Nidhi Company Nidhi Company is a company that belongs to the non-banking financial sector. The core business of Nidhi Company is to borrowing and lending money between their members. Nidhi Company is incorporated with the object of growing the habit of thrift and reserve funds amongst its members. In this blog, we will discuss the meaning of Nidhi Company, its registration, advantages, and other vital aspects. What is Nidhi Company all about? Nidhi Company is a non-banking financial business structure. Nidhi Company performs the functions of lending and borrowing of money within its members. Nidhi Company works through its members only. Nidhi Company is also called as a mutual benefit company. Nidhi Company promotes the art of saving and utilization of funds within its member community. Nidhi Company does not require a license of Reserve Bank of India. Companies doing Nidhi Business are also known as Nidhi, permanent fund, benefit funds, Mutual Benefit Funds, and Mutual
The new company act has created an - entirely new business structure - OPC (One Person Company) An OPC has only one member and can be fully functional with a minimum of one director. An OPC will essentially have the characteristic of a Private Limited Company , but with lesser compliances requirements. Although the OPC model is a new concept in India, it has been working successfully in developed nation since a long time. Traditionally any for profit business from other than a sole proprietorship requires more than one members. Similarly, a private company also requires more than at least two members. In such addition, how did single addition single fonder or promoters start a company in India . There is a simple workaround which was used by founders/promoters – the company would typically issue one share to a relative of the promoter (for example their father, mother spouse etc). So, that the minimum requirement of two person was satisfied. Having additional sharehol