A Nidhi Company is one of the categories of Non-Banking Financial Company (NBFC) that does not require license from Reserve Bank of India (RBI) to commence its operations. Nidhi Company is managed under the supervision of Ministry of Corporate Affairs (MCA) as per Section 406 of the Companies Act, 2013.
The primary business objective of Nidhi Company is borrowing and lending money amongst its members.Like any other form of entity, Nidhi Company is also required to file multiple compliances which are prescribed as per Section 406 of the Companies Act, 2013 and Nidhi Companies Rules, 2014.
