Nidhi Company
A Nidhi company is a type of company which is belongs to the non-banking Indian Finance Sector. Nidhi Company is recognized under section of the Companies Act, 2013. The other name of Nidhi Company are Permanent Fund, Benefit Funds, Mutual Benefit Funds and Mutual Benefit Company.
The single business of Nidhi Company are borrowing and lending money between their members. Nidhi Companies are regulated by Corporate Affairs Ministry.
A Nidhi to be incorporated under the act shall be a public company and shall have a minimum paid up equity share capital of 5 lakh rupees.
Advantage of nidhi company
- Easy to form
- Low interest rate
- Less government intervention
- No need of rbi approval
- Capital requirement is very limited
