A Nidhi company is a type of corporation that refers to a non-banking micro-finance firm, according to Section 406 of the Companies Act, 2013. This corporation requires a minimum of seven members, three of whom will be directors. Nidhi firms must have the words "Nidhi Limited" at the end of their names.This business is also known as a permanent fund, benefit fund, or Mutual Fund Company. These businesses exclusively deal with their shareholders. Nidhi's mission is to encourage financial prudence and offer members with a source of reserve cash. Nidhi will take deposits and lend money to its members as long as their interests are protected.
There are several advantages to Nidhi Company Registration, including the ease of incorporation, low registration costs, and the avoidance of RBI restrictions, which means less compliance and a lower degree of risk. By giving lower interest rates on loans than the market, the Nidhi Company hopes to encourage members to save more. The Nidhi Company offers safe investments.
Sujata Associates would be the greatest legal advisor and supporter for establishing a Nidhi business. Our great professionals will assist you with registration and documentation. The procedure is straightforward and simple. This organisation will offer you with the most reliable and trustworthy Nidhi company registration or any other company registration in town.
Un-encumbered term deposits. Every Nidhi shall invest and continue to keep invested, in unencumbered term deposits with a Scheduled commercial bank (other than a co-operative bank or a regional rural bank), or post office deposits in its own name an amount which shall not be less than ten percent of the deposits outstanding at the close of business on the last working day of the second preceding month.
If the failure to comply with these rules, Nidhi shall not accept any further deposits from the commencement of the second financial year till it complies with the provisions contained in this rule, besides being liable for penal consequences as provided in the Act.
