Given below are the essential conditions that must be met for registering or operating a Nidhi Company.
Requirement before Registration
- Minimum number of shareholders or members – 7
- Minimum number of Directors -3
- The minimum capital requirement is of Rs. 5 lakhs
- DIN for Directors
- Minimum 3 Directors.
- No Preference Shares shall be issued.
- The objective of the company shall be to cultivate the habit of saving by “receiving deposits” from and “lending to” it’s members only for their mutual benefit.
Requirement after Registration
- By the end of the 1st year, the number of members or shareholders of the Nidhi Company must be 200 at least.
- NOF should be more than Rs. 10 lakhs.
- The ratio for NOF to Deposit should be more than 1:20.
- Unencumbered deposits should exceed 10 % of outstanding deposits.