Liability of Members and Directors of the Nidhi Company is limited. It means that if the company suffers from any loss and faces financial distress because of primary business activity, the personal assets of Members / Directors will not be at risk of being seized by banks, creditors, and government.
A Nidhi company enjoys better credibility when compared to any other members based Organizations like trust, cooperative society or any other form of NGO. Nidhi companies are registered and monitored by the Ministry of corporate affairs.
A director of a Nidhi company can be easily added or removed by filing simple forms with the Registrar of Companies. The Board of Management of a Nidhi company controls the activities of the Nidhi Company.

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A Nidhi Company is one that belongs to the NBFC (Non-Banking financial sector) and is recognized under section 406 of the Companies Act, 2013. Their core business activity is borrowing and lending money only to its members.

Nidhi Company can freely accept deposits from members and give money to its member. The fund, which received from members and can only be utilized by its members. RBI is empowered to issue directions to them in matters relating to deposits from members. Nidhi Company cannot accept deposits from other than its member.

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Nidhi Company Registration Process

Propose directors of the Nidhi Company should have a digital signature and digital signature will use to file the registration, ROC compliance forms, and Tax returns.
DIN is mandatory to form a company, when a Digital signature is approved, and you will get an approval email from the Registrar of companies that you are now eligible to be a director of a company.
After Name approval from the Registrar of Companies, we will file a final incorporation form with all supporting documents like registering address proof, Declaration from directors.

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