A nidhi company, is one that belongs to the non-banking Indian finance sector and is recognized under section 406 of the Companies act, 2013. They are regulated by Ministry of Corporate Affairs. Reserve Bank of India is empowered to issue directions to them in matters relating to their deposit acceptance activities. Their core business is borrowing and lending money between their members. They are also known as Permanent Fund, Benefit Funds, Mutual Benefit Funds and Mutual Benefit Company. Nidhi means a company which has been incorporated with the object of developing the habit of thrift and reserve funds amongst its members and also receiving deposits and lending to its members only for their mutual benefit.

Benefits of nidhi company are:-

  • Limited RBI Regulations:
    Owing to their non-dealing with the funds of any person other than their members, the regulations imposed upon the Nidhi’s by RBI is limited. These companies follow the Nidhi Rules, 2014 issued by the center in respect of the activities and workings of Nidhi Companies.

  • Limited Capital Requirement:
    The Ministry of Corporate Affairs has done away with the minimum capital requirement of INR 5 Lakhs for Nidhis. It is only after Nidhi Rules, 2014, that mandated the infusion of INR 10 lakhs for such companies.

  • Ease Of Formation:
    Unlike other NBFCs, Nidhis don’t have to obtain a license from RBI. They just have to incorporate themselves as a public company with the MCA, infuse the required amount of capital as per Nidhi Rules, 2014 and they are all set to go.

Companies
One Person Company(OPC)
Private Limited Company
Public Limited Company
Nidhi Company
Producer Company
Section 8 Company
Services
Corporate Advisory
Insolvency & Bankruptcy
NBFC Advisory
Secretarial Audit
Merger and Acquisition
Proprietorship
Partnership
Limited Liability Partnership
Company
ESI Registration
GST Registration
Import Export Code
MSME Registration
Shops & Establishment Act
Business Plan
CMA Report
Credit Rating
Debt Equity
Term Loan
Working Capital Loan
Compliance Management
Patent
Trade Mark
Copyright
Copyright © 2012 www.armsandassociates.com. All Rights Reserved. Designed by Creative Synergy.