Most frequent questions and answers
No, Nidhi Companies are not chit fund companies, Nidhi companies is the type of Non-Banking Financial Company which can accept deposit and provide loan to its member only. Chit fund companies are governed by chit fund act and rules, it is a type of a saving scheme in India where fixed instalment is paid by the members over a definite
period of time.
Any Persondesirous of becoming a member and who is above 18 years of agecan become a member of the Nidhi Company.
Yes, Deposits with Nidhi are safe and secured because Government of India and Reserve Bank of India has framed the various Laws, Rules, Regulations and Nidhi companies are required to strictly comply with all compliance to ensure the security and safety of deposits of members.
No, only members of a Nidhi company are eligible to obtained loan and deposited Money in Nidhi companies.
No, Nidhi companies would not open any branches or offices Outside the State where its registered office is situated, Nidhi may open only 3 branches within its district, Open branches outside the district prior approval of Regional Director is required.
No, Minimum seven members is required to form a Nidhi Company, after incorporation within a one-year Nidhi company must have at least 200 members. For formation of company doesn’t required 200 members.
Nidhi company not allowed to do business of Chit fund, Leasing Finance and acquisition of shares issued by companies, Insurance, Hire Purchase Finance.
After Nidhi Company Incorporation within a one-year Nidhi company must maintain a net owned fund of not less than Rs. 10Lacs at all times.
Nidhi companies are required to do following ROC filing compliances mandatorily:
- Form NDH-1-within 90 from the close of financial year
- Form NDH-3-within 30 days from the conclusion of each half year; 30 October/ 30April
- Form AOC-4 within 30 days of the annual general meeting;
- Form MGT-7 within 60 days of the annual general meeting.
Nidhi Company shall be given loan only against the followings:
- Fixed/Immovable Property
- Gold, Silver and Jewellery
- Fixed Deposit and Other Cash Deposit
Government Bonds or National savings Certificates.