{"id":3543,"date":"2019-02-21T12:55:51","date_gmt":"2019-02-21T07:25:51","guid":{"rendered":"https:\/\/swaritadvisors.com\/learning\/?p=3543"},"modified":"2020-07-01T12:36:20","modified_gmt":"2020-07-01T07:06:20","slug":"things-to-know-about-latest-updates-on-nidhi-company","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/learning\/things-to-know-about-latest-updates-on-nidhi-company\/","title":{"rendered":"Things to know about Latest Updates on NIDHI Company"},"content":{"rendered":"\n<p class=\"has-drop-cap\">If you think to start your own business in the finance sector that also within a reasonable amount, then you need to know about <strong>Nidhi Company in India<\/strong> and the <strong>latest updates on Nidhi Company<\/strong>.<\/p>\n\n\n\n<p style=\"text-align:left\">In India, Nidhi company is recognized <strong>under the provision of section 406 of the Companies Act, 2013<\/strong>. Nidhi Company is a form of Public limited company. This type of company has the <em>objective of increasing thrift and savings among its member<\/em>.<\/p>\n\n\n\n<p>In this blog, we will briefly discuss various <strong>aspects of Nidhi Company<\/strong> and Latest updates made by the Government on Nidhi Company.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2dd174409c8\" 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: #999;color:#999\" 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: #999;color:#999\" 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-6a2dd174409c8\"  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:\/\/swaritadvisors.com\/learning\/things-to-know-about-latest-updates-on-nidhi-company\/#What_is_Nidhi_Company\" title=\"What is Nidhi Company?\">What is Nidhi Company?<\/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:\/\/swaritadvisors.com\/learning\/things-to-know-about-latest-updates-on-nidhi-company\/#Structure_of_Nidhi_Company_in_India\" title=\"Structure of Nidhi Company in India\">Structure of Nidhi Company in India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/swaritadvisors.com\/learning\/things-to-know-about-latest-updates-on-nidhi-company\/#What_are_the_Basic_Requirements_of_a_Nidhi_Company\" title=\"What are the Basic Requirements of a Nidhi Company?\">What are the Basic Requirements of a Nidhi Company?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/swaritadvisors.com\/learning\/things-to-know-about-latest-updates-on-nidhi-company\/#Advantages_of_Nidhi_Company_in_India\" title=\"Advantages of Nidhi Company in India\">Advantages of Nidhi Company in India<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/swaritadvisors.com\/learning\/things-to-know-about-latest-updates-on-nidhi-company\/#Limited_RBI_regulations\" title=\"Limited RBI regulations \">Limited RBI regulations <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/swaritadvisors.com\/learning\/things-to-know-about-latest-updates-on-nidhi-company\/#Capital_requirement\" title=\"Capital requirement\">Capital requirement<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/swaritadvisors.com\/learning\/things-to-know-about-latest-updates-on-nidhi-company\/#Ease_of_Formation\" title=\"Ease of Formation\">Ease of Formation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/swaritadvisors.com\/learning\/things-to-know-about-latest-updates-on-nidhi-company\/#The_low_rate_of_interest_on_the_loan\" title=\"The low rate of interest on the loan\">The low rate of interest on the loan<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/swaritadvisors.com\/learning\/things-to-know-about-latest-updates-on-nidhi-company\/#Restriction_on_outsider_intervention\" title=\"Restriction on outsider intervention\">Restriction on outsider intervention<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/swaritadvisors.com\/learning\/things-to-know-about-latest-updates-on-nidhi-company\/#What_are_the_latest_Updates_on_NIDHI_Company\" title=\"What are the latest Updates on NIDHI Company?\">What are the latest Updates on NIDHI Company?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/swaritadvisors.com\/learning\/things-to-know-about-latest-updates-on-nidhi-company\/#Notification_No_GSR_465E\" title=\"Notification No. G.S.R 465(E)\">Notification No. G.S.R 465(E)<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/swaritadvisors.com\/learning\/things-to-know-about-latest-updates-on-nidhi-company\/#Section_202_of_Companies_Act_2013-_Service_of_Documents\" title=\"Section 20(2) of Companies Act, 2013- Service of Documents\">Section 20(2) of Companies Act, 2013- Service of Documents<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/swaritadvisors.com\/learning\/things-to-know-about-latest-updates-on-nidhi-company\/#Clause_b_of_Section_471_of_Companies_Act_2013-_Voting_rights\" title=\"Clause (b) of Section 47(1) of