{"id":16686,"date":"2021-09-24T23:17:44","date_gmt":"2021-09-24T17:47:44","guid":{"rendered":"https:\/\/carajput.com\/blog\/?p=16686"},"modified":"2021-10-06T17:33:21","modified_gmt":"2021-10-06T12:03:21","slug":"nidhi-company-related-frequently-asked-questions","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/nidhi-company-related-frequently-asked-questions\/","title":{"rendered":"Nidhi Company Related Frequently Asked Questions"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69d7204048d2e\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d7204048d2e\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/nidhi-company-related-frequently-asked-questions\/#Nidhi_Company_Frequently_Asked_Questions\" title=\"Nidhi Company Frequently Asked Questions\">Nidhi Company Frequently Asked Questions<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/nidhi-company-related-frequently-asked-questions\/#Q_How_does_the_Nidhi_Company_use_the_funds_it_receives\" title=\"Q.: How does the Nidhi Company use the funds it receives?\">Q.: How does the Nidhi Company use the funds it receives?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/nidhi-company-related-frequently-asked-questions\/#Q_Are_Nidhi_Company_deposits_safe_and_secure\" title=\"Q.: Are Nidhi Company deposits safe and secure?\">Q.: Are Nidhi Company deposits safe and secure?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/nidhi-company-related-frequently-asked-questions\/#Q_Who_is_eligible_to_become_a_shareholdermember_of_Nidhi_Company\" title=\"Q.: Who is eligible to become a shareholder\/member of Nidhi Company?\">Q.: Who is eligible to become a shareholder\/member of Nidhi Company?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/nidhi-company-related-frequently-asked-questions\/#Q_Can_a_minor_be_a_member_of_a_Nidhi_Company\" title=\"Q.: Can a minor be a member of a Nidhi Company? \">Q.: Can a minor be a member of a Nidhi Company? <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/nidhi-company-related-frequently-asked-questions\/#Q_Is_it_possible_to_provide_loans_to_non-members\" title=\"Q.: Is it possible to provide loans to non-members? \">Q.: Is it possible to provide loans to non-members? <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/nidhi-company-related-frequently-asked-questions\/#Q_What_are_the_Nidhi_Companys_Restrictions\" title=\"Q.: What are the Nidhi Company&#8217;s Restrictions?\">Q.: What are the Nidhi Company&#8217;s Restrictions?<\/a><ul class='ez-toc-list-level-4'><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/carajput.com\/blog\/nidhi-company-related-frequently-asked-questions\/#Nidhi_Companies_are_not_permitted_to_engage_in_the_following_activities\" title=\"Nidhi Companies are not permitted to engage in the following activities:\">Nidhi Companies are not permitted to engage in the following activities:<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/carajput.com\/blog\/nidhi-company-related-frequently-asked-questions\/#Q_Can_Nidhi_operate_in_business_other_than_those_listed_above_such_as_Chit_Fund_Hire_Purchase_Insurance_Investing_and_so_on\" title=\"Q.: Can Nidhi operate in business other than those listed above, such as (Chit Fund, Hire Purchase, Insurance, Investing, and so on)?\">Q.: Can Nidhi operate in business other than those listed above, such as (Chit Fund, Hire Purchase, Insurance, Investing, and so on)?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/carajput.com\/blog\/nidhi-company-related-frequently-asked-questions\/#Q_What_is_the_minimum_number_of_members_required_in_Nidhi_Company\" title=\"Q.: What is the minimum number of members required in Nidhi Company?\">Q.: What is the minimum number of members required in Nidhi Company?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/carajput.com\/blog\/nidhi-company-related-frequently-asked-questions\/#Q_Can_Nidhi_Company_issue_Preference_Shares\" title=\"Q.: Can Nidhi Company issue Preference Shares?\">Q.: Can Nidhi Company issue Preference Shares?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/carajput.com\/blog\/nidhi-company-related-frequently-asked-questions\/#Q_Can_a_person_serve_as_a_director_of_the_NIDHI_Company_without_owning_any_stock\" title=\"Q.: Can a person serve as a director of the NIDHI Company without owning any stock?\">Q.: Can a person serve as a director of the NIDHI Company without owning any stock?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/carajput.com\/blog\/nidhi-company-related-frequently-asked-questions\/#Q_What_is_the_maximum_term_for_a_director_in_Nidhi_Company\" title=\"Q.: What is the maximum term for a director in Nidhi Company?\">Q.: What is the maximum term for a director in Nidhi Company?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/carajput.com\/blog\/nidhi-company-related-frequently-asked-questions\/#Q_What_is_the_minimum_nominal_value_of_Nidhi_Companys_shares\" title=\"Q.: What is the minimum nominal value of Nidhi Company&#8217;s shares?\">Q.: What is the minimum nominal value of Nidhi Company&#8217;s shares?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/carajput.com\/blog\/nidhi-company-related-frequently-asked-questions\/#Q_What_is_the_minimum_ownership_requirement_for_deposit_holders\" title=\"Q.: What is the minimum ownership requirement for deposit holders?\">Q.: What is the minimum ownership requirement for deposit holders?