NIDHI COMPANY REGISTRATION
It is a company classified as an NBFC (a Non-banking financing company) and registered under Section 406 of Companies Act, 2013. The main business of such a company is to facilitate lending money between the core members of the company. This way members (or shareholders) are encouraged to save money and invest them within the company. These deposits are then used by the company for its members (or shareholders), to provide loans or advances, and to acquire government-issued stocks/bonds/debentures/ securities. It is regulated by the Ministry of Corporate Affairs, while the RBI monitors all its financial dealings. It's ideal for those businesses looking to start a permanent and a mutual benefit fund, or a mutual benefit company.