{"id":52503,"date":"2023-02-15T18:13:48","date_gmt":"2023-02-15T12:43:48","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=52503"},"modified":"2023-02-15T18:13:50","modified_gmt":"2023-02-15T12:43:50","slug":"difference-between-nidhi-company-and-co-operative-society","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/difference-between-nidhi-company-and-co-operative-society\/","title":{"rendered":"Difference between Nidhi Company and Co-Operative Society"},"content":{"rendered":"\n<p>A\nNidhi company is a non-banking finance corporation that offers financial\nservices to its members. At the same time, a Co-operative Society is a mutual\naid organization owned and controlled by its members for their mutual benefit.\nBoth of these organizations provide their members with access to loans,\nsavings, and other financial services. However, there are a few differences\nbetween them. There are several options available when it comes to investing\nmoney or looking for financial services, including Nidhi Company and\nCo-operative Society.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/difference-between-nidhi-company-and-co-operative-society\/#What_Do_You_Mean_By_A_Company\" >What Do You Mean By A Company?&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/difference-between-nidhi-company-and-co-operative-society\/#What_is_Nidhi_Company_and_Co-operative_Society\" >What is Nidhi Company and\nCo-operative Society?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/difference-between-nidhi-company-and-co-operative-society\/#Difference_between_Nidhi_Company_and_Co-operative_Society\" >Difference between Nidhi Company and Co-operative Society<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/difference-between-nidhi-company-and-co-operative-society\/#Conclusion\" >Conclusion&nbsp;<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Do_You_Mean_By_A_Company\"><\/span><strong>What <\/strong><strong>Do You Mean By A <\/strong><strong>Company<\/strong><strong>?&nbsp;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A\nCompany is a business organization created and registered in accordance with\nthe laws of particular countries. The corporation is a different legal entity\nfrom its owners; it has legal standing to engage in agreements, bring legal\nactions and be sued, as well as to own property. Companies are employed as a\nmeans of carrying on business, making money and offering clients products or\nservices. A board of directors is responsible for managing a corporation; they\nare chosen by the shareholders. The board of directors is in charge of managing\nthe business operations and taking crucial decisions, including developing the\ncorporate strategy, making investments, and selecting executives.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_Nidhi_Company_and_Co-operative_Society\"><\/span><strong>What is Nidhi Company and\nCo-operative Society?<\/strong><strong><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>You\ncan check the meaning of Nidhi Company and C0-operative Society below:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Meaning of Nidhi Company<\/strong><strong><\/strong><\/h3>\n\n\n\n<p>The\n<strong><a class=\"text-primary\" href=\"https:\/\/corpbiz.io\/nidhi-company-registration\">Nidhi Company<\/a><\/strong>\nis a type of non-banking financial company that operates in India. It is\nspecifically made to meet the financial needs of those who belong to a defined\ncommunity, such as those who live in a particular region (geographical area) or\na group of people with similar interests. A Nidhi Company is required to\nregister with the Companies Act of 2013 and receive a certificate of company\ncommencement. This certificate stands as a testament to the company\u2019s\nlegitimacy and its right to conduct business as a financial institution.<\/p>\n\n\n\n<ul><li><strong>Key\nFeatures of Nidhi Company<\/strong><ul><li>A\nNidhi Company must always be a Public Company, having the minimum paid-up\nequity capital of Rs. Five Lakh.&nbsp;<\/li><li>The\nmembership-based structure is one of the distinctive features of a Nidhi\nCompany. To be eligible for loans and other financial services from the\ncompany, members must own shares in the company.&nbsp;<\/li><li>The\nNidhi Company must have minimum of seven members and minimum three directors.<\/li><li>A\nNidhi Company has to add \u201cNidhi Limited\u201d as the last word in the name of the\ncompany.<\/li><li>The\nNet owned Funds of a Nidhi Company should be Rs. Ten Lakh or more, this\nprotects the members and guarantees that the company has enough resources to\ncarry out its duties.