Nidhi Company By iSHA Technology

The term ‘Nidhi’ refers to finance or fund. The purpose of incorporation of ‘Nidhi Company’ is to create a tendency of savings and reserve funds among its members. In terms of the Indian financial sector, this company denotes to a mutual benefit society. It receives deposits from members and lend to the members-only for their mutual benefit.

Most Nidhi Companies are found in South India. Tamil Nadu possesses 80% of the total number of Nidhi companies in India. The company only deals with its members and is named as mutual benefit society. The members of company are only the source of funds. The loan rates of Nidhi Company are lower than other banks of India.

The registration in Nidhi Company is economical and easier. The company requires a minimum of three directors, seven shareholders and minimum capital of Rs.10 lakh. There should be net owned funds of minimum Rs.10 lakh. The ‘Nidhi Company’ should possess ratio of 1:2 of Net owned Funds to deposits.

Nidhi Company has lot of benefits to offer for its members like low rates of interest, secured investments, best for lower and middle classes, no external involvement in Management and minimum complications in Documentation and formalities. iSHA Technology Solutions Pvt. Ltd. helps in Nidhi company registration for its clients.