Nidhi company
Querist :
Anonymous
(Querist) 06 June 2020
This query is : Resolved
Hello Everyone
Can a poor lady who doesn't have bank account or PAN Card, can become the member of Nidhi company by taking 10 shares in cash.
Thanks
Raj Kumar Makkad
(Expert) 06 June 2020
No. She is required to have not only PAN Card, bank account but also DEMAT Account for purchasing the shares.
Dr J C Vashista
(Expert) 07 June 2020
Read terms and conditions of Nidhi company for purchase / holding its shares .
Raj Kumar Makkad
(Expert) 07 June 2020
What are the Documents required to form a Nidhi Companies?
Following are the documents required for Nidhi Company Registration:
1. Digital Signature Certificate of all the Directors.
2. Directors Identification of all the Directors.
3. Copy of a PAN Card.
4. Copy of Identity Proof (i.e. Voters ID Card, Driving License, Aadhar Card).
5. 2 Passport size photograph.
6. Registered Office Address Proof (Electricity Bill, Telephone Bill).
7. If the registered address is a rented premise then rent agreement with rent receipt.
Rajendra K Goyal
(Expert) 07 June 2020
As per the provisions of the section 406(1) of the Companies Act, 2013, ‘Nidhi Company’ means a ‘company which has been incorporated as a Nidhi with the object of cultivating the habit of thrift and savings amongst its members, receiving deposits from, and lending to, its members only, for their mutual benefit’.
1. Every Nidhi shall issue equity shares of the nominal value of not less the 10 rupees each.
2. Every Nidhi shall allot to each deposit holder at least 10 equity shares or shares equivalent to 100 rupees.
3. No preference shares shall be issued. If preference shares had already been issued by a Nidhi Company before commencement of this Act, such preference shares are to be redeemed in accordance with the terms of issue of such shares
4. A savings account holder and a recurring deposit account holder shall at least 10 equity shares of Rs.10/-.
5. A Nidhi shall not admit a body corporate as a member.
6. Except as otherwise permitted under these rules, every Nidhi shall ensure that its membership is not reduced to less than 200 members at any time.
7. A minor shall not be admitted as a member in a Nidhi company.
8. But deposits may be accepted in the name of minor , if they are made by natural or legal guardian who is a member of the respective Nidhi.
Rajendra K Goyal
(Expert) 07 June 2020
Account, Id proof, are necessary documents of the members.
Sudhir Kumar, Advocate
(Expert) 08 June 2020
read terms. How can you expect someone to do financial trading without PAN caerd.
Querist :
Anonymous
(Querist) 08 June 2020
Dear all
Request you to answer me only if you have incorporated a Nidhi company as none of the reply is in relation to my query.
To clarify further any person who wants loan from Nidhi company or want to give deposit to Nidhi company needs to become member first before entering into transaction.
And for becoming member they need to buy share of nominal vaalue of Rs. 100/-, which have no relation with Demat Account.
Also, they have Aadhaar as an ID and address proof so can u please explain the provision where its written that PAN Card is mandatory.
Thanks
Rajendra K Goyal
(Expert) 08 June 2020
You said:
Request you to answer me only if you have incorporated a Nidhi company as none of the reply is in relation to my query.
Reply:
Request, Nidhi company never incorporated by me.
Please do not read further if this is only necessity for replying.
Ignore further replies in such case.
Rajendra K Goyal
(Expert) 08 June 2020
You said:
To clarify further any person who wants loan from Nidhi company or want to give deposit to Nidhi company needs to become member first before entering into transaction.
Reply:
Yes, it is necessity.
You said
And for becoming member they need to buy share of nominal vaalue of Rs. 100/-, which have no relation with Demat Account.
Reply:
Shares has to be purchased by members.
Rajendra K Goyal
(Expert) 08 June 2020
You said:
Also, they have Aadhaar as an ID and address proof so can u please explain the provision where its written that PAN Card is mandatory
Reply:
Following documents required at the time of registration.
• Copy of PAN of Directors and Shareholders.
