Nidhi company registration in Jharkhand
“Nidhi” is a Hindi word, which means finance or fund. Nidhi Company requires minimum 3 members. It might not issue preference share. If preference shares have already been issued by a Nidhi Company before initiation of this Act, such preference shares are to be redeemed in accordance with the terms of issue of such shares.
Nidhi Company is a company registered under the Companies Act, 2013, which has a sole objective of cultivating the habit of thrift and savings amongst its members. Nidhi companies are allowed to take deposit from its members and lend to its members only. Therefore, the funds contributed for a Nidhi company are only from its members (shareholders) and used only by the shareholders of the Nidhi Company.
Applicability of Nidhi Registration
The Centre made ‘Nidhi Rules, 2014’ for the purpose of carrying out the objectives of ‘Nidhi’ companies. These rules shall be applicable to:
1. A Nidhi or Mutual Benefits registered under Section 620A (1) of Companies Act
2. Every company functioning on the lines of a Nidhi company or mutual benefit society but has either not applied for or has applied for and is awaiting notification to be a Nidhi or Mutual Benefit Society under Section 620A (1)of Companies Act
3. Every company incorporated as a Nidhi with respect to the provisions of Section 406 of the Companies Act, 2013.
∙ Copy of PAN of Directors and Shareholders.
∙ Copy of ID Proof of Directors and Shareholders. (Voter ID, AADHAR, Driving License, Passport)
∙ Copy of Address Proof of Directors and Shareholders (Bank Statement/ Electricity bill/ Mobile bill/ Telephone Bill)
∙ Passport size Photographs.
∙ Property Ownership Documents of Registered office premises:
∙ If property is owned: Electricity bill + Ownership Documents + NOC (if required)
∙ If property is rented: Electricity bill + Rent Agreement + NOC
∙ Apart from all these documents, Some other required documents will be prepared by your Corporate Professional i.e. CA/CS for submission to ROC.
Reasons to Register a Nidhi Company Registration
∙ Very Easy formation
∙ Cost efficient registration
∙ No RBI Regulations – less compliance.
∙ More Certainty in Nidhi Company
∙ Less level of Risk – non- payment loans
∙ Net owned fund- Invest one get twenty
∙ Separate Legal Entity
∙ Easy Management
∙ Uninterrupted Existence
Q. How many directors are required in a Nidhi Company?
A minimum of three directors are needed to establish a Nidhi Company and the maximum number cannot exceed fifteen.
Q. How much money is required to start a Nidhi Company?
The minimum approved capital to start a Nidhi company is Rs. 500000 and this can be increased to any amount (no upper limit).
Q. When does one get the status “Nidhi” approved?
After a company is incorporated, within a period of one year from the commencement, the Nidhi Company must meet the following criteria:
1. It must not have less than two hundred members (Shareholders)
2. Must have Net Owned Funds (NOF) of ten lakh rupees or more
3. Must have unencumbered term deposits of not less than ten per cent of the outstanding deposits
4. Must have a ratio of Net Owned Funds to deposits of not more than 1:20