Legal & Compliance
APPLICABILITY:
The Central Government made 'Nidhi Rules, 2014' for the purpose of carrying out the objec ves of
'Nidhi' companies. These rules shall be applicable to-
Every company which had been declared as a Nidhi or Mutual Benefits under Sec on 620A(1)of
Companies Act, 1956;
E very company func oning on the lines of a Nidhi company or Mutual benefit society but has
either not applied for or has applied for and is awai ng no fica on to be a Nidhi or Mutual
Benefit Society under Sec on 620A(1)of Companies Act, 1956;
E very company incorporated as a Nidhi pursuant to the provisions of Sec on 406of the
Companies Act, 2013.
PRE-REGISTRATION REQUIREMENTS FOR REGISTERING A NIDHI COMPANY :
Minimum Three Directors:
Minimum three Directors are required to incorporate Nidhi Company. All this three director has to act
as members of the company.
Minimum Seven Members:
Nidhi Company can be started with seven members. Out of which 3 are also to be appointed as directors.
Minimum Capital Requirement:
Nidhi Company as Public Limited Company Should have Capital of Rs.5,00,000/- Like Public Limited
Company.
No Preference Shares shall be issued.
O bject of the Company
The objec ve of such a firm would be to imbibe in the members a habit of thri and saving and the
services would only be restricted to its members;.
The name of the company must have word as Nidhi Limited at the end.
PROCEDURE FOR INCORPORATION OF NIDHI COMPANY :
Get Digital Signature Cer ficate (DSC) of all seven members.
Get Director Iden fica on number (DIN) of three Directors by using DSC.
Suggest at least Six Company name. We will do search for name availability.
Apply to ROC for name approval with adding word Nidhi Limited.
Once name is approved by ROC File Incorpora on document with ROC like MOA AOA Consent of
Director, Affidavit and declara on from directors etc.
Once Incorpora on form is approved by ROC, ROC shall issue Cer ficate of Incorpora on with
PAN and TAN No.
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October 2017
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