What is Nidhi Status and How to apply for Nidhi Company Status? – Myth or reality

Introduction

Earlier in Companies Act, 1956, the central government used to recognise companies as Nidhi Companies based on certain criteria. The criteria were generally the paid up capital, number of members, profitability, etc. Based upon the factors, the government then recognises the company as Nidhi Company and Companies were given the Nidhi status. It was the general practice in those times.

No Nidhi Status Required

Now, with the advent of Companies Act, 2013 companies does not require any Nidhi status, and they are straight away approved with as a Nidhi status subject to rules and regulations as may be prescribed.

Hence, it is very clear, and the myth has been busted that companies require any Nidhi status from the government.

It was the practice of the past and has no relevance under the new current law.

Conclusion

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