NIDHI COMPANY RULES - ONICK EXPERTS

NIDHI COMPANY COMPLIANCES

A public company that has been incorporated as a Nidhi and has a share capital of Rs. 10 lakh must first apply to the Central Government to be recognized as a Nidhi by submitting Form NDH-4 with a minimum of 200 members and a NOF of Rs. 20 lakh within 120 days of its incorporation.
The company’s founders and directors must adhere to the rules’ requirements for being fit and proper people.
For prompt resolution, it is also stated in the modified rules that if the Central Government does not communicate a decision within 45 days of receiving applications submitted by enterprises on form NDH-4, approval would be assumed to have been given. This would apply to businesses that would be incorporated after the 2022 implementation of the Nidhi (Amendment) Rules.

It is necessary to meet the following criteria in order to establish a Nidhi company:

The name of the business must include “Nidhi Limited.”
The business must be publicly traded.
Nidhi does not accept minors, corporations, or trusts as members.
The paid-up share capital must be a minimum of Rs. 10 lakh.
Preference shares that have already been issued by the company before the Act’s start date must be redeemed. The corporation is not permitted to issue preference shares.
The company’s main goal must be to instill in its members a habit of conserving money.

As soon as a Nidhi company is incorporated, it must meet the following requirements:

200 members must be the bare minimum.
There must be Rs. 10 lakh in net-owned funds. (Net owned funds are paid-up capital plus free reserves added together, then the cumulative and intangible assets as shown on the most recent balance sheet are subtracted.)
The ratio of net owned funds to deposits must not be more than one to twenty, or 1:20 for net owned funds to deposits.
In accordance with Rule 14 of the 2014 Nidhi Rules, unencumbered term deposits must represent at least 10% of the total amount of outstanding deposits.