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Nidhi Company

hanna thankam koshy (13 Points)

13 January 2021

How to add members in Nidhi Company ? What are the relevant provisions and procedure for this?

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3 Replies

CA. Sourav Sarkar (Chartered Accountant ) (24588 Points)
Replied 13 January 2021

Nidhi company shall have minimum 200 members
Share capital shall be 500000 rupees
Audit shall be carried out of Nidhi Companies
Nidhi company shall maintain ratio of Net owed Debt Funds at 1:20

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Kapadia Pravin (17264 Points)
Replied 14 January 2021

Procedure to add members under Nidhi Company

Choose and divide shares: ...

Attach the share certificate with FORM SH – 4: ...

Attach along with Membership Form: ...

Hand over the share certificate to him: ...

Pass board resolution for each entry: ...

Enter details in Share Transfer Register:

Krishna Chaudhary (Accountant) (4531 Points)
Replied 16 January 2021

Minimum of seven members is needed to start a Nidhi Company, out of which three members must be the Directors of the Company. Minimum paid-up equity share capital of Rs. 5 lakh is required to start a Nidhi Company. Not to issue preference shares and if it is issued the same to be redeemed as per the terms of the issue.