Nidhi Company are companies that are registered under Section 406 of the companies Act,2013.The primary function of these companies is to enable borrowing and lending money between their members. These are also known as Permanent Fund, Benefit Funds, Mutual Benefit Funds and Mutual Benefit Company.
Advantages of Nidhi company:
- Cost efficient registration-Pocket friendly cost
- Very Easy formation-Easy & less complexity
- No RBI Regulations – less compliance
- More Certainty in Nidhi company-Promote habit of Savings
- Less level of Risk – non- payment loans
- Net owned fund- Invest one get twenty