Nidhi company registration requires minimum 7 members in which minimum 3 members will be Directors. All the Nidhi company’s incorporated shall have the last word as “Nidhi Limited” as part of its name. Nidhi Company is too easy and economical to register.
• No External Involvement in Management.
• Helpful for Lower and Middle Classes.
• Low Rates of Interest
• Minimum Documentation and Formalities.
• Secured Investments.
Nidhi Company is a class of NBFCs and RBI is sanctioned to issue directions to them in matters relating to their deposit acceptance activities. However, in recognition of the fact that these Nidhi’s deal with their shareholder-members only, RBI has exempted the notified Nidhi’s from the core provisions of the RBI Act and other directions applicable to NBFCs. Therefore, Nidhi Company is an ideal entity to take deposit from and lend to a specific group of people.
A Nidhi company enjoys better credibility when compared to Mutual Benefit Organizations. Nidhi organizations are enrolled and observed by the Central Government. mutual Benefits Organization are then again represented and observed by State Governments.
A Nidhi company is a legal entity and a juristic person established under the Act. Along these lines, a Nidhi organization has wide legitimate limit and can claim property and furthermore acquire obligations. The individuals (Directors) of a Nidhi organization have no risk to the banks of a Nidhi organization.
The Board of Management of a Nidhi organization can be effortlessly changed by documenting simple form with the Registrar of Companies. The Board of Management of a Nidhi organization controls the exercises of the Nidhi organization.
A Nidhi company being a juristic person, can acquire, own, enjoy and alienate, property in its own name. No member can make any claim upon the property of the Nidhi company as long as it is a going concern.