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
Separate Legal Entity:
A Nidhi company is that the best entity and a jurally person established beneath the Act. Therefore, a Nidhi company has giant legal capability and might own property and conjointly incur debts. The users (Directors) of a Nidhi company have zero liability to the creditors of a Nidhi company.
A Nidhi company has ‘perpetual succession’, that’s extended or uninterrupted existence till it’s lawfully mixed. A Nidhi company, being a separate legal person, is unaffected by the death or alternative effort of any member however continues to be breathing in spite of the changes in membership.
A Nidhi company enjoys higher credibleness compared to Mutual profit Organizations. Nidhi Corporation’s area unit registered and monitored by the Central Government.
The Board of Management of the Nidhi Company will simply be modified by process straightforward forms with the Registrar of corporations. The Board of Management of a Nidhi company handles the activities of the Nidhi Company.
A Nidhi company being a aurally person, will acquire, own, relish and provides up, property in its own name. No member will create any claim when the property of the Nidhi company on condition that it’s a going matter.
Limited Liability suggests that the standing of being lawfully accountable solely to a restricted quantity for liabilities of the Nidhi company. in a very Nidhi Company, the members don’t seem to be command in person accountable for the liabilities of the Nidhi company.