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N. K. Gupta posted an Question
July 04, 2021 • 15:40 pm 30 points
  • UGC NET
  • Commerce

Dormant company and nidhi company and small company define please

dormant company and nidhi company and small company define please

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    Ronak kumari upadhyay Best Answer

    Dear student 1.Dormant- In common parlance, the word Dormant means inactive or inoperative. A dormant company is an excellent opportunity to start a company for a future project or hold an asset/intellectual property without having significant accounting transactions 2.. Nidhi in the Indian context language means TREASURE.However, in the Indian financial sector it refers to any mutual benefit society notified by the Central / Union Government as a Nidhi Company. They are created mainly for cultivating the habit of thrift and savings amongst its members. Nidhi 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, and Which complies with rules of Chapter XXVI of Companies Rules, 2014. 3. small companies by enhancing the paid-up capital base from the existing limit of Rs 50 lakh to Rs. 2 crores. The move is likely to get more companies under the 2019 category and benefit them in terms of the compliance requirements. While the capital base limit is proposed to be increased to Rs 2 crores, the turnover threshold is also proposed to be enhanced from Rs 2 crores to Rs 20 crores.. Hope it is clear.

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