Minimum of seven members is required to start a Nidhi Company out of which three members must be the directors of the company.
Share capital & Owners’ funds:-
A minimum of 5 lakh rupees, is required as the equity share capital to start a Nidhi Company. Nidhi Company can’t issue preference shares.
Documents required for registration:-
1. Proof of registered place of business (Ownership documents/ Rent or lease agreement)
2. NOC (signed by owner/landlord)
3. Identity proofs
4. Address proof of members
5. Photos of members
6. Pan card copies of members
8. DIN of directors
Only one object will be mentioned in MoA of the company: Cultivating the habit of thrift and savings amongst its members, receiving deposit from and lending to, its members only, for their mutual benefits
Forms to be filed:-
1. INC 9 (to be filed by all the subscribers to the MOA
2. DIR 2 (to be filed by all the directors of the company, declaration as per rule 5 & 6 of Nidhi rules 2014-to be signed by all subscribers
Conditions to be fulfilled for getting ‘Nidhi’ status:-
1. Within one year of its registration
2. Nidhi Company should have minimum 200 members within one year from commencement
3. Also, the net owned funds should be 10 lakh rupees or more. Net owned funds = Equity share capital + free reserves (-) accumulated losses (-) intangible assets
4. Unencumbered term deposits must be 10% or higher of the outstanding deposits
5. The ratio of net owned funds to deposits shouldn’t be more than 1:20
If Nidhi Company satisfies all above conditions, it should file NDH-1 along with prescribed fees within 90 days from the end of the first financial year after incorporation. The form must be duly certified by practicing CA/ CS/ CWA.
Extension of another financial year can be availed upon submission of NDH-2 to the Regional Director within 30 days from the end of the first financial year.
If even after the second financial year, it doesn’t fulfill the requirements, it can’t accept deposits till it complies with the provisions, and also penalty will be imposed.1.