Nidhi Company Registration – An Overview

Nidhi Company is the blessing in disguise for those people who are interested in beginning the loan/finance business in India as it ensures ease and affordability factor as well.

Nidhi Company Registration is a procedure through which the incorporation of type of NBFC called Nidhi can be made possible. Another name of this NBFC is the Mutual Benefit Finance Company. Furthermore, this incorporation takes place under the provisions of Companies Act, 2013.

The business of Nidhi Company is concerned with the acceptance of deposits and lending of money. As compared to the registration processes of other NBFCs, This registration process is an easy one. In respect of taxation and annual compliances, Nidhi companies enjoy the benefit of specific exemptions. Nidhi Company incorporation will invigorate the feeling of savings as well as smart spending in the mind of its members.

Widely known as Nidhi Bank, Nidhi companies endeavors to cultivate the values of thrift amongst their members. Rules related to Nidhi Company suggest that it can proceed further for the transactions within restricted boundaries of work and only with its registered members.

Moreover, it's not wrong to say that these companies acquire from their members and confer to their members. Nidhi company activities come under the ambit of RBI. In this category of NBFC, Directors are free from the shackles of eligibility norms of least qualification. At the end of the name of all the Nidhi Companies, Nidhi Ltd. must be there at any cost.

Key Points Circumscribing Nidhi Company Registration