<\/li><li>A\nNidhi Company\u2019s principal operational activities include taking deposits from\nand lending money to its members.<\/li><li>A\nNidhi Company is prohibited from issuing preference shares or debentures, or\nany other debt instruments.<\/li><li>A\nNidhi company cannot, for borrowing or lending, enter into any partnership\nagreement.<\/li><\/ul><\/li><\/ul>\n\n\n\n<ul><li><strong>Nidhi\nCompany That Are Registered In India<\/strong><\/li><\/ul>\n\n\n\n<p>Below\nmentioned are some of examples of Nidhi companies registered in India:<\/p>\n\n\n\n<ol><li>Alandur\nPraja Sahya Saswatha Nidhi Limited<\/li><li>Sriman\nMadhwa Sidhantaonnahini Permanent Nidhi Limited<\/li><li>Paraspara\nSahaya Nidhi (Perambur) Ltd<\/li><li>Shenoy\nNagar Saswatha Nidhi Ltd<\/li><li>Jeya\nBharath Benefit Fund Limited<\/li><li>Canara\nNidhi Limited<\/li><li>Mini\nMuthoottu Nidhi Kerala Limited<\/li><li>Varthaka Mandal Nidhi Ltd<strong><\/strong><\/li><\/ol>\n\n\n\n<h3 class=\"wp-block-heading\">Meaning of Co-Operative Society<\/h3>\n\n\n\n<p>A\nco-operative Society is a type of organization that functions on the principle\nof collective ownership and control. It is designed to meet the economic and\nsocial needs of its members. Co-operative societies are profit-driven\norganizations that seek to increase the marketability of the goods produced by\nlabour-intensive industries like agriculture. The formation of Co-operative\nsocieties is done with the aim of protecting the interest of the weaker\nsections of society.&nbsp;<\/p>\n\n\n\n<p>Based\non the recommendation of the Mirdha committee and the Model Co-operative\nSocieties Act, the Government of India passed <strong>the Multi-State Co-Operative Act in 2002<\/strong><sup><a class=\"text-primary\" href=\"https:\/\/www.indiacode.nic.in\/bitstream\/123456789\/1914\/1\/A2002-39.pdf\"><strong>[1]<\/strong><\/a><\/sup>,\nensuring the democratic and independent function of co-operatives.<\/p>\n\n\n\n<ul><li><strong>Key\nFeatures of Co-Operative Society<\/strong><ul><li>The\nformation of co-operative societies is totally voluntary in nature. The\nmembership is open to everyone.<\/li><li>A\nco-operative society must be registered under Multi State Co-Operative Act in\n2002.<\/li><li>The\nco-operative society has to maintain accounts for a independent auditor to\naudit.<\/li><li>The\nstate government controls and supervises the co-operative society<\/li><li>In\nco-operative societies, there is limited liability.<\/li><li>The\nvoting rights are given to all members. The managing committee is elected.<\/li><li>The\nprinciple of mutual help &amp; welfare is present.<\/li><li>When\nmembers enter or exit the co-operative societies, it does not affect the\nco-operative society.<\/li><li>The\nmembers of the co-operative society can get quick loans.<\/li><li>Exempted\nfrom the Income Tax up to a certain earning.<\/li><\/ul><\/li><\/ul>\n\n\n\n<p><strong>Examples of Cooperative Society<\/strong><\/p>\n\n\n\n<ol><li>National\nCo-operative Land Development Banks Federation Limited,<\/li><li>National\nFederation of State Co-operative Banks Limited,<\/li><li>National\nCo-operative Union of India Limited<\/li><li>National\nAgricultural Co-operative Marketing Federation of India Limited<\/li><li>National\nCo-operative Consumer\u2019s Federation of India Limited<\/li><li>National\nFederation of Co-operative Sugar Factories Limited<\/li><li>National\nFederation of Industrial Co-operative Limited<\/li><li>National\nCo-operative Housing Federation Limited<\/li><li>Indian\nFarmer\u2019s Fertiliser Co-operative Limited<\/li><li>All\nIndia Federation of Co-operative Spinning Mills Limited<\/li><li>All\nIndia Industrial Co-operative Banks Federation Limited<\/li><li>National\nCo-operative Dairy Federation of India Limited<\/li><li>National\nHeavy Engineering Co-operative Limited<\/li><li>All\nIndia Handloom Fabrics Marketing Co-operative Society Limited<\/li><li>National\nFederation of Urban Co-operative Banks and Credit Societies Limited<\/li><li>Krishak\nBharati Co-operative Limited, New Delhi<\/li><li>National\nFederation of Fishermen\u2019s Co-operative Limited<\/li><li>National\nFederation of Labour Co-operative Limited<\/li><li>National\nCo-operative Tobacco Grower\u2019s Federation Limited<\/li><li>Tribal\nCo-operative Marketing Development Federation of India Limited<\/li><li>*Petrofils\nCo-operative Limited, Vadodara, Gujarat: Under Liquidation<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Difference_between_Nidhi_Company_and_Co-operative_Society\"><\/span>Difference between Nidhi Company and Co-operative Society<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Following is the difference between Nidhi\nCompany and Co-operative Society:<\/p>\n\n\n\n<ul><li>One of the main differences\nbetween the Nidhi Company and Co-operative Society is their legal status. The\nNidhi Company is registered as a limited company under the Companies Act 2013.