Nidhi Company Registration

Minimum 7 people (natural) can register a Nidhi company.

For natural persons following documents are required:

• PAN
• AADHAR
• EMAIL ID
• MOBILE NUMBER
• ANY ONE OF ELECTRICITY BILL / MOBILE BILL / TELEPHONE BILL / BANK STATEMENT MUST NOT BE OLDER THAN 2 MONTHS*
• PASSPORT SIZE PHOTOGRAPH

For address proof of company:

If owned premise: ANY ONE OF ELECTRICITY BILL / MOBILE BILL / TELEPHONE BILL MUST NOT BE OLDER THAN 2 MONTHS* ALONG WITH NOC

If rented premise: ANY ONE OF ELECTRICITY BILL / MOBILE BILL / TELEPHONE BILL MUST NOT BE OLDER THAN 2 MONTHS* ALONG WITH NOC & RENT AGREEMENT

Minimum 3 directors are required to register a Nidhi company. At any time, if minimum number of directors falls below 2, there comes a statuary default.

As per Section 165(1) of the Act states that an individual can hold the office of director simultaneously in 20 companies. The number of 20 companies includes the office of alternate directorship. an individual can't be a director in more than 20 companies at a given time. However, the utmost number of public companies during which an individual are often a director simultaneously is 10

It can do lot of business activities, some of main business activities are as under: Saving Account

• Fixed Deposit Account
• Recurring Deposit Account
• Secured Loans
• Locker Facility etc.

No Nidhi Company shall –

Carry on the business of chit fund, hire purchase finance, leasing finance, insurance or acquisition of securities issued by any body corporate;
• Issue preference shares, debentures or any other debt instrument by any name or in any form whatsoever;
• Open any current account with its members;
• Acquire another company by purchase of securities or control the composition of the Board of Directors of any other company in any manner whatsoever or enter into any arrangement for the change of its management, unless it has passed a special resolution in its general meeting and also obtained the previous approval of the Regional Director having jurisdiction over such Nidhi (“control” shall have the same meaning assigned to it in clause (27) of section 2 of the Act)
• carry on any business other than the business of borrowing or lending in its own name: Provided that Nidhis which have adhered to all the provisions of these rules may provide locker facilities on rent to its members subject to the rental income from such facilities not exceeding twenty per cent of the gross income of the Nidhi at any point of time during a financial year.
• • Accept deposits from or lend to any person, other than its members
  • Pledge any of the assets lodged by its members as security
  • Take deposits from or lend money to anybody corporate
  • Enter into any partnership arrangement in its borrowing or lending activities
  • Issue or cause to be issued any advertisement in any form for soliciting deposit
  Provided that private circulation of the details of fixed deposit Schemes among the members of the Nidhi carrying the words “for private circulation to members only” shall not be considered to be an advertisement for soliciting deposits.
• Pay any brokerage or incentive for mobilising deposits from members or for deployment of funds or for granting loans.

Yes! A natural person can be a director, a member and member & director both.

NIDHI COMPANY

Nidhi company can accept deposits and give loan to its shareholders/members only.

CREDIT CO OPERATIVE SOCITIES

Formation of cooperatives mainly for suporting farmers by extendIng subsidised credits and protect them from exploitation of money lenders.

Like at time of registration of property, We pay the stamp duty; in the same way, at time of registration of a company we have inform the capital (funds) that we may infuse for operations now or in future, accordingly decide a upper limit of investment in terms of capital. This amount of capital is called Authorized Capital & we pay stamp duty on it. It is amendable. When we increase we pay additional stamp duty. The part of Authorized capital that has been actually invested in the company is called paid-up capital.

Limited liability means suppose a member subscribed capital of Rs. 100,000/- but paid Rs. 60,000 to the company. The company meets losses & become insolvent / bankrupt. The liability of that member shall be limited to Rs. 40,000/- only be the losses of 4 crores or more or that person may have capability to fulfill the losses from his personal property.

• Nidhi shall not accept deposits exceeding 20 times of its Net Owned Assets as per last audited financial statements
• Fixed deposits ‐ minimum period of 6 months & maximum period of 60 months AND Recurring deposits – minimum period of 12 months & maximum period of 60 months.
• 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%.
• Recurring deposits relating to mortgage loans ‐ maximum period of recurring deposits shall correspond to the repayment period of such loans granted by Nidhi.
• Invest and maintain ‐ unencumbered term deposits ‐ scheduled commercial bank or post office deposits in its own name ‐ 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.
• Maximum balance in savings deposit account ‐ shall not exceed Rs.1,00,000/‐ and interest shall not exceed 2% above the rate of interest payable to savings bank account by nationalized banks.

The Nidhi can give loans only to its members. The loan to be given shall be subject to the following limits:

The rate of interest to be charged on any loan given by a Nidhi shall not exceed 7.5% above the highest rate of interest offered on deposits by Nidhi.

Nidhi shall charge the same rate of interest on the borrowers in respect of the same class of loans. Rates of interest of all classes of loans shall be prominently displayed on the notice board at the registered office and each branch office of Nidhi.