To establish a Nidhi Company, the following criteria must be met:
The company must have the suffix “Nidhi Limited” in its name The company must be a Public Company. Minor, Body Corporate and a Trust cannot be admitted as members to Nidhi. The minimum paid-up share capital must be Rs. 5 lakh. The company cannot issue preference shares, in the case where such shares have been issued by the company prior to the commencement of the Act, the same shall be redeemed. The primary objective of the company must be to inculcate the habit of savings in its members. Post Incorporation Requirements of a Nidhi Company Within one year of incorporation, a Nidhi company must satisfy the following conditions:
The minimum number of members must be 200. The Net owned funds must be Rs. 10 lakhs. (Net owned funds is the aggregate of paid-up capital and free reserves reduced by the accumulated and intangible assets as appearing in the last balance sheet.) The net owned funds and the deposits shall be in a ratio not exceeding 1: 20 that is Net Owned Funds: Deposits = 1:20. Unencumbered term deposits should be not less than 10 % of the outstanding deposits as specified in Rule 14 of Nidhi Rules 2014.
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