Things to Know About Nidhi Company
Nidhi Company is a non-banking financial business structure. Nidhi Company performs the functions of lending and borrowing of money within its members where it works through its members only. Nidhi Company is also called as a mutual benefit company. Nidhi Company promotes the art of saving and utilization of funds within its member community. Nidhi company does not require a license of Reserve Bank of India. Companies doing Nidhi Business are also known as Nidhi, Permanent fund, Benefit funds, Mutual Benefit Funds, and Mutual Benefit company . Nidhi Company is recognized under section 406 of the Companies Act, 2013.It is a business structure which comes under 20A of the Companies act,1956 and ruled by the Ministry of Corporate Affairs (MCA). Nidhi Company is formed to increase the habit of savings only for mutual benefit among its member only. The main goal of funding for the Nidhi Company is the contribution from the members. Registration of Nidhi Company is very simp