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The Nidhi Company is a Non-Banking Financial Company (NBFC) that is regulated by the Ministry of Corporate Affairs. Its main objective is to provide savings and loan products to its members

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The Nidhi Company is a type of Indian non-banking finance company. It is recognized under the section 406 of the Companies Act, 2013. The business of the Nidhi Company is to lend and borrow money between its members. It is also known as a Permanent Fund, Mutual Benefit Fund, or Benefit Fund. If you are looking for a mutual benefit fund, you can start your search online to find the best one in your state.

A Nidhi Company is a separate legal entity. It is a registered Mutual Benefit Society that can acquire assets and services in its own name. It has limited liability, meaning that members are only liable for their shares in the company. This means that any personal liabilities of the members cannot be used to pay off the company’s liabilities. As a mutual benefit society, the Nidhi Company can borrow money from its shareholders, thus enabling its members to obtain loans at lower interest rates.

The Nidhi company must file financial statements within 30 days of incorporation. It must also file audit reports and ROC balance sheets. The annual return must be filed 60 days after the Annual General Meeting. It must also provide a list of members. The Nidhi Company may have up to three branches in the state of incorporation. These branches must be approved by the Regional Director. They cannot be outside of the state of incorporation.

 

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