“Nidhi” means finance or fund. Nidhi means a company which has been incorporated with the object of developing the habit of thrift and reserve funds amongst its members and also receiving deposits and lending to its members only for their mutual benefit. Nidhi company registration requires minimum 3 members. Nidhi company’s incorporated shall have the last word as “Nidhi Limited” as part of its name. Nidhi Company is easy and economical to register. It might not issue preference share. If preference shares have already been issued by a Nidhi Company before initiation of this Act, such preference shares are to be redeemed in accordance with the terms of issue of such shares. Belonging to the classification of non-banking business firms and identified below Section 406 of the Companies Act, 2013, it is regulated by the central government. Examples of a Nidhi Company are permanent funds, mutual benefit funds, a mutual