Nidhi Company

Nowadays, Nidhi Company has evolved as a popular lending mechanism for obtaining secured loans. These companies are most predominant in the Southern Parts of India. Moreover, the operations and the affairs of this company are similar to that of a Co-operative Society. Further, section 406 of the Companies Act, 2013, deals with the process of Nidhi Company Registration.Furthermore, the prime reason behind incorporating this business structure is to encourage and motivate its members to save so that they can smoothly and with ease satisfy their financial needs arising from time to time. Hence, this company is based on the principle of Mutual Benefits.