“Nidhi” means a company which has been registered as a Nidhi of improving the way of economy and savings to its members, the mutual benefit is for getting deposits from who contribute to its members and which follows with such rules are authorized by the central government for procedure of such class of companies. The company registration and their activities are specified in their registrar of office.
The announcement of all copies suggested to be provided under sub-section (2), it shall be set in draft before each house of parliament, while it is in conclave, for a total period of 30 days which may be contained in one meeting or in two or more discussions, before the expiry of the meeting immediately following the meeting or the same successive meetings, both houses agree in disapproving the issue of the news or both houses agree in forming any changes in the notification.
The Nidhi rules are proceed on 1st day of April 2014. Under sub-section(1) of section 620A of the companies act 1956 which specifies all company as an Nidhi or Mutual Benefit Society.
All the companies are registered as a Nidhi consistent under the section 406 of the act.
Registration and incidental matters
A nidhi to be registered under the act shall be a public limited company. The amount of Rs.5 lakh is for their share capital. After starting the company, Nidhi shall provide preference shares. The company is registered as a “Nidhi” include the name as “Nidhi Limited” in the last name.
Needs for minimum number of members :
All of the Nidhi company shall have with in a term of 1 year from beginning of these rules has :
- The total funds of rupees 10 lakh
- Ratio of Net owned funds to deposits of not more than 1:20
- Not less than 200 rupees
Within 90 days from the close of first financial year after its registration and it is useful for second financial year, Nidhi shall register a return of statutory agreements in Form NDH-1 with a fee. It is mentioned in companies (registration offices and fees) rules, 2014.
If Nidhi is not following with clause (a) or (d) of sub-rule(1) above. The first financial year is close from with in 30 days.
General regulations or prohibitions
- Manage chit fund business, hire purchase finance, acquisition or insurance of securities provided by any body corporate, leasing finance.
- Open any current account.
- Obtain deposits from or contribute to any person other than its members
- Register into any partnership agreement in its lending or borrowing proceedings.
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