\nWhile the Co-operative Society is registered under the Co-operative Societies\nAct 2002.<\/li><li>In the Nidhi Company,\nthere is a board of Directors that are appointed for the management and\ncontrol, while in Co-operative society, a committed is elected by the members\nthat manage and control the Co-operative Society.<\/li><li>The reputation and\nperceived trustworthiness of Nidhi Company and Co-operative Society may differ.\nThe Nidhi Company may be seen as more professional and stable, while a&nbsp;Co-operative\nsociety may be seen as more community-oriented and friendly.<\/li><li>A Nidhi Company is\nsubject to regulations by the Ministry of Corporate Affairs. On the other hand,\na Co-operative Society is regulated by the State Government and appointed\nRegistrar of Co-operative Societies.<\/li><li>A Nidhi Companies&#8217; main\nobjective is to provide financial services to its members. The Co-operative\nSociety aims to promote the economic and social well-being of its members.<\/li><li>A Nidhi company operated\nwithin the geographical boundaries of India. The Co-operative Society have a\nwider area of operation, including international operations.<\/li><li>A Nidhi Company is\nrequired to submit financial statements and reports on a regular basis to the\nMinistry of Corporate Affairs, while Co-operative societies are not subject to\nsuch requirements.&nbsp;<\/li><li>A Nidhi company has some\nspecific membership criteria that should be fulfilled. There should be<strong>200 members within one year from the date of\nincorporation of a Nidhi company<\/strong><strong>.<\/strong> A Nidhi Company cannot\nmake a trust or a body corporate its member. The co-operative society does not\nhave any membership criteria. It is open to all.&nbsp;&nbsp;<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion&nbsp;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Both the Nidhi Company and Co-operative Society play a crucial role in providing financial services to individuals and communities. However, they differ in terms of membership criteria, services offered, regulation and ownership structure. While Nidhi companies are non-banking finance companies that cater specifically to their members, Co-operative Societies are mutual benefit organizations that are owned and controlled by their members for their mutual benefit and welfare. It is essential to understand differences between Nidhi Company and Co-operative Society.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read Our Article<\/b>: <mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/incorporation-procedure-nidhi-company-india\/\">What Is Nidhi Company? Know It\u2019s Registration Procedure<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A Nidhi company is a non-banking finance corporation that offers financial services to its members. At the same time, a Co-operative Society is a mutual aid organization owned and controlled by its members for their mutual benefit. Both of these organizations provide their members with access to loans, savings, and other financial services. However, there [&hellip;]<\/p>\n","protected":false},"author":49,"featured_media":52504,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[31],"tags":[3094],"acf":{"service_id":"9"},"authorName":"Shreya Patel","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2023\/01\/MicrosoftTeams-image-41.jpg","authorDescription":"I have completed B.A.LL.B (Hons) from The Maharaja Sayajirao University, Baroda. I have also done a Diploma in Cyber Law and currently pursuing a post graduation diploma in IPR from GNLU.I am an avid researcher. My interest areas are Labour Law, Cyber law and Intellectual Property rights law.","postViews":7633,"readingTime":5,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/52503"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/49"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=52503"}],"version-history":[{"count":2,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/52503\/revisions"}],"predecessor-version":[{"id":52506,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/52503\/revisions\/52506"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/52504"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=52503"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=52503"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=52503"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}