A Nidhi Company is a company, which is a non- banking financial sector and it comes under the Companies Act, 2013. This company is formed with a motto to lend and borrow money within its members and it is very easy to form as a company. It requires at least 200 members in a year to get its Nidhi Company status. Their mode of operation is through its members only. It is the easy form of business. Nidhi Companies are regulated by the Ministry of Corporate Affairs (MCA). They are also known as Benefit Fund, Permanent Fund etc.
A minimum of 3 directors and 7 shareholders are required to form a Nidhi company.
The basic requirement of being a Director is that one has to be 18 years of age and a Natural person and should be of sound mind.
Yes, a registered office for starting a Nidhi Company, is required which has to be mentioned while incorporation of the company.
Generally, after getting all the documents and submitting to the concerned person it takes around 20-30 days to get completed with the whole process.
Nidhi Company is regulated under Sec 406 the new Companies Bill, 2012 as passed by Lok Sabha and regulated by the Ministry of Corporate Affairs.