Direct Tax Services
Select Your Location
Nidhi company is the most popular structure to start finance business for the community and by the community. In this article, We will discuss the checklist for the Incorporation of Nidhi company.
Table of Contents
Pursuant to the provisions of Section 406 of the Companies Act, 2013 every Incorporation of Nidhi Company.
There are the following requirements for Nidhi Company Registration:-
Within a period of 1 year from the commencement of these rules, every Nidhi company shall ensure that it has
Rule 6 provides general restrictions. According to this Rule, no Nidhi shall-
Share capital and allotment
Rule 7 provides that every Nidhi shall issue equity shares of the nominal value of not less than ₹ 10/- each. This requirement shall not apply to a company which has been declared as a Nidhi company. Provided that this requirement shall not apply to a company referred below:
Every Nidhi shall invest and continue to keep investing, in unencumbered term deposits with a scheduled commercial bank or post office deposits in its own name an amount which shall not be less than 10% of the deposits outstanding at the close of the business on the last working day of the second preceding month.
In case of unforeseen commitments, temporary withdrawal may be permitted with the prior approval of the Regional Director for the purpose of repayment to depositors, subject to such conditions and time limit which may be specified by the Regional Director to ensure restoration of the prescribed limit of 10%.
A Nidhi shall provide loans only to its members. The loans given to a member shall be subject to the following limits:
A Nidhi shall not close any branch unless
Annual returns required to fill by Nidhi Company
Companies Covered under Rule -2 are the following:
Power to enforce compliance with Nidhi company
The penalty for non-compliance of law by Nidhi company
Further, in accordance with Rule 9, every Nidhi shall maintain Net Owned Funds (excluding the proceeds of any preference share capital) of not less than 10 lakh rupees or such higher amount as the Central Government may specify from time to time.
Read our article:Rules Regarding Nidhi Company Setup in India
Experienced Finance and Legal Professional with 12+ Years of Experience in Legal, Finance, Fintech, Blockchain, and Revenue Management.
Many investors use fixed deposits as their primary investment vehicle. Investors with a high-ri...
The main idea of CDS, which was initially to give banks a way to transfer credit exposure, has...
Black money has been the subject of heated political debate in India for a long time. Successiv...
The Apex Court pronounced a judgement in the case titled Tata Motors Vs The Brihan Mumbai Elect...
Since economies are moving towards digitalisation and making it feasible to conduct transaction...
The Alternative Investment Funds (AIFs) Pro-rata and Pari-Passu Rights Proposal Consultation Pa...
The Financial Action Task Force, i.e. FATF (the Force), is the global money laundering and terr...
Advance tax refers to the payment of the tax liability before the end of the relevant financia...
On 11.12.15, the Hon’ble Delhi High Court (HC) pronounced a landmark judgement in the case ti...
Money laundering can be defined as the process of illegal concealment of the origin of money ob...
Are you human?: 3 + 4 =
Easy Payment Options Available No Spam. No Sharing. 100% Confidentiality
Nidhi Company is a type of company which accepts deposits and lend money to its members only. Under this, profit ea...
30 Nov, 2017
As per Companies Act, 2013 interest on a loan made by Nidhi company has been well regulated by MCA and Nidhi compan...
15 Nov, 2017
Red Herring Top 100 Asia enlists outstanding entrepreneurs and promising companies. It selects the award winners from approximately 2000 privately financed companies each year in the Asia. Since 1996, Red Herring has kept tabs on these up-and-comers. Red Herring editors were among the first to recognize that companies such as Google, Facebook, Kakao, Alibaba, Twitter, Rakuten, Salesforce.com, Xiaomi and YouTube would change the way we live and work.
Researchers have found out that organization using new technologies in their accounting and tax have better productivity as compared to those using the traditional methods. Complying with the recent technological trends in the accounting industry, Enterslice was formed to focus on the emerging start up companies and bring innovation in their traditional Chartered Accountants & Legal profession services, disrupt traditional Chartered Accountants practice mechanism & Lawyers.
Stay updated with all the latest legal updates. Just enter your email address and subscribe for free!
Chat on Whatsapp
Hey I'm Suman. Let's Talk!