Legal & Compliance
Starting a Nidhi Company
in India
N idhi Companies is regulated by Sec
on 406 of Companies Act 2013 and Companies
(Nidhi Companies) Rules, 2014
MEANING:
Nidhi Company means a company which has been incorporated as a public company with the object
of-Cul va ng the habit of thri and savings amongst its members and receiving deposits from, and
lending to, its members only, for their mutual benefit.
OBJECT TO INCORPORATE NIDHI COMPANY:
Nidhi Company is incorporated with following objec ves:
To s mulate savings among its member
To lend Loans and receive money as deposits for the purpose from only its members.
Since Nidhis come under NBFCs, the RBI is empowered to issue direc ons to them in ma ers
rela ng to their deposit acceptance ac vi es. However, since Nidhis deal with their shareholder-
members only, RBI has exempted such no fied firms from the provisions of the RBI Act and other
direc ons applicable to NBFCs.
www.Venture-Care.com/Magazine
October 2017
8