What is Nidhi Company?
Nidhi Company is a Non-Banking Financial Company (NBFC) which does not require any license from the RBI. The Nidhi Company is very easy and cheap to form to register. Anybody can register a Nidhi Company; there is no background check, nor are there did any prescribed qualifications for its owners. Nidhi Companies cannot deal with anybody other than its members.
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Nidhi Company Registration
“Nidhi” is a Hindi word, which means finance or fund. 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..Nidhi company registration requires minimum 3 members. All the Nidhi company’s incorporated shall have the last word as “Nidhi Limited” as part of its name. Nidhi company is easy and economical to register.
Nidhi company requires minimum 3 members. It might not issue preference share. If preference shares have already been issued by a Nidhi Company before initiation of this Act, such preference shares are to be redeemed in accordance with the terms of issue of such shares. All the Nidhi company’s incorporated shall have the last word as “Nidhi Limited” as part of its name
Choose Nidhi Company because:
No External Involvement in Management
Helpful for Lower and Middle Classes
Low Rates of Interest
Minimum Documentation and Formalities