Nidhi Company
Nidhi company is one of the Non-banking financial company (NBFC). However, it does not require a licence from the Reserve bank of India. A Nidhi company takes deposits from its members and lend to its members only for their mutual benefits. It is benefited by saving and utilizing the fund among their members.
A Nidhi company is a separate legal entity and can own property and incur debts. A Nidhi company require a minimum of seven members out of which a minimum of three directors to incorporate. A Nidhi company requires a minimum of 5 lakh rupees as equity share capital to incorporate and the company can’t issue Preference shares. A Nidhi company is registered as a Public limited company and the last word of the company must have “Nidhi limitedâ€.