After a successful operation, you can get permission to open multiple branch in same state. Unlike other companies, Nidhi Company is not allowed to open a branch without complying with the prescribed conditions.
Eligibility to Open Branch: A Nidhi Company can open branch only if it has earned profits continuously for next three years. Please mark the word “continuous”.
Maximum branches allowed: A Nidhi company is allowed to open up to three branches (within its district) that too when it has earned profits (after tax) for three consecutive years.
In other words, Nidhi company open branches only if:
- It has earned profits in previous three years continuously.
- It can open branches in its district only.
- It can open maximum three branches
- It cannot open any branch outside the district without prior approval.
- It cannot open any branch outside the State.
Prohibition to open any Branch outside State: Nidhi Company shall not open any branch outside the state. Further, if Nidhi has not done any specific compliance, then also it will not be able to open any branch anywhere including district.
- Closure of any Branch: Nidhi Company shall not close any of its branch until it complies with the necessary conditions:
- Advertisement in Newspaper: Nidhi Company will have to publish a advertisement in the newspaper in a place where it carries on business atleast 30 days prior to such closure.
- Publish on Board: fixes a copy of such advertisement or a notice informing such closure of the branch on the notice board of Nidhi for a period of at least thirty days from the date on which advertisement was published.
- Intimation to ROC: Nidhi Company must give intimation to the registrar within thirty days of closure.
Feel free to drop your query here or simply email to: email@example.com