What is Nidhi Company Registration?
In today’s world, there are many talented and ambitious people with that want to start their very own businesses. However, most of the times these innovative minds do not have enough money to spare on a gamble like a brand new business. I know, if the business becomes a success, there is nothing better than your own company but there is always a chance that it may not work out the way you think it would.
Due to this uncertainty, many people either do not pursue their ideas or take a loan. Even then, finding a trustworthy company or bank to lend you money is again a hard decision. Many companies are out there that would have so many hidden charges that they later put on the price you have to return to them and others add up too much interest from the start. These issues are even harder for the people who do not have enough money to even think about a loan. They cannot bare the cruelty of the loan world with at all.
Now, imagine you are that company that lends money to people in need or helping to facilitate lending money between various company members. How amazing would that be? If you are planning to open a business of your own and you want to help people just like you, creating a Nidhi Company is the best option for you. Plus, it would make you feel good and the business would flourish as well because it would beneficial for your client as well as for you. Allow me to explain further.
Purpose of Nidhi Company
Under the control of the central government, Nidhi Company is a non-banking finance company. It falls under the Act of Companies of 2013, mainly under the section 406. This way your company would be accepted as a proper company by your country and the world.
The sole purpose of a Nidhi Company is to ensure smooth processes of money lending between business people, mainly the top core personnel. To get into more detail, a Nidhi company basically receives money from a party of members as deposits or it lends them the money they require for any justifiable cause. The next main thing to talk about would be what sort of contracts or funds can the company provide? Well, there are bunch of them that a Nidhi Company can provide to its clients.
What Funds Can A Nidhi Company Provide?
While being a non-banking finance company, Nidhi Company can lend money to their clients in the shape of different funds, as per the client’s requirement. Some of the examples are
- Permanent funds.
- Mutual benefit funds.
- Mutual benefit company funds.
All these funds are recognized by the government, which makes them true and legit. Apart from these 3 types of funds, a Nidhi Company can provide many types of funds. You can get the information for them after your company has been established. The most important thing you need to know about any of the funds is that any type of borrowing or lending that would be done by your Nidhi Company, it should be according to the rules of Company Rules of 2014, especially Chapter XXIV.
Now that we have discussed the types of funds that a Nidhi Company can provide, let us tell you about the requirements needed on your behalf to open a Nidhi Company.