NIDHI COMPANY FAQ
What is Nidhi Company? • A Nidhi Company or Mutual profit Society/Fund or the other name by that you'll comprehend it, is a company created for the mutual advantage of its members. • This mutual profit comes from cluster loaning and borrowing.
Why Nidhi Company should be registered? • The members have limited liability which is extended up to the amount they have contributed or invested in the company. • They are liable only for their share in the company. Personal Assets are beyond the reach of liability.
Why Nidhi Company should be registered? • They cannot be utilized for meeting the liability of the company. • Funds contributed by members is available for the members themselves at lower interest rates.
Why Nidhi Company should be registered? • A registered Mutual Benefit Society enjoys separate legal existence. • The members and the company are different.
Why Nidhi Company should be registered? • The company can buy, sale, or acquire assets in its own name, it can also incur debt in its own name, also it can sue or be sued in its own name.
How to register Nidhi Company? • Incorporate a Public Ltd. Company with minimum paid up equity share capital of Rs. 5,00,000 with the sole object of lending and borrowing within the members.
How to register Nidhi Company? • Company must be incorporated with ‘Nidhi Ltd.’ as last words in their name.
How to register Nidhi Company? • Company should ensure that it has minimum 200 members, Rs. 10,00,000 or more of Net Owned Funds, maximum ratio of N.O.F to Deposit 1:20,debt free term deposits of not less than 10% of the outstanding deposits, etc.
How to register Nidhi Company? • Company is then required to file after the close of the first financial year NDH-1 or NDH-2 within 90 days or 30 days with ROC or RD respectively.
Documents Required • Pan Card • ID Proof 1. Electricity Bill 2.Telephone Bill 3.Mobile Bill 4.Bank Statement
Documents Required 1. Voter ID 2. Aadhaar Card 3. Passport 4. Driving License