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/carajput.com\/blog\/nidhi-company-related-frequently-asked-questions\/#Q_What_is_the_highest_amount_that_Nidhi_may_accept_as_a_deposit\" title=\"Q.: What is the highest amount that Nidhi may accept as a deposit?\">Q.: What is the highest amount that Nidhi may accept as a deposit?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/carajput.com\/blog\/nidhi-company-related-frequently-asked-questions\/#Q_What_is_the_maximum_amount_that_a_Nidhi_can_declare_as_a_dividend\" title=\"Q.: What is the maximum amount that a Nidhi can declare as a dividend?\">Q.: What is the maximum amount that a Nidhi can declare as a dividend?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/carajput.com\/blog\/nidhi-company-related-frequently-asked-questions\/#Q_Is_it_legal_for_Nidhi_Company_to_take_over_another_company\" title=\"Q.: Is it legal for Nidhi Company to take over another company?\">Q.: Is it legal for Nidhi Company to take over another company?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-16687\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/09\/Nidhi-Company-Frequently-Asked-Questions-300x169.jpg\" alt=\"Nidhi Company Frequently Asked Questions\" width=\"573\" height=\"323\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/09\/Nidhi-Company-Frequently-Asked-Questions-300x169.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/09\/Nidhi-Company-Frequently-Asked-Questions-1024x576.jpg 1024w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/09\/Nidhi-Company-Frequently-Asked-Questions-768x432.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/09\/Nidhi-Company-Frequently-Asked-Questions-800x450.jpg 800w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/09\/Nidhi-Company-Frequently-Asked-Questions.jpg 1280w\" sizes=\"(max-width: 573px) 100vw, 573px\" \/><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Nidhi_Company_Frequently_Asked_Questions\"><\/span><a href=\"https:\/\/www.caindelhiindia.com\/blog\/all-about-on-nidhi-company\/\"><span style=\"color: #ff0000;\"><strong><em>Nidhi Company Frequently Asked Questions<\/em><\/strong><\/span><\/a><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Q_How_does_the_Nidhi_Company_use_the_funds_it_receives\"><\/span><span style=\"color: #000080;\"><strong>Q.: How does the <a href=\"https:\/\/www.caindelhiindia.com\/blog\/registration-of-nidhi-company\/\">Nidhi Company<\/a> use the funds it receives?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>The Nidhi Company lends the cash to shareholders in accordance with Nidhi Rules. It lends such funds in the form of small business and financial loans.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Q_Are_Nidhi_Company_deposits_safe_and_secure\"><\/span><span style=\"color: #000080;\"><strong>Q.: Are Nidhi Company deposits safe and secure?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Deposits with such firms are safe and secure since the Ministry of Corporate Affairs and the Reserve Bank of India have established laws and regulations to ensure deposit safety and security. And the Nidhi Company is required to follow the guidelines of the Central Government.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Q_Who_is_eligible_to_become_a_shareholdermember_of_Nidhi_Company\"><\/span><span style=\"color: #000080;\"><strong>Q.: Who is eligible to become a shareholder\/member of Nidhi Company?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Any individual who is over the age of 18 according to the standard age proof can become a member of the Nidhi Companies. A valid ID and address proof are required for anybody interested in becoming a member.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Q_Can_a_minor_be_a_member_of_a_Nidhi_Company\"><\/span><span style=\"color: #000080;\"><strong>Q.: Can a minor be a member of a Nidhi Company? <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>A minor shall not be allowed as a member in a Nidhi company, although deposits in the name of a minor may be accepted if made by a natural or legal guardian who is a member of the particular Nidhi.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Q_Is_it_possible_to_provide_loans_to_non-members\"><\/span><span style=\"color: #000080;\"><strong>Q.: Is it possible to provide loans to non-members? <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>The mutual benefit concept has been to pool the funds of members and lend solely to members, never dealing with non-members.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Q_What_are_the_Nidhi_Companys_Restrictions\"><\/span><span style=\"color: #000080;\"><strong>Q.: What are the Nidhi Company&#8217;s Restrictions?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<h4><span class=\"ez-toc-section\" id=\"Nidhi_Companies_are_not_permitted_to_engage_in_the_following_activities\"><\/span><a href=\"https:\/\/carajput.com\/publications\/nidhi-company-compliance.pdf\">Nidhi Companies<\/a> are not permitted to engage in the following activities:<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p style=\"padding-left: 40px;\">1. They are not permitted to establish chit funds, insurance, or other similar businesses.<\/p>\n<p style=\"padding-left: 40px;\">2. Nidhi Company is not permitted to issue securities such as preference shares, debentures, and so forth.<\/p>\n<p style=\"padding-left: 40px;\">3. They are not permitted to open any current accounts with its members.<\/p>\n<p style=\"padding-left: 40px;\">4 it cannot form a partnership to undertake lending and borrowing activity.