Nidhi companies are the limited companies registered under Companies Act, 2013..�The word �Nidhi� in Nidhi Company comes from a�word�which means �treasure�.�It�has been incorporated with the aim of- utilizing money in a best possible manner and savings amongst its members, receiving deposits from and lending to its members only for their mutual benefit. and compliance with the rules as prescribed by Central Government. Nidhi company is similar to NBFC.
They are known as mutual benefit societies because their dealings are restricted only to the members
Benefits of Nidhi Company
Why do people register with Nidhi Company?
It is the cheapest and easiest form of NBFC and can be easily formed. It requires minimum seven members including subscribers to incorporate a Nidhi Company.�It shall have the word Nidhi Limited as a part of its name. Like for example XYZ Nidhi Limited.
Conditions need to be satisfied for registration of Nidhi Company
Documents required
Beware of these points before making a nidhi company-