A Nidhi Company is a type of company registered under the Companies Act, 2013 in India, with the sole objective of promoting thrift and savings among its members. The term “Nidhi” is derived from Hindi, meaning finance or fund. Nidhi companies are allowed to accept deposits from their members and lend only to their members, making it a mutual benefit company.
Nidhi Companies are categorized as Non-Banking Financial Companies (NBFCs) and require a license to operate. However, unlike other NBFCs, the license for Nidhi Companies is granted by the registered firm itself, not by the Reserve Bank of India (RBI). The registration process for a Nidhi Company is relatively simple and inexpensive.
There are no specific qualifications required to register a Nidhi Company. These companies provide benefits to their registered members who work with the company. Nidhi Companies are also known by different names such as Nidhi, Permanent Fund, Benefit Funds, Mutual Benefit Funds, and Mutual Benefit Company. They are particularly popular in South India and are typically localized with a single office or commercial location.
No matter what type of business you want to run or the industry you belongs to, Bhakat Associates will take care of the registration process with our easy and affordable services.