Companies Act, 2013- Voting rights\">Clause (b) of Section 47(1) of Companies Act, 2013- Voting rights<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/swaritadvisors.com\/learning\/things-to-know-about-latest-updates-on-nidhi-company\/#Section_671_of_Companies_Act_2013_%E2%80%93_Restrictions_on_Purchase_of_Shares\" title=\"Section 67(1) of Companies Act, 2013 &#8211; Restrictions on Purchase of Shares\">Section 67(1) of Companies Act, 2013 &#8211; Restrictions on Purchase of Shares<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/swaritadvisors.com\/learning\/things-to-know-about-latest-updates-on-nidhi-company\/#_Section_123_5_of_Companies_Act_2013_%E2%80%93_Declaration_of_Dividend\" title=\"&nbsp;Section 123 (5) of Companies Act, 2013 &#8211; Declaration of Dividend&nbsp;\">&nbsp;Section 123 (5) of Companies Act, 2013 &#8211; Declaration of Dividend&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/swaritadvisors.com\/learning\/things-to-know-about-latest-updates-on-nidhi-company\/#Section_127_of_Companies_Act_2013_%E2%80%93_Levy_of_Punishment_for_failure_to_distribute_the_dividends\" title=\"Section 127 of Companies Act, 2013 &#8211; Levy of Punishment for failure to distribute the dividends\">Section 127 of Companies Act, 2013 &#8211; Levy of Punishment for failure to distribute the dividends<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/swaritadvisors.com\/learning\/things-to-know-about-latest-updates-on-nidhi-company\/#Section_136_1_of_Companies_Act_2013_%E2%80%93_Right_of_Member_to_copies_of_audited_financial_statement\" title=\"Section 136 (1) of Companies Act, 2013 &#8211; Right of Member to copies of audited financial statement\">Section 136 (1) of Companies Act, 2013 &#8211; Right of Member to copies of audited financial statement<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/swaritadvisors.com\/learning\/things-to-know-about-latest-updates-on-nidhi-company\/#Section_160_of_Companies_Act_2013_%E2%80%93_Retiring_directors_to_stand_for_directorship\" title=\"Section 160 of Companies Act, 2013 &#8211; Retiring directors to&nbsp; stand for directorship\">Section 160 of Companies Act, 2013 &#8211; Retiring directors to&nbsp; stand for directorship<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/swaritadvisors.com\/learning\/things-to-know-about-latest-updates-on-nidhi-company\/#Section_185_of_The_Companies_Act_2013_%E2%80%93_Loan_to_Director\" title=\"Section 185 of The Companies Act, 2013 &#8211; Loan to Director\">Section 185 of The Companies Act, 2013 &#8211; Loan to Director<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/swaritadvisors.com\/learning\/things-to-know-about-latest-updates-on-nidhi-company\/#Section_197_of_Companies_Act_2013_%E2%80%93_Overall_Maximum_managerial_remuneration_in_case_of_absence_or_inadequacy_of_profits\" title=\"Section 197 of Companies Act,&nbsp; 2013 &#8211; Overall Maximum managerial remuneration in case of absence or inadequacy of profits\">Section 197 of Companies Act,&nbsp; 2013 &#8211; Overall Maximum managerial remuneration in case of absence or inadequacy of profits<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/swaritadvisors.com\/learning\/things-to-know-about-latest-updates-on-nidhi-company\/#Section_403_of_Companies_Act_2013_%E2%80%93_Filing_Fee\" title=\"Section 403 of Companies Act,&nbsp; 2013 &#8211;&nbsp; Filing Fee\">Section 403 of Companies Act,&nbsp; 2013 &#8211;&nbsp; Filing Fee<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/swaritadvisors.com\/learning\/things-to-know-about-latest-updates-on-nidhi-company\/#Notification_No_GSR_43E\" title=\"Notification No. G.S.R 43(E)&nbsp;\">Notification No. G.S.R 43(E)&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/swaritadvisors.com\/learning\/things-to-know-about-latest-updates-on-nidhi-company\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_Nidhi_Company\"><\/span>What is Nidhi Company?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Nidhi companies are Non-banking financial companies which <strong>do not require any license from Reserve Bank of India<\/strong>. Nidhi company borrows and lends money to its members only. Such type of companies are also commonly known as mutual benefit companies. A Nidhi company promotes the concept of saving and utilization of funds within its member.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Structure_of_Nidhi_Company_in_India\"><\/span><strong>Structure of Nidhi Company in India<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>As we discussed above, <strong>Nidhi Company is a Non-banking financial company<\/strong>. However, under the Companies Act, 2013, there are certain legal structures of a Nidhi Company. Following are some of them:<\/p>\n\n\n\n<div id=\"Nidhi_Rules\" class=\"shadow3\">\n<ul>\n<li><em>It is a form of Public limited company<\/em><\/li>\n<li><em>Ministry of Corporate Affairs regulates the Nidhi Company<\/em><\/li>\n<li><em>Every Nidhi Company is governed under the Nidhi Rules,2014<\/em><\/li>\n<li><em>Only members of Nidhi Company are allowed to lend and borrow money. <\/em><\/li>\n<li><em>RBI License is not necessary to start a Nidhi company.