A Nidhi company is a form of a company which is registered with a motive in taking deposits and lending to its members. Nidhi companies are allowed to borrow from its members and lend to its members. This way members are encouraged to save money and invest them within the company. Nidhi companies are classified as an NBFC (Non-Banking Finance Company) but are exempt from taking license from RBI.
Rupee Investing provides easy registration process of Nidhi company at an affordable prices.
Nidhi Company has following characteristics:
- It is allowed to take loans from members and can lend to only members.
- Minimum 7 members and 3 Directors are required.
- “Nidhi Limited” at the end of a name of company.
- It is registered under Companies act 2013 but RBI monitors all its financial dealings.
- It can not accept deposits or lend from/to non-members.