What Is Nidhi Company ? “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 funs amongst its members and also receiving deposits and lending to its members only for their mutual benefit. Incorporation Requirement 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 Unencumbered deposits of not less than 10% of the outstanding deposits Net owned funds to deposits ratio should be more than 1:20
Documents Required For Nidhi Company Registration ? Copy of Director’s PAN Card Passport size photograph of Directors Copy of Aadhaar Card/ Voter identity card of directors Copy of Rent agreement(If rented property) Electricity/ Water bill (Business Place) Copy of Property papers (If owned property) Landlord NOC (Format will be provided)
Advantages Of Nidhi Company ? No External Involvement in Management Helpful for Lower and Middle Classes Low Rates of Interest Secured Investments Minimum Documentation and Formalities
Some Questions : 1. I would like to start a Nidhi Company. How can I begin with and how long will it take to register? 2. My Nidhi Company is doing well. Can I expand its operations to other places? 3. My Nidhi Company has finished its one year tenure, but could not acquire the required number of members. Will I have to dissolve it? 4. Can any person other than the members deposit funds or transfer it to the general fund of the Nidhi Company? 5. Who can become a member of a Nidhi Company? 6. How much deposit can a Nidhi accept from its members/member?