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WHAT IS A NIDHI COMPANY?
Nidhi Company is one of the category of Non Banking Financial Company (NBFC) which does not require any Reserve Bank of India (RBI) license. Nidhi Company works through its members. It can accept deposits and lends loans to its members only.
The companies doing Nidhi business, viz. borrowing from members and lending to members only, are known under different names such as Nidhi, Permanent Fund, Benefit Funds, Mutual Benefit Funds and Mutual Benefit Company. Nidhis are more popular in South India and are highly localized single office institutions.
It 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 simple and less complicated. It has been more popular in southern part of India.
ADVANTAGES OF NIDHI COMPANY
Unlike other NBFCs, Nidhis don’t have to obtain a license from RBI. They just have to incorporate themselves as a public company with the MCA with the required capital as per Nidhi Rules 2014.
A Nidhi Company is a legal entity and a juristic person established under the Act. Therefore, a Nidhi company has wide legal capacity and can own property and also incur debts.
Personal assets of the shareholders will not be at risk, in the event of the company facing financial distress. Liability of the shareholder is limited to the unpaid amount on his shareholding.
The loans given to the members are at a lower rate of interest than the market rate. This brings greater savings to the members.
A Nidhi company has ‘perpetual succession’, that is uninterrupted existence until it is legally dissolved. A Nidhi company is unaffected by the death or other departure of any member.
The main aim of such companies is to promote the habit of saving and thrifts among lower and middle section of the society.
What is Included in Our Package
The objective of such a firm would be to imbibe in the members a habit of thrift and saving and the services would only be restricted to its members.
A minimum capital of Rs. 5,00,000 is required to incorporate a Nidhi Company.This can be increased to any amount (no upper limit).
An NBFC company can acquire stocks, shares, debentures & securities from govt. as well local authority or any other marketable securities.
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adivan is web portal of Arivian Business Solutions Private Limited with operations since 2019. adivan is one stop business setup and consulting company, managed by specialized team of Business Analysts,Company Secretaries, Chartered Accountants, Corporate Lawyers and Financial Professionals company headquartered in , India. Having known for our quality of services, delivering the projects on time, we have clients spread across the globe
Our Professionals Will help you in getting your business licenses and Business licenses necessary for smooth running of businesses.
We will make your business to GST Compliance. Returns are required to be filed digitally online through a common portal to be provided by GSTN
We will provide income tax return preparation, Revised return, Responding to Department notices and solving other Income Tax related issues.
We will provide funds for both personal and business. Our funding system gives a credit line facility, enabling you to expand your business to new height.
WHAT ARE THE DOCUMENTS REQUIRED FOR NIDHI COMPANY?
WHAT INCLUDES IN THIS PACKAGE OF NIDHI COMPANY?