Nidhi Company is one of the categories of NBFC or in other words, it is the cheapest and easiest form of NBFC as well. Also, it is very easy form to register and does not require much capital.
Anybody can register a Nidhi Company with only 5 lakh minimum capital and with minimum of seven members.
Through, there are various restrictions as well, but we look at its cost involved, we can say it is a small and legal ways to start the finance business in India.
When you business grew a lot in this, then you can anytime graduate to a full fledge Non Banking Financial Company.
Before we explain the process of registration, you must understand the basic of Nidhi Company:
1. Nidhi Company is also called a Mutual Benefit company. It promotes the art of saving and utilization of funds within its member community.
2. Nidhi Company cannot deal with anybody other than its members. You will have to understand the process of making a making in a Nidhi.
3. The minimum capital requirement for Nidhi Company is five lacs with at least seven members needed to incorporate a company.
4. Anybody can register a Nidhi Company; there is no background check, nor there did any prescribe qualification for its owners.