Format of Intimation letter of Removal of Auditor under section 140 of the Companies, Act, 2013

By Paras Mehra June 13, 2016

This is a format of formal letter that should be sent to existing auditor to remove him under section 140 of the companies act. The format of letter can be downloaded from the online link.

Acceptance of Deposits by Nidhi Company – Rule 11 & 13 of Nidhi Rules, 2014

By Paras Mehra April 20, 2016

Acceptance of deposits is the only reason why Nidhi Company is created by any person, so the rule 11 and 13 automatically becomes the most important rules of Nidhi Rules, 2014. These rules should be followed properly to avoid any hindrance in the business

Net Owned Funds – Rule 3 of Nidhi Rules, 2014

By Paras Mehra April 20, 2016

Rule 3 of Nidhi Rules, 2014 define the term “Net Owned Funds” as an aggregate of paid up equity share capital and free reserves as reduced by accumulated losses and intangible assets appearing in the last audited Balance sheet.

List of Nationalized bank with rate of Interest on Saving Bank Account – Important for Nidhi Company Limited

By Paras Mehra April 20, 2016

From this list of nationalized bank and rate of Interest, you can decide the maximum rate of Interest that can be offered by Nidhi Company on saving account with its members.

Maximum Interest rate on Deposits – Fixed Deposits, Savings and Recurring deposits – Nidhi Rules, 2014

By Paras Mehra April 20, 2016

Every Nidhi company, in order to leverage the deposits, wants to offer maximum interest rate as possible to attract the common investor and member.

Maximum Rate of Interest on Loan – Rule 16 of Nidhi Rules, 2014

By Paras Mehra April 20, 2016

As per rule 16, the rate of Interest to be charged on any loan given by a Nidhi shall not exceed seven and half percent above the highest rate of interest offered on deposits by Nidhi.

General Restriction on Nidhi Companies (Nidhi Ltd) – Rule 6 of Nidhi Rules, 2014

By Paras Mehra April 17, 2016

As per Nidhi rules, there are many restrictions on the working of Nidhi Companies as well like no business of hypothecation.

Branches by Nidhi Company – Rule 10 of Nidhi Rules, 2014

By Paras Mehra April 17, 2016

Nidhi Company is being imposed with a lot of restrictions. The most important restrictions is which directly impact the business of Nidhi Company. Unlike other companies, Nidhi Company is not allowed to open branch.

Requirements for Nidhi Company Registration (Nidhi Ltd) in India

By Paras Mehra April 15, 2016

Nidhi Company is one of the categories of Non-Banking Financial Company (NBFC) that does not require any Reserve Bank license. The Nidhi Company is very easy and cheap to form to register.