{"id":64,"date":"2018-11-02T13:22:45","date_gmt":"2018-11-02T13:22:45","guid":{"rendered":"http:\/\/corpbiz.io\/learning\/?p=64"},"modified":"2021-10-23T12:28:32","modified_gmt":"2021-10-23T06:58:32","slug":"amendment-rules-2020-of-nidhi-company-registration","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/amendment-rules-2020-of-nidhi-company-registration\/","title":{"rendered":"Nidhi Company Registration: Amendment Rules 2020"},"content":{"rendered":"\n<p class=\"has-drop-cap\">A Nidhi Company is a non-banking Indian finance company which is recognized under section 406 of the Companies Act, 2013. The company\u2019s core pursuit is to borrow and lend money to its members. Nidhi Registration is quite an easy procedure and doesn\u2019t need the approval of \u2018Reserve Bank of India\u2019, unlike RBI regulates NBFC. Nidhi Company Registration is done as per the provision of Companies Act, 2013 as well as Public limited company. Around \u2018<strong>80%\u2019<\/strong> of <a href=\"https:\/\/corpbiz.io\/nidhi-company-registration\"><strong>Nidhi Company Registration<\/strong><\/a> in India is been done in the state of Tamil Nadu.  In this article, we have explained about Nidhi Company Registration: Amendment Rules 2020.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><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><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/amendment-rules-2020-of-nidhi-company-registration\/#Provisions_of_Nidhi_Company-_Facts_to_know\" >Provisions of Nidhi Company- Facts to know<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/amendment-rules-2020-of-nidhi-company-registration\/#Conditions_to_be_fulfilled_for_getting_%E2%80%98Nidhi_status\" >Conditions to be fulfilled for getting \u2018Nidhi\u2019 status<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/amendment-rules-2020-of-nidhi-company-registration\/#What_are_the_types_of_funds_in_Nidhi_Company\" >What are the types of funds in Nidhi Company?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/amendment-rules-2020-of-nidhi-company-registration\/#What_is_the_new_Applicabilitys_on_Nidhi_Company\" >What is the new Applicability\u2019s on Nidhi Company?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/amendment-rules-2020-of-nidhi-company-registration\/#Alteration_of_NDH-3_NDH-1_and_NDH-2_into_E-forms_in_Brief\" >Alteration of NDH-3, NDH-1 and NDH-2 into E-forms in Brief<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/amendment-rules-2020-of-nidhi-company-registration\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Provisions_of_Nidhi_Company-_Facts_to_know\"><\/span>Provisions of Nidhi Company- Facts to know <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><em><strong>Before you approach for Nidhi Registration, you must ensure the following:<\/strong><\/em><\/p>\n\n\n\n<ul><li>Your company must have at least<strong>\u00a0\u20187 shareholders\u2019 and \u20183 directors\u2019<\/strong><\/li><li>The minimum capital required is \u2018<strong>Rs. 5 lakh\u2019<\/strong>, which is to be increased to \u2018<strong>Rs. 10 lakh\u2019<\/strong>\u00a0in the span of one year.<\/li><li>Nidhi Company is regulated by the \u2018<strong><em>Ministry of Corporate Affairs<\/em><\/strong><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Ministry_of_Corporate_Affairs\"><strong><em>[1]<\/em><\/strong><\/a><\/sup><strong>\u2019<\/strong>\u00a0and the registration is done as a public limited company.<\/li><li><strong>No sanction or approval from RBI<\/strong>\u00a0is required for the formation or registration of the company. Nevertheless, RBI can guide and issue directions in the substance relating to deposit acceptance actions.<\/li><li>The principal activities of such companies are to borrow and lend money to its \u2018shareholders\u2019 and \u2018members\u2019.<\/li><li>Every firm recorded its registration as Nidhi needs to add \u2018<strong>Nidhi Limited\u2019<\/strong>\u00a0at the end of the company\u2019s name.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conditions_to_be_fulfilled_for_getting_%E2%80%98Nidhi_status\"><\/span>Conditions to be fulfilled for getting \u2018Nidhi\u2019 status<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Within one year of Nidhi Company\u2019s registration the following given below conditions must be fulfilled:<\/p>\n\n\n\n<ul><li>The requirement of the minimum members in the Nidhi Company is 200 members within one year from the date of commencement.<\/li><li>&nbsp;The net funds owned by the Nidhi Company should be 10 lakh rupees or more.<\/li><\/ul>\n\n\n\n<p>Net owned funds = Addition of Equity share capital and free reserves and deduction of accumulated losses &amp; intangible assets.<\/p>\n\n\n\n<ul><li>The deposits\nof Unencumbered term must be 10% or more than that of the outstanding deposits.<\/li><li>The ratio of\nthe net owned funds to that of deposits shouldn\u2019t be exceeding 1:20.<\/li><\/ul>\n\n\n\n<p>If the above conditions are satisfied by the\nNidhi Company then within 90 days from the first financial year after\nincorporation it should file NDH-1 together with the prescribed fees. These\nforms shall be duly certified by the practicing CA\/ CS\/ CWA.