Articles
Nidhi Company Registration Requirements - India
by Shanker Rungta at the confluence of trademark and patent marketinFormation 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.
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About Shanker Rungta 
at the confluence of trademark and patent marketin
0 connections, 0 recommendations, 5 honor points.Joined APSense since, August 20th, 2018, From New Delhi, India.
Created on Apr 25th 2019 02:21. Viewed 473 times.
