Nidhi Registration in Kolkata

Sujata Associates

4 Fairlie Place, HMP house, Kolkata West Bengal, India

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A corporation is referred to as a "Nidhi company" if it only manages "deposits from and loans to" its members (shareholders) and acts in their best interests. As a result, "Nidhi Company" has been granted some exemptions with regard to annual compliance and tax assessment. Section 406 of the revised "Companies Act, 2013," the Companies (Nidhi Companies) Rules of 2014, and Chapter XXVI of the Companies Rules, 2014, govern the formation, administration, and control of Nidhi Companies in India. A Nidhi Company's incorporation is intended to promote savings among its participants. Only Nidhi firms are permitted to accept deposits from and lend money to their members. In the end, the assets that are added to a Nidhi firm come specifically from its members and are to be used exclusively by the Nidhi Company's investors. The word "Nidhi" in Nidhi Company means "treasure" and has Hindi linguistic roots. A particular type of NBFC is the Nidhi Company. Despite not being directly controlled by the RBI, it nonetheless has the authority to provide them with instructions regarding their deposit acceptance activities. Additionally, these "Nidhi firms" are excluded from the essential requirements because they solely transact business with their members (shareholders). Nidhi Company Registration All the provisions pertaining to the formation and management of a Nidhi Company in India are covered under Section 406 of the "Companies Act, 2013" and the Companies (Nidhi Companies) Rules of 2014. The RBI also provides guidelines and norms for the Nidhi companies. These are mostly connected to financial operations and investments made by businesses, especially NBFCs. Loans made through the Nidhi Company have very reasonable interest rates. The advances are, in a sense, made against security. When compared to deposits in the organised banking industry, Nidhi deposits do not yield as much interest. The Nidhi Companies' only lenders and only borrowers are its members. As a result, these organisations also make reference to mutual benefit societies.