<\/em><\/li>\n<li><em>Nidhi company belongs to the NBFC sector (Non-banking financial sector)<\/em><\/li>\n<li><em>Approval of RBI is not mandatory for registration of Nidhi company<\/em><\/li>\n<\/ul>\n<\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_Basic_Requirements_of_a_Nidhi_Company\"><\/span><strong>What are the Basic Requirements of a Nidhi Company?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Companies Act, 2013 and rules and regulations of the Ministry of Corporate affairs lay down certain <strong>requirements for Nidhi Companies<\/strong>. If you are interested in starting a Nidhi Company, then you must fulfill those requirements. Following are the requirements of\u00a0 Nidhi Company:<\/p>\n\n\n\n<ul><li>Name of the company must contain the word &#8220;<strong>Nidhi Ltd<\/strong>&#8220;;<\/li><li>The company shall be a Public Company;<\/li><li>Minimum paid-up capital of Rs 5 lakh is necessary;<\/li><li>Non-issuance of any preference shares;<\/li><li>In case, any preference shares had been issued before the commencement of Companies Act, 2016, then such shares will be redeemed.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Advantages_of_Nidhi_Company_in_India\"><\/span><strong>Advantages of Nidhi Company in India<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>If you want to start a Nidhi company then you become eligible to avail a number of advantages. However, below is the list of the <strong>advantages of\u00a0 a Nidhi Company<\/strong>:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Limited_RBI_regulations\"><\/span><strong>Limited RBI regulations <\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Regulations imposed on Nidhis by Reserve Bank of India is limited.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Capital_requirement\"><\/span><strong>Capital requirement<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>As per the provision of the Ministry of Corporate Affairs, the minimum capital requirement of Nidhi Company is Rs 5 Lakhs. However, under the Nidhi Rules, 2014 the capital requirement is increased up to Rs 10 lakhs.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Ease_of_Formation\"><\/span><strong>Ease of Formation<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>A Nidhi company, unlike other Non-banking financial company, is not required to obtain RBI license. However, it is compulsory for such <strong>Nidhi company<\/strong> to register itself as a public company with the Ministry of Corporate Affairs.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_low_rate_of_interest_on_the_loan\"><\/span><strong>The low<\/strong><strong> rate of interest on the loan<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><em>Members of\u00a0 Nidhi company get a loan at a very lower rate of interest.<\/em><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Restriction_on_outsider_intervention\"><\/span><strong>Restriction on outsider intervention<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>A Nidhi Company is formed for its members only. Any outsider is prohibited and not allowed to intervene in the working of the Nidhi Company. An outsider can neither deposit money nor avail <strong>loan from a Nidhi Company<\/strong>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_latest_Updates_on_NIDHI_Company\"><\/span>What are the latest Updates on NIDHI Company?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Notification_No_GSR_465E\"><\/span>Notification No. G.S.R 465(E)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The <em>Ministry of Corporate Affairs (MCA) on 5th January 2015 issued Notification No. G.S.R 465(E) in respect of Nidhi Companies<\/em>. The Notification proposed to provide certain exceptions, adaptation and to modify certain sections of The <strong>Companies Act, 2013<\/strong> <a href=\"http:\/\/www.mca.gov.in\/Ministry\/pdf\/CompaniesAct2013.pdf\">[1]<\/a> . This notification was issued to provide some exemptions to the Nidhi Companies. Following are the list of those sections and exemptions provided under the Notification:<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Section_202_of_Companies_Act_2013-_Service_of_Documents\"><\/span>Section 20(2) of Companies Act, 2013- Service of Documents<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>This section deals with the provision of Service of Documents. Now as per the <em><strong>notification No. G.S.R 465(E)<\/strong><\/em>, this section will apply to Nidhi Companies. However, the document will serve only on members of the Nidhi Companies who have shares of more than Rs. 1000 in the face value or more than 1 percent of the total paid-up share capital of the Nidhi company.