How much money do I need to start a Nidhi Company?

How much money do I need to start a Nidhi Company?

The companies doing Nidhi business, viz. borrowing from members and lending to members only, are known under different names such as Nidhi, Permanent Fund, Benefit Funds, Mutual Benefit Funds and Mutual Benefit Company.

Requirements for Nidhi Company :

A Nidhi company to be incorporated under this Act shall be a Public Company; It shall have a minimum paid up equity share capital of Rs.5,00,000/-;

No preference shares shall be issued.

The object of the company shall be cultivating the habit of thrift and savings amongst its members, receiving deposits from and lending to its members only for their mutual benefits;

It shall have the words ‘Nidhi Limited’ as part of its name.

after Incorporation you must have NET OWNED FUNDS OF 10 LAC


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