<\/p>\n\n\n\n<p>If the company needs extension by one financial year then within 30 days from the end of the first financial year, he can avail by submitting NDH-2 to the Regional Director. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_types_of_funds_in_Nidhi_Company\"><\/span>What are the types of funds in Nidhi Company?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>As specified above,\nunder Nidhi Company Registration, the member can borrow and lend funds to\/from\nits client. Such funds come in numerous shapes described below:-<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" width=\"576\" height=\"346\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/05\/image-101.png\" alt=\"Types of funds in Nidhi Company\" class=\"wp-image-9216\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/05\/image-101.png 576w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/05\/image-101-300x180.png 300w\" sizes=\"(max-width: 576px) 100vw, 576px\" \/><\/figure><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_new_Applicabilitys_on_Nidhi_Company\"><\/span>What is the new Applicability\u2019s on Nidhi Company? <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The government of India has modified the original Nidhi rules 2014 by over and done with&nbsp;<strong>Nidhi (amendment) rules 2020<\/strong>. By means of new rules, the government has altered the \u2018<strong>NDH forms\u2019<\/strong>&nbsp;which earlier send to \u2018<strong>MCA\u2019<\/strong>&nbsp;as supplement attachments with \u2018<strong>GNL-2\u2019<\/strong>. The government&nbsp;has altered these forms into \u2018<strong>e-forms\u2019<\/strong>.<\/p>\n\n\n\n<p>The New Nidhi (Amendment) Rules have come into force on 10th February, 2020. After the enforcement, all the Nidhi companies essentially need to file the \u2018<strong>NDH-3\u2019<\/strong>, \u2018<strong>NDH-1\u2019<\/strong>, and \u2018<strong>NDH-2<\/strong>\u2019 forms electronically.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/incorporation-procedure-nidhi-company-india\/\">What is Nidhi Company? Know it\u2019s Incorporation Procedure\n<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Alteration_of_NDH-3_NDH-1_and_NDH-2_into_E-forms_in_Brief\"><\/span>Alteration of NDH-3, NDH-1 and NDH-2 into E-forms in Brief<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Until this time, before the amendment, these forms used to send to MCA as an attachment. Even, no other accessory or Annexure was compulsory to attach with these forms. However, after the commencement of these amendments, forms will be altered into&nbsp;<strong>\u2018E-forms\u2019<\/strong>&nbsp;and separate attachments desires to be sent to MCA with each form.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" width=\"591\" height=\"346\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/05\/image-102.png\" alt=\"Alteration of NDH-3\" class=\"wp-image-9217\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/05\/image-102.png 591w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/05\/image-102-300x176.png 300w\" sizes=\"(max-width: 591px) 100vw, 591px\" \/><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\">NDH-1 for Legislative Compliance\u2019s \u2013 Annual Return of Nidhi Companies<\/h3>\n\n\n\n<p><em><strong> There are few attachments that need to be attached with NDH-1 <\/strong><\/em><\/p>\n\n\n\n<p><strong>Those are as follows:- <\/strong><\/p>\n\n\n\n<ul><li>Comprehensive&nbsp;<strong>List of all active members<\/strong>&nbsp;with correct residential address till the year-end from the&nbsp;<strong>date of commencement<\/strong>, and&nbsp;<strong>PAN.<\/strong><\/li><li>Details regarding the amount of deposit acknowledged from each member Category wise. Those categories included&nbsp;<strong>saving<\/strong>&nbsp;amount\/<strong>Fixed<\/strong>&nbsp;amount\/<strong>Recurring<\/strong>&nbsp;amount). This is a mandatory requirement prescribed by the Government concerning the new amendment rules 2020.<\/li><li>Details regarding the breakup of \u2018<strong>unencumbered deposits\u2019<\/strong>&nbsp;preserved in \u2018<strong>Scheduled Commercial Bank\u2019<\/strong>. The list should express all the details including&nbsp;<strong>Bank Name<\/strong>,&nbsp;<strong>Branch<\/strong>, and&nbsp;<strong>Account No.<\/strong><\/li><li>Details regarding the breakup of \u2018unencumbered deposits\u2019 preserved in&nbsp;<strong>\u2018Post Office\u2019<\/strong>. The list should express all the details including&nbsp;<strong>Name<\/strong>,&nbsp;<strong>Post Office Branch<\/strong>,&nbsp;<strong>location<\/strong>, and&nbsp;<strong>Account No<\/strong>.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">NDH-2:- Application for extension of time<\/h3>\n\n\n\n<p><strong><em>There are few attachments that need to be attached with NDH-2.<\/em><\/strong><\/p>\n\n\n\n<p><strong>Those are as follows:- <\/strong><\/p>\n\n\n\n<ul><li>A detailed report on the Board Resolution (with copies) by way of detailed Application of NDH-2 extension. It should mention few answers to questions, those are: \u2013 (a) Why the&nbsp;<strong>shares are not maintained<\/strong>, and (b) why the&nbsp;<strong>200 members have not attained<\/strong>&nbsp;by the company.