Power to modify act in its application to Nidhis


“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.

For registering a company in Coimbatore click here

No Comments

Leave a Reply

company incorporation in coimbatore
Annual General Meeting
Various types of Companies You Can incorporation In coimbatore

The premier thing to manage while going into business is satisfying the legalities to guarantee the smooth running of your business substance. Company incorporation in Coimbatore is the initial phase in the process that awards you a legitimate approval to lead business. It includes maintaining a bunch of rules and …

registration in coimbatore
business registration entities
Types of limited company registration in coimbatore – documents requirements

Private limited company A Private Limited Company in Coimbatore is a type of company that has a minimum of two and a maximum of 200 members. As the name suggests, it cannot raise the funds from the public, which means the company cannot publicly issue the shares. There is no …

Company registration in Coimbatore and its importance:

Company registration in Coimbatore is the essential cycle by which entrepreneurs set up or consolidate their company. Since there are a few sorts of organizations in India, business visionaries need to guarantee they pick a business type that suits their tasks. In India, the Organizations Act, 2013 sets down rules …