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Clause_b_of_Section_471_of_Companies_Act_2013-_Voting_rights\"><\/span><strong>Clause (b) of Section 47(1) of Companies Act, 2013- Voting rights<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>According to the above <strong><em>Notification, Clause (b) of Section 47(1)<\/em><\/strong> shall apply to Nidhi Companies subject to the modification that members cannot exercise voting rights in excess of 5 percent of total voting rights of equity shareholders.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Section_671_of_Companies_Act_2013_%E2%80%93_Restrictions_on_Purchase_of_Shares\"><\/span><strong>Section 67(1) of Companies Act, 2013 &#8211; Restrictions on Purchase of Shares<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p><div id=\"borrower\"><p>This section shall not apply to the Nidhi Companies where the Company purchases shares from a member after his ceasing\/stopping as a depositor and <strong>borrower<\/strong>. It will never consider as a reduction of capital.<\/p><\/div><\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"_Section_123_5_of_Companies_Act_2013_%E2%80%93_Declaration_of_Dividend\"><\/span><strong>&nbsp;Section 123 (5) of Companies Act, 2013 &#8211; Declaration of Dividend&nbsp;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>In the <strong><em>notification No. G.S.R 465(E)<\/em><\/strong>, it was mentioned that in the case of Nidhi Companies, dividend payable in cash must be paid by crediting same to the account of the member. However, it is necessary that the dividend was not claimed within 30 days from the date of the declaration of the dividend.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Section_127_of_Companies_Act_2013_%E2%80%93_Levy_of_Punishment_for_failure_to_distribute_the_dividends\"><\/span><strong>Section 127 of Companies Act, 2013 &#8211; Levy of Punishment for failure to distribute the dividends<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>This <strong>Section will apply to Nidhi Companies<\/strong> subject to the modification that the dividend payable to a member of the Nidhi Companies is 100 Rupees or less than that.<\/p>\n\n\n\n<p>However, there shall be <strong><em>compliance of the provisions of this Section<\/em><\/strong>, where the declaration of the dividend is published in the local newspaper and in the local language.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Section_136_1_of_Companies_Act_2013_%E2%80%93_Right_of_Member_to_copies_of_audited_financial_statement\"><\/span><strong>Section 136 (1) of Companies Act, 2013 &#8211; Right of Member to copies of audited financial statement<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>If any members of a Nidhi Company do not individually or jointly hold a share of more than 1000 rupees in the face value or more than 1 percent of the total <strong>paid-up share capital of the Nidhi company<\/strong>. However, There shall be sufficient compliance with the provision of this section if:<\/p>\n\n\n\n<ul><li>The intimation is sent by public notice in a newspaper in the district in which the <strong>registered office of the Nidhi Company situates<\/strong>.<\/li><li>The financial statement with its enclosures shall be inspected at the registered office of the Nidhi Company.<\/li><li>The financial statement with enclosures is affixed in the Notice Board of the Nidhi Company.<\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Section_160_of_Companies_Act_2013_%E2%80%93_Retiring_directors_to_stand_for_directorship\"><\/span><strong>Section 160 of Companies Act, 2013 &#8211; Retiring directors to&nbsp; stand for directorship<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p><strong>&nbsp;<\/strong>The above Notification made some changes in the section in terms of amount. Earlier it was 1 lakh rupees which have now been substituted to Rs.10,000. The Central Government reduced the quantum of the amount. A person who is not a retiring director and who proposes to declare himself as a director shall signify himself as a director after depositing Rs.10,000.