In companies Act 2013, there are various types of restrictions applied on directors and shareholders to borrow or lend money to the companies. Therefore, the Ministry of Corporate affairs came with the solution which is known as Nidhi Company. It is one of the most popular form of giving money to its members and accept deposit from its members. This company doesn’t requires any type of certificate from the Reserve of India.
If you are thinking of incorporating Nidhi Company, first look the restrictions of it that are listed below.
Except if it has passeda unique goals in its general meetings and furthermore got the previous approval of the Regional Directors having jurisdiction over such Nidhi. Nidhi Company just works inside the state where its enlisted office is situated. However, people can buy another companyoutside the state and can their operations as well.
Minimum Members and Net Owned Fund Requirements of the Nidhi Company:
Rules Relating to the Directors:
Loans under Nidhi Company:
As per the law, Nidhi company can advance loan of 2 Lakh. In the event, if the amount of the deposit is than two Crore rupees. Further details are followed.
Nidhi Company is not dynamic and flexible than other companies. There are limitations on the working of this. Since, its deal in money related issues that is too without RBI approval, the restriction is bound to be there. Keeping in mind these restrictions before incorporating Nidhi Company. If you are looking for the Nidhi Company registration, feel free to contact us. Our team of professionals will help you regarding Nidhi Company registration and other related issues and give you one-step solution against them.
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