits should not be more than 1:20.

Once a Nidhi is formed, 90 days after the first financial year a Nidhi Company is required to file a return of Statutory Compliances, which is filing Form NDH-1 and the prescribed fee is to be given along with it. This is to be done with the Registrar rightfully certified by a Company Secretary(CS) or a Chartered Accountant(CA) or a professional Cost Accountant in practice.

If a Nidhi doesn't have minimum of two hundred members and the expected net ratio of Net Owned Funds to deposits is not met then, within 30 days from the closing of the first financial year a Nidhi Company needs to apply to a Regional Director in Form NDH-2. The prescribed fee is required to be submitted along with the form which would state a plea for extension of time. The Regional Director if convinced will pass on the application within thirty days after receiving the application. In case a Nidhi Company is unable to meet the eligibility as mentioned above after the first financial year, then the Nidhi Company shouldn't accept any further deposits from the commencement of the second financial year. The company can also be liable to a certain penalty as mentioned in the Act. It can only be possible if a Nidhi Company fulfils the conditions to contain the provisions and rights of the same.


About Shanker Rungta Junior   at the confluence of trademark and patent marketin

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Joined APSense since, August 20th, 2018, From New Delhi, India.

Created on Apr 25th 2019 03:21. Viewed 180 times.

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