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Section_185_of_The_Companies_Act_2013_%E2%80%93_Loan_to_Director\"><\/span><strong>Section 185 of The Companies Act, 2013 &#8211; Loan to Director<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<ul><li>It is not compulsory for a Nidhi Company to comply with the provisions of Section 185 of the Companies Act, 2013 if a Nidhi Company fulfills the following conditions:<\/li><li>Where the loan is given to a director or his relative in their capacity as members<\/li><li>There is proper disclosure of such loan transaction in annual accounts<\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Section_197_of_Companies_Act_2013_%E2%80%93_Overall_Maximum_managerial_remuneration_in_case_of_absence_or_inadequacy_of_profits\"><\/span><strong>Section 197 of Companies Act,&nbsp; 2013 &#8211; Overall Maximum managerial remuneration in case of absence or inadequacy of profits<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>The remuneration of a director who is either not a managing director or not a whole time director may be paid by way of monthly payment subject to the <strong>approval of the Nidhi Company in general meeting<\/strong>. However, Section 197 provides that there is no necessity of approval of the company in a matter of\u00a0 general meeting if :<\/p>\n\n\n\n<ul><li>A Nidhi company does not have a managing director or whole time director or manager<\/li><li>Remuneration payable in a financial year to the <strong>directors of the Nidhi company<\/strong> does not exceed 10 percent of the net profits of such Nidhi or 15 lakh rupees whichever is less.<\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Section_403_of_Companies_Act_2013_%E2%80%93_Filing_Fee\"><\/span><strong>Section 403 of Companies Act,&nbsp; 2013 &#8211;&nbsp; Filing Fee<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>As per the Notification issued by <strong>MCA<\/strong><a rel=\"nofollow noopener noreferrer\" href=\"http:\/\/www.mca.gov.in\/\" target=\"_blank\">,<\/a> in case of a Nidhi Company, <em>the filing fees in respect of the return of allotment will calculate at the rate of\u00a0 1 rupee for every 100 rupees<\/em>. However, the rate shall not exceed the normal amount of filing fee.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Notification_No_GSR_43E\"><\/span><strong>Notification No. G.S.R 43(E)&nbsp;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Recently, Ministry of Corporate Affairs on 22 January 2019, issued <em>Notification No. G.S.R 43(E)<\/em>. As per this notification, all unlisted public companies have to demat all their shares before 1st April 2019. The term Demat means holding of shares in electronic form. However, under this notification, Nidhi Companies are exempted from complying with compulsory dematerialization rules.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Nidhi Company is one of the best Non-banking finance companies which is easy to start at a<strong> low capital requirement<\/strong>. It is very helpful for lower and middle-class people. It is beneficial for long term gains due to its nature of investment and procedures.\u00a0 Due to the lower rate of interest, nowadays many people show their interest in Nidhi Company. There is no specific restriction to become a member of any Nidhi Company.\u00a0 On account of restriction on an outsider, a good relationship exists between the Nidhi company and its members.<\/p>\n\n\n\n<p>Swarit Advisors provides world&#8217;s best service in a matter of <strong><a href=\"https:\/\/swaritadvisors.com\/nidhi-company-registration\">Nidhi Company registration<\/a><\/strong> and compliances. If you want to no more about Nidhi Company, kindly <a href=\"https:\/\/swaritadvisors.com\/\">contact us<\/a>.<\/p>\n\n\n\n<div class=\"read\"><p><b>Also, Read:<\/b> <mark><a href=\"https:\/\/swaritadvisors.com\/learning\/compliances-of-nidhi-company\/\" target=\"_blank\" rel=\"noopener noreferrer\">Compliances of Nidhi Company<\/a><\/mark>.<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>If you think to start your own business in the finance sector that also within a reasonable amount, then you need to know about Nidhi Company in India and the latest updates on Nidhi Company. In India, Nidhi company is recognized under the provision of section 406 of the Companies Act, 2013. Nidhi Company is [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":3552,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[153],"tags":[379,154,697],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/3543"}],"collection":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/comments?post=3543"}],"version-history":[{"count":20,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/3543\/revisions"}],"predecessor-version":[{"id":11373,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/3543\/revisions\/11373"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/media\/3552"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/media?parent=3543"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/categories?post=3543"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/tags?post=3543"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}