Nidhi Company Compliance - Overview
Nidhi Company also consists of few annual compliance failing to do so company will face penalties. The statutory compliances are disclosed in Nidhi Rules 2014 and the Companies Act 2013 and it has to be done once after the Nidhi Company Registration
The legal compliances associated with Nidhi Company are prescribed in Nidhi Rules 2014 and the Companies Act 2013. Nidhi Company is the perfect type of company for those who want to start a business with minimum capital investment. As per the provisions of the Section 406(1) of the Companies Act, 2013, the Nidhi Company as 'A company which has been incorporated as a Nidhi with the object of cultivating the habit of thrift and savings amongst its members, receiving deposits from, and lending to, its members only for their mutual benefit.
Benefits of Nidhi Company Registration
Easy to Form the Company
Cost Efficient Registration
High level of certainty in Nidhi Company
Less level of Risk
No RBI Regulations
Documents Required For Registration
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Pre-Incorporation Compliances of Nidhi Company
- Minimum of 7 members c an start a Nidhi Company in which three of them are appointed as Directors of the nidhi company
- Nidhi Company can come into existence with a minimum share capital of Rs 5, 00,000.
- The rate of interest on the credit will not surpass 7.5% over the most noteworthy pace of intrigue offered on deposits.
- A trust or a corporate body cannot be the member of Nidhi Company
- In case preference shares are issued they are to be redeemed as per the same terms of the issue.
- Can't acknowledge the store of over 20% of Net Owned Funds
- Company must have “Nidhi Limited” in its name
- Nidhi Company can't open branches in case it fails to earn any profit after assessment for sequential three money related years
Process To Register
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Post-Incorporation Compliances of Nidhi Company
- The number of members should not be less than 200 within one year of its incorporation
- As per the Rule 14 of the Nidhi Rules, 2014, the stores should not be below 10% of the outstanding deposits.
- The Net possessed Fund ought to be Rs. 10 lakh or more.
- Support of Books of Accounts
- Maintain the legal Registers.
- Collect Statutory Meetings
- The proportion of Net-possessed Funds to the stores must not surpass 1:20
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