- At least 200 of the shareholders.
- The net owned funds by the Nidhi Company must be at least 10 lakhs or more.
- The net owned fund ratio of deposits must be 1:20.
- There are institute offices that are single and have no outside interference.
- There must be mutually beneficial societies building a habit of saving between their involved members and work for the benefit of their depositing and borrowing members.
- Deposits are usually much lesser than handled by the other institutions in financial sectors.
- The term deposit is accepted by the members of only for a period of safe returns. It wouldn’t require any RBI license.
- This should provide easy loans to the involved members. The repayment is limited to just one year and 7 years, against the immovable property or the jewellery as their security. The less rate of interest is charged as compared to the bank loans.
- Nidhi Company has to be incorporated as a public limited company with minimum of 3 directors and 7 shareholders and a sum of 10 lakh rupees as capital.
- Nidhi company registration is done as a public company registration, and the process is same as a public company except for few additional steps.
- The net owned funds must be 10lakhs or more than that.
- The company must have no burden or impediment deposits not less than 10% of the outstanding deposits.
- A Nidhi company registration in India should have registered as nidhi limited being part of its name.
- A Nidhi company must not issue preference shares.
- The ratio is 1:20 and not exceeding net owned funds.
Original Source:- https://swaritadvisorsindia.wordpress.com/2018/06/01/essential-highlights-on-nidhi-company-registration/