NIDHI COMPANY: Nidhi Company is governed by Section 406 of the Companies Act, 2013 and Company Nidhi Rules, 2014 which has formed with the objective of cultivating the habit of thrift and savings amongst its members. It is allowed to Nidhi companies to take deposit from its members and lend to its members only. Therefore, the funds contributed for a Nidhi company are solely from its members (shareholders) and used solely among the shareholders of the Nidhi Company.
PRE-REGISTRATION REQUIREMENTS FOR NIDHI COMPANY:
For Registration of Nidhi Company, Minimum 7 Members and Minimum 3 Directors are required. There is no Minimum Capital Requirement.
* Nidhi Companies are not allowed to issue Preference Shares.
POST-REGISTRATION REQUIREMENTS FOR NIDHI COMPANY
· Within 12 months of registration, Nidhi Companies are required to add minimum 200 Members.
A Nidhi company should add a minimum of two hundred members in order to compliance of law.. Further, it has to maintain this during the course of time. If the whole members falls less than 200 at anytime thenceforth, it will leave the company at default. However, if you are not able to reach the limit of 200 members, then you must apply for time within 30 days of closure of financial year in Form NDH-2 with Regional Director, Ministry of Corporate Affairs.
· Minimum Net Owned Fund (Paid Up Share Capital + Free Reserves) of 10 lakh or more.
· Unencumbered term deposits of not less than 10% of the outstanding deposits.
· A Nidhi Company shall not admit a body corporate, trust or minor as a member.
· Net owned funds to Deposits should be 1:20 i.e if you have net owned funds of 10 lakh, then your total deposit limit would be INR 2 Crore.
PROCESS OF REGISTRATION OF NIDHI COMPANY
1. Name Approval in ‘RUN’ facility
The Applicants are required to file name availability in ‘RUN’ facility of MCA portal. Every Company proposed to be incorporated as a “Nidhi” shall have the last words ‘Nidhi Limited’ at the end of its name.
There is no need of digital signature of applicant for name availability.
2. Obtaining Digital Signature Certificate (DSC)
The proposed Directors have to obtain Class 2 DSC.
3. File form SPICe32
After the name approval, File form SPICe 32 with following attachments for incorporation of Nidhi Company.
· Memorandum and Articles of Association
· PAN Card of subscribers
· Id Proof and Address Proof of First Directors
· Address Proof of Registered Office (Rent Agreement/Sale Deed)
· Latest Utility Bill of Registered Office (Electricity/Telephone/Gas)
· NOC of Owner of Registered Office
· Consent and Declaration from first Director in Form DIR-2
· Self Declaration from First Directors and Subscribers in Form INC-9
4. Approval and Certificate of incorporation
After, Form SPICe 32 has been filed, Registrar of Companies issue Certificate of Incorporation.
ANNUAL COMPLIANCE FOR NIDHI COMPANIES
a. NDH-1: Return of Statutory Compliances
Nidhi Companies are require to file a return of statutory compliances in Form NDH–1 within 90 days from the closure of the financial year with the Registrar duly certified by a CS in practice or a CA in practice or a Cost Accountant in practice.
b. NDH-2: Apply to the Regional Director for extension of time
If the company doesn’t comply with the minimum member criteria, it shall within 90 days from the close of the first financial year, apply to the Regional Director in Form NDH -2 for extension of time and the Regional Director may consider the application and pass orders within 30 days of the receipt of the application.
c. NDH-3: Half yearly return with the Registrar
Nidhi Companies are required to file Form NDH-3 within 30 days from the conclusion of each half year, duly certified by a CS in practice or a CA in practice or a Cost Accountant in practice.