Nidhi Company Analysis:

No business apart from Nidhi business:

A Nidhi company cannot carry a business as a result of Nidhi company carries a predefined business and thus not allowed to hold on business as the other sort

No preference share capital:

An Old North State cannot raise funds by ways that of preference share capital since Nidhi Company is allowed to require deposits from the general public, it’s been restricted to lift funds from the other supply

No current a/c

An Old North State has been restricted to open the present account with members. Nidhi Company isn’t treated as industrial company rather it’s a mutual profit company

Deals solely with members

An Old North State cannot agitate a person apart from its members. in alternative words, a Nidhi company will solely take cash or lend cash to its members solely

No branch outside state

An Old North State cannot open a branch outside the state in Bharat in line with rules

No branch before 3 years

An Old North State cannot open a branch in Bharat until it earned profit endlessly in 3 preceding years. This is often necessary

No charge on membership

An Old North State cannot charge a charge on a problem on shares from the members. However, a Nidhi company will charge process fees on loans because the same has not been restricted by Nidhi rules