• Copy of ID Proof of Directors and Shareholders. (Voter ID, AADHAR, Driving License, Passport)
• Copy of Address Proof of Directors and Shareholders (Bank Statement/ Electricity bill/ Mobile bill/ Telephone Bill)
• Passport size Photographs.
• Property Ownership Documents of Registered office premises:
• If property is owned: Electricity bill, Ownership Documents and NOC (if required)
• If property is rented: Electricity bill , Rent Agreement and NOC
Raj Kumar Makkad
(Expert) 08 June 2020
Is it a prior condition for the experts to first do that work/act/action whatever involved in the query and then to answer?
Rajendra K Goyal
(Expert) 08 June 2020
There is nothing wrong is advising to the point and by mentioning what was asked.
Querist :
Anonymous
(Querist) 08 June 2020
Mr. Rajendra, I think you are taking personally. However, unlike other companies query, yes u can answer better only if u have incorporated Nidhi company. This is because in this we need to follow many more compliances as per Nidhi rules.
Well, thanks for spending so much time in answering my query but I am really sorry as the info u providing is far different from the query I have asked here.
Nevertheless, I really thankyou for giving so much time.
Rajendra K Goyal
(Expert) 09 June 2020
You can avoid any part of the information provided if not of any use for you.
If someone suffering from Cancer / COVID-19/ Cardiac Arrest or any such disease, he must tell his doctor to treat him only if the doctor personally has suffered from cancer/ COVID-19/ Cardiac Arrest or any such disease himself, otherwise he should not treat.
Querist :
Anonymous
(Querist) 09 June 2020
I think unlike others you are unable to understand my part. This is because no one except you is arguing and thus understood that whatever i am asking is some practical difficulty whose answer cant be just searched on google and copy-pasted simply rather can be answered only if someone have faced similar issue.
Also, would like to give reply to your example (About patient and all).
When you go to the hospital then they refer you to the right doctor and only right dr. who have specialised in the concerned disease treats it and thus you cant expect an eye specialist to treat Cancer / Cardiac / any other disease and vice-versa.. So, in short its specialisation alonwith experience (of treating previous cases of such disease), is what matters in the case of the right doctor and thus the question that he can treat only if he has faced such disease is something you are talking absurd. Now you relate your example, modified by me with my case.
Thanks
Raj Kumar Makkad
(Expert) 09 June 2020
You are right in your approach to the effect that an expereinced doctor shall definitely treat better than a new-comer or attaining the knowledge only on the basis of copy-paste from google or elesewhere but onething you must know that the profession of a lawyer is entirely different than a doctor because there are lakhs of laws dealing with lakhs of situations. A young lawyer can give better results than an expereince-holder (senior lawyer), if he has studied that subject better. This happens daily because here interpretation works and not its application. We experts here provide only interpretation and never deal with the practical aspects coming in the way of a sufferer. Such sufferer sshould obtain the personalized paid services of an subjective expert.
Querist :
Anonymous
(Querist) 09 June 2020
Raj sir, Thanks for your valuable inputs and advice. I can understand the same as i myself is Practising Company Secretary and a lawyer with only handful of experience of 7 - 8 years. This example of doctor is taken by Rajendraji and not by me. I asked my query after reading and interpreting all the applicable provisions of Companies Act, 2013 for Nidhi company and all the rules of Nidhi Rules, 2014 and then when found no solution to my query posted it here just with the intention that i will get inputs from certainly consultants from the same field. But Rajedraji is taking otherwise.
Raj Kumar Makkad
(Expert) 09 June 2020
I respect you from core of my heart. You being a professional having double degree than almost all of us have vast knowledge in Companies Act. You know almost all of us deal with civil, criminal, revenue, matrimonial and like cases and have not specialized knowledge like you as you are a Company Secretary. Generally Chartered Accountants and some of the lawyers also deal with the routine matters of Companies Act so better you post your query in taxlawyersclubindia.com
You are always welcome as and when any query within limitation of my knowledge comes. I shall feel happy to attend it..
Querist :
Anonymous
(Querist) 09 June 2020
Thanks a lot sir for the right guidance. I will put my query at taxlawyersclub. Thanks once again.
