Know Most Essential Information about Nidhi Company Software

Nidhi rules 2014 were changed by the ministry of corporate affairs through a notification. Many people are not sure about these changes so here in this article we are going to talk about these amendments which have been made.

NIDHI COMPANY

Nidhi Company is a company whose main business is borrowing and lending money strictly among it’s members , it belongs to non-banking finance sector. They are known by many other names like permanent fund, benefit funds, quasi bank, mutual benefit and mutual benefit company. Regulated by ministry of corporate affairs. They are incorporated with the objective of developing habit of savings amongst its members. Nidhi is a Hindi word which means finance or fund. Apart from developing habit of savings their objective is to provide finance among members. Most Nidhi companies use Nidhi Company Software which makes the working of the Nidhi Company so very smooth and efficient. Nidhi company software is multifaceted web based software.

ADVANTAGES

• Starting a Nidhi company is quite easy as the process is simple. • Capital required to start the company is also fairly less. • It does not require RBI approval. • Outsiders don’t intervene in any matter related to the company be it working or any other. • IMPORTANT POINTS RELATED TO NIDHI AMENDMENTS RULES, 2022 • Minimum capital required to start the Nidhi Company is raised to ten lacs now. • One needs to file an application form in NDH-4 within 120 days. • A sum of twenty lacs is required to be kept in net-owned fund. • Nidhi company needs to implement all the amendments made in the Nidhi rules 2022.

AMENDMENTS MADE IN NIDHI COMPANY RULES 2014

Restrictions regarding deposits or making loans and rules regarding their violation. As per the fourth provision company cannot take deposit or make loans to them if:

1. If company do not meet requirement of rule 3A or Nidhi amendments rules 2022 , also if the central government rejects the company’s application in form NDH-4.
2. If any deposit raised is considered to be raised in accordance with chapter 5 of the act.
3. Provisions of rule 3A won’t apply to Nidhi companies formed on or after Nidhi(amendment) Rules ,2022 take effect.

FILING OF DECLARATION

As per newly added regulation 3B, a public corporation wishing to be certified a Nidhi must do Three things which are as following:

1. Submit form NDH-4 within 120 days of company’s establishment.
2. Minimum of 200 members and net owned funds of INR 20 lakhs.
3. Must attach a declaration along with form NDH-4 which should state that company’s director and promoters meet the standards.

CHANGE REGARDING RULES ABOUT CLOSING OF THE BRANCH

Nidhi Company cannot close the branch without proposal along with the plan for paying Existing deposits and recovering loans have been approved by the board of directors, also approval of regional director is required and within 30 days of application regional director needs to give his approval.

Closure information needs to be published in the newspaper at its place of business prior to 30 days of closure and same post has to be put on the notice board for thirty days from the date of publication and registrar needs to be notified within 30 days of closure.

As per new rules of there is an office which is not registered office or branch and Nidhi business is conducted then it needs to be closed within six months

SOME OTHER AMENDMENTS: Apart from these amendments there is some other amendments as well like definition of the branch as well as increase in minimum paid-up equity share capital and few more have been made, we have dealt the main changes in detail here.

CONCLUSION:

Nidhi company new rules are an update to the Nidhi amendments rules, these amendments have been mad for the welfare of the people only and to make the working more standardized.