Nidhi Company is a non-banking financial business structure. Nidhi Company performs the functions of lending and borrowing of money within its members where it works through its members only. Nidhi Company is also called as a mutual benefit company. Nidhi Company promotes the art of saving and utilization of funds within its member community. Nidhi company does not require a license of Reserve Bank of India. Companies doing Nidhi Business are also known as Nidhi, Permanent fund, Benefit funds, Mutual Benefit Funds, and Mutual Benefit company. Nidhi Company is recognized under section 406 of the Companies Act, 2013. It is a business structure which comes under 20A of the Companies act,1956 and ruled by the Ministry of Corporative Affairs(MCA).
The objective of incorporating a Nidhi Company is to encourage savings as well as frugality amongst its members. To fulfill this objective of cultivating the habit of saving and thrift amongst its members. Nidhi companies are allowed to take a deposit from and lend to the members only. In other words, the funds contributed to a Nidhi company come only from its members (shareholders) and are to be used only by the shareholders of the Nidhi Company.
Nidhi Company is a certain category of NBFC. Though not directly regulated by the RBI, still RBI has powers to issue directives for them related to their deposit acceptance activities. Moreover, because these Nidhis deal with their shareholder-members only, they have been exempted from the core provisions of the RBI Act and other directions applicable to NBFCs. Therefore, Nidhi Company is an ideal legal entity to take a deposit from and lend to a specific group of people.
Private Ltd. is one among the highly recommended ways to start out a business in India. This sort of company offers liability for its shareholders with certain restrictions placed on the ownership.Read More
A trademark is business mark and it may be a visual symbol, which can be a word, name, device, label or numeral employed by a business to differentiate its goods or services from other similar products or services originating from a special business.Read More
Advantage of Company and a Partnership. Owner of LLP enjoys feature of partnership firm and befit of limited liability of companies due to these two feature LLP is popular among small business feature.Read More
In India, a non-profit organization are often registered as Trust by forming a deed called trust deed or as a Society under the Registrar of Societies by creating by-laws, or as a company with object of non-profit under Section 8 Company of the C.A., 2013.Read More
Get your GST Number registration online through InternationalTaxations.com. Our Export will help in & documentation, filing and follow up with department. Organization with annual revenue of Rs.20 lakhs or more must take GST registration. get your GSTIN number online in less than 5 working days.Read More
As per the GST law, every individual/Company/LLP registered under the GST Act has got to furnish the small print of sales, purchases and therefore the tax paid by filing for GST returns with the executive authorities.Read More