A type of Indian non-banking finance company known as a Nidhi company lends and borrows money from its members.
It was established to lend and borrow money from its members. It operates on the basis of mutual benefit and instills the habit of saving in its members.
What are the Loans and Requirements of Nidhi Company?
Nidhi Company’s requirements include being a publicly traded company. Requires at least Rs minimum of five lakhs as paid-up capital and must include “Nidhi Limited” after its name.
The minimum net-owned fund should be Rs. 200, and there must be at least 200 shareholders.10 lakhs.
Required Documents for the Company’s Incorporation Pan Copy of Director and Shareholder ID Proof Copy of Director and Shareholder Address Proof (Bank Statement, Electricity Bill, or Mobile Bill) Passport-Size Photograph Property Owner Document of Registered Office Premises NOC of the Same
Nidhi Company registration requires a minimum of seven members.
Three minimum directors
Prepare the necessary documents following name approval using the Make DSC Make RUN Services.
Use the SPICE+ incorporation form.
Compliance With the 2014 Nidhi Rules:
Type NDH-3:Half-Yearly Returns must be filed with the ROC on Form NDH-3 within 30 days of the end of each half year. for example, on May 30 and October 30. Structure NDH-1:Nidhi Company must submit its Yearly Return on Form NDH-1 by May 29 of each year. All of the information about members, loans, deposits, reserves, and other things can be found on this form for the entire fiscal year. You Can get the Top Services for Nidhi Company in India Online.
Things Nidhi Company Never Allows:-
- It cannot purchase corporate-issued securities, use financial leasing protection, or bear chit funds.
No preference shares or debt instruments of any kind can be issued under any name by Nidhi Company.
- There will be no current accounts opened by the company for any of its members.
- It cannot enter into any agreements, concessions, or acquisitions until a Special Resolution has been approved by the General Meeting and the regional director in charge of that Company has given their prior approval.
- Perform some action on its behalf that is not related to the borrowing or lending industry The company Nidhi is not allowed to take deposits or lend money to anyone other than its members.
Provide Security for any assets deposited by its members. It is against the law for Nidhi to make loans or take deposits from any business.
When it comes to their borrowing or lending operations, these businesses are not permitted to enter into any relationship arrangements.
The Nidhi Company also prohibited publicizing any form of deposit-seeking activity.
Nidhi Company’s Minimum Membership Requirements:-
Within one year of its incorporation and at any time thereafter, every Nidhi company should have at least 200 members. In 1 year from the date of consolidation, each organization will have net-claimed Rs. Ten thousand dollars in cash.
Amount of Money a Nidhi Organization Can Loan to Members:
- Rs.2 Lakh in cases where the sum of all deposits is less than Rs.$2 million.
- Rs.7.50 Lakh in the event that its members deposit more than Rs.2 lakh, but more than 20 billion rupees.
- Rs.12 Lakh, where the members’ deposits total more than Rs.20 lakh rupees, but not more than 50 lakh rupees.
- Rs.15 Lakh in cases where the sum of all deposits is greater than Rs.50 crore. If Nidhi hasn’t been profitable for the past three fiscal years, no new loans over 15% can be obtained.
Members who have taken out a loan from Nidhi and defaulted on it cannot accept additional credits from Nidhi. Borrowing money from the Nidhi Company is restricted to its representatives only.