The transactions of the company are regulated as per RBI guidelines.<\/p>\n\n\n\n
Features<\/strong><\/p>\n\n\n\n The only condition attached to Nidhi Company is a ceiling of interest rate payable to members on the deposits with them. The current rate of interest on the deposit is 2 percent.<\/p>\n\n\n\n One Person Company<\/strong><\/strong><\/p>\n\n\n\n SEC 2(62<\/strong>) OF COMPANIES ACT 2013 defines One Person Company<\/a><\/strong> as a Company in which there is only one person who is a member\/shareholder<\/a>\/director. This one person occupies all the positions.<\/p>\n\n\n\n Features<\/strong><\/p>\n\n\n\n The nominee appointed has to be a natural person. This natural person will be one who is a resident of India and has Indian citizenship. There has to be written consent of the nominee, and approval has to be given voluntarily.<\/p>\n\n\n\n In order to have a better understanding of the concept that which is a better option, the chart illustrates the differences between the two:<\/p>\n\n\n\n It can be concluded that after comparing the OPC and Nidhi Company, both are different types of companies under the Companies Act, 2013<\/strong>[1]<\/strong><\/a><\/sup>. The companies Act, 2013 defines Nidhi under 406 and OPC under section 2(62). The Nidhi Company in India<\/strong><\/a> is one particular public limited company that is governed under the supervision of RBI<\/strong> and as per the Companies Act, 2013. The companies Act, 2013 has clearly laid down that a One Person Company can never be converted into Section 8 and in the Nidhi Company. There is no similarity between these companies. The only similarity is that the provisions related to the Companies Act, 2013 would be applicable to both these companies.<\/p>\n\n\n\nRestrictions imposed on Nidhi Companies<\/h2>\n\n\n\n
![\"Restrictions](\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2020\/12\/image001-21.png\")
<\/figure>\n\n\n\n
<\/strong>The main feature of this form of company is only one director\/one shareholder. This director has complete control over the company. The maximum number of Directors which can be appointed is 15. This is possible only after making amendments to the memorandum.<\/li>
The minimum requirement is 1 Lakh.<\/li>
In the case of OPC, there is a mandatory requirement to appoint the Nominee Director to continue the functions of the company. His position starts after the death of the sole member who has the ultimate control\/ownership of the firm. The name of the nominee director must be mentioned in the Memorandum of Association.<\/li><\/ol>\n\n\n\n
There are not many legal formalities and compliance burden on the company. Like submission of regularly financial statements or annual returns. These formalities have to be carried out once a year.<\/li>
OPC offers the restriction on the transfer of shares.<\/li>
There is a complete prohibition on the invitation to the public for the subscription of shares<\/li>
In the name, it has to mention OPC in it.<\/li><\/ol>\n\n\n\nConclusion<\/h2>\n\n\n\n
Comparison between Nidhi Company and One Person Company<\/h2>\n\n\n\n
SL.N.<\/td> Particulars<\/td> Nidhi Company<\/td> One Person Company<\/td><\/tr> 1.<\/strong><\/td> Registered under<\/td> Companies Act<\/td> Companies Act<\/td><\/tr> 2.<\/strong><\/td> Minimum Share Capital required<\/td> Rs 5,00,000<\/td> Rs 1,00,000<\/td><\/tr> 3.<\/strong><\/td> Object clause<\/td> Only lending and borrowing of deposits between members<\/td> Object clause is the same as that of a public or private company<\/td><\/tr> 4.<\/strong><\/td> Membership<\/td> Must not have less than 200 members<\/td> Minimum members can 1and maximum 2.<\/td><\/tr> 5.<\/strong><\/td> Nominee member\/director<\/td> Not required<\/td> Must have nominee director, for the perpetual continuance of the firm that is n case of death or disease.<\/td><\/tr> 6.<\/strong><\/td> Net Owned Funds to deposits ratio<\/td> Required in the ratio of 1:20.<\/td> Not required<\/td><\/tr> 7.<\/strong><\/td> Private company<\/td> NBFC is a type of public limited company but cannot do any business other than of NBFC<\/td> It is a private company. But OPC cannot be a Nidhi Company.<\/td><\/tr> 8<\/strong>.<\/td> Name of the company<\/td> Must have prefixed Nidhi Company<\/td> Must have prefixed word OPC in its name.<\/td><\/tr> 9.<\/strong><\/td> Limited Liability<\/td> Yes<\/td> Yes<\/td><\/tr> 10.<\/strong><\/td> Conversion<\/td> No<\/td> Can never be converted into section 8 and NBFC<\/td><\/tr> 11.<\/strong><\/td> Application of rules<\/td> Nidhi company rules 2014 and companies Act 2013<\/td> Companies Act 2013<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n