Nidhi Company is an Non-Banking Financial Company. The basic business of such a company is to facilitate lending money between the core members of the company. It can be incorporated with a minimum seven members and out of these 7 members, 3 members must be the director of the company. This type of company is identified by the Section 406 of the Companies Act, 2013, it is regulated by the central government.
Everyone likes to saving, and the Nidhi Company is to arise this habit of saving, this means the ‘Nidhi Business’ is a going concern and a certain business as the members always save.
Net Owned Funds in respect of Non-Banking Financial Company, Net owned fund means the amount of capital invested by owner in its business for raising funds.
The Board of Management of a Nidhi company can be easily changed by filing simple forms with the Registrar of Companies. The Board of Management of a Nidhi company controls the activities of the Nidhi company.
According to the law in the Company Act, 2003 in order for any company to be registered in India, the below conditions have to be met.
Members and Directors:
Minimum 7 Members and 3 Directors will be required to start the Incorporation of Nidhi Limited.
The Nidhi Company should have minimum 200 members:
Unique Name:
The name of your business must be unique. The suggested name should not match with any existing companies or trademarks in India.
Minimum Capital Contribution:
There is no minimum capital amount for a company. A company should have an authorized capital of at least Rs. 5 lakh.
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