<\/li><li>Comprehensive list of all active members along with complete residential address till the year-end from the date of commencement, and with<strong>&nbsp;PAN<\/strong>.<\/li><li>Details regarding the breakup amount of&nbsp;<strong>deposit accepted<\/strong>&nbsp;from each member Category wise. Those categories included&nbsp;<strong>saving<\/strong>&nbsp;amount\/<strong>Fixed<\/strong>&nbsp;amount \/<strong>Recurring<\/strong>&nbsp;amount). This is a mandatory requirement prescribed by the Government concerning the new amendment rules 2020.<\/li><li>Answers to all Reasonable interrogations and justification for the application <\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">NDH-3 for Half Year Return of Nidhi Companies<\/h3>\n\n\n\n<p><strong><em>There are few attachments that need to be attached with NDH-3.<\/em><\/strong><\/p>\n\n\n\n<p><strong>Those are as follows:- <\/strong><\/p>\n\n\n\n<ul><li>Copies of&nbsp;<strong>advertisement<\/strong>&nbsp;along with the proof of indication given to&nbsp;<strong>Registrar of Company<\/strong>: \u2013 This attachment has been enumerated with this act in which we need to report concerning the starting or opening of Branch of Nidhi Company in the reporting Half-year<\/li><li>Comprehensive&nbsp;<strong>List of all associates<\/strong>&nbsp;with&nbsp;<strong>PAN<\/strong>&nbsp;in addition to      complete&nbsp;<strong>residential address<\/strong>: -Nidhi Company requires reporting a comprehensive list of members with their PAN numbers and      completing address. This is a mandatory requirement prescribed by the Government concerning the new amendment rules 2020.<\/li><li>Details regarding the amount of deposit accepted from each member Category wise. That category included&nbsp;<strong>saving<\/strong>&nbsp;amount\/<strong>Fixed<\/strong>&nbsp;amount      \/<strong>Recurring<\/strong>&nbsp;amount). This is a mandatory requirement prescribed      by the Government concerning the new amendment rules 2020.<\/li><li>Detailed List of all members who merged or&nbsp;<strong>joined during the half-year period<\/strong>. They should display there complete residential address along with&nbsp;<strong>PAN<\/strong>.<\/li><li> Detailed&nbsp;<strong>List of all members<\/strong>&nbsp;who ceased during the half-year period. They should display there complete residential address along with&nbsp;<strong>PAN<\/strong>. <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The above\ndescribed&nbsp;<strong>Nidhi New Amendment 2020 Rules<\/strong>&nbsp;are one of the most\nimportant to meet the terms of changes. For the reason that government will be\nkeeping eyes on Nidhi company activities from end to end with these changes in\na more substantial manner. Our&nbsp;<a href=\"https:\/\/corpbiz.io\/\"><strong>Corpbiz<\/strong><\/a>&nbsp;group\nwill be at your disposal if you want expert advice on any Nidhi Company Registration\nwith compliance. We will help you to ensure complete process as per your\ndesired activities, ensuring the fruitful and well-timed completion of your\nwork.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/restrictions-on-operating-nidhi-company\/\">\nOperating Nidhi Company; Know about the Restrictions on Nidhi Company\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A Nidhi Company is a non-banking Indian finance company which is recognized under section 406 of the Companies Act, 2013. The company\u2019s core pursuit is to borrow and lend money to its members. Nidhi Registration is quite an easy procedure and doesn\u2019t need the approval of \u2018Reserve Bank of India\u2019, unlike RBI regulates NBFC. Nidhi [&hellip;]<\/p>\n","protected":false},"author":33,"featured_media":9092,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[31],"tags":[33],"acf":{"service_id":"9"},"authorName":"Kandarp Vanita","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/02\/image_2021_02_01T09_09_44_024Z.png","authorDescription":"Kandarp Vanita has done masters in Corporate and Commercial Law from WB National University of Juridical Sciences. She has 3 yrs of experience in drafting legal documents &amp; dissertations. Being a curious reader, she is also passionately into providing legal backups and comprehensive understandings in every aspect of Law to the firms.","postViews":41910,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/64"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/33"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=64"}],"version-history":[{"count":18,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/64\/revisions"}],"predecessor-version":[{"id":37018,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/64\/revisions\/37018"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/9092"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=64"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=64"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=64"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}