A Company is the most acknowledged and accepted form of Business Structure worldwide. Not only it attracts investors but also encourages the entrepreneurs to represent their business in a form which is common and familiar to all. Further, it provides other benefits too such as that of having a perpetual succession and limited liability. Since a company has a separate legal identity from that of its promoters, it is capable of holding funds and properties and to sue and be sued in its own name. It is also eligible to borrow funds in different forms such as loans, debentures, etc.
A Nidhi company is a Non-Banking Financial Company (NBFC) incorporated with the object of cultivating the habit of thrift and savings amongst its members, receiving deposits from and lending to, its members only, for their mutual benefit. Like every other NBFC, Nidhi companies also comes under the purview of Reserve Bank of India, however, considering the fact that these companies deals only with their shareholders, they have been exempted from the core rules generally applicable to other NBFCs.
Also, within a period of one year of its incorporation:
20 to 30 working days subject to ROC processing time