<\/p>\n<p style=\"padding-left: 40px;\">5 it is not permitted to purchase another firm.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Q_Can_Nidhi_operate_in_business_other_than_those_listed_above_such_as_Chit_Fund_Hire_Purchase_Insurance_Investing_and_so_on\"><\/span><span style=\"color: #000080;\"><strong>Q.: Can Nidhi operate in business other than those listed above, such as (Chit Fund, Hire Purchase, Insurance, Investing, and so on)?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Nidhi are not to operate in the business of Chit Fund, hire purchase, insurance, or any other business, including investments in shares or debentures.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Q_What_is_the_minimum_number_of_members_required_in_Nidhi_Company\"><\/span><span style=\"color: #000080;\"><strong>Q.: What is the minimum number of members required in Nidhi Company?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Within one year of the beginning of these regulations, each Nidhi should guarantee that it has at least two hundred members.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Q_Can_Nidhi_Company_issue_Preference_Shares\"><\/span><span style=\"color: #000080;\"><strong>Q.: Can Nidhi Company issue Preference Shares?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Nidhi will not issue preferred stock.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Q_Can_a_person_serve_as_a_director_of_the_NIDHI_Company_without_owning_any_stock\"><\/span><span style=\"color: #000080;\"><strong>Q.: Can a person serve as a director of the NIDHI Company without owning any stock?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>The Director must be a Nidhi member. As a result, it is essential for Nidhi Company&#8217;s directors to own shares.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Q_What_is_the_maximum_term_for_a_director_in_Nidhi_Company\"><\/span><span style=\"color: #000080;\"><strong>Q.: What is the maximum term for a director in Nidhi Company?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The Director of a Nidhi shall serve on the Board of Nidhi for a term of up to 10 years. The Director will be eligible for re-appointment only after two years of not serving as a Director.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Q_What_is_the_minimum_nominal_value_of_Nidhi_Companys_shares\"><\/span><span style=\"color: #000080;\"><strong>Q.: What is the minimum nominal value of Nidhi Company&#8217;s shares?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Each Nidhi must issue equity shares with a nominal value of at least 10 rupees.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Q_What_is_the_minimum_ownership_requirement_for_deposit_holders\"><\/span><span style=\"color: #000080;\"><strong>Q.: What is the minimum ownership requirement for deposit holders?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Each Nidhi should award at least 10 equity shares or shares worth one hundred rupees to each deposit holder.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Q_What_is_the_highest_amount_that_Nidhi_may_accept_as_a_deposit\"><\/span><span style=\"color: #000080;\"><strong>Q.: What is the highest amount that Nidhi may accept as a deposit?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>A Nidhi shall not accept deposits exceeding twenty times of its Net Owned Funds (NOF) as per its last audited financial statements.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Q_What_is_the_maximum_amount_that_a_Nidhi_can_declare_as_a_dividend\"><\/span><span style=\"color: #000080;\"><strong>Q.: What is the maximum amount that a Nidhi can declare as a dividend?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>A Nidhi may not declare a dividend in excess of 25%, or such greater sum as may be explicitly allowed by the Regional Director for reasons to be stated in writing.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Q_Is_it_legal_for_Nidhi_Company_to_take_over_another_company\"><\/span><span style=\"color: #000080;\"><strong>Q.: Is it legal for Nidhi Company to take over another company?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Nidhi businesses are not permitted to acquire any other company by purchasing its securities. It does not even have the authority to take over another company&#8217;s management or change the composition of its management.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Nidhi Company Frequently Asked Questions Q.: How does the Nidhi Company use the funds it receives? The Nidhi Company lends the cash to shareholders in accordance with Nidhi Rules. It lends such funds in the form of small business and financial loans. Q.: Are Nidhi Company deposits safe and secure? Deposits with such firms are &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[208],"tags":[10013],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/16686"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=16686"}],"version-history":[{"count":6,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/16686\/revisions"}],"predecessor-version":[{"id":16689,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/16686\/revisions\/16689"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=16686"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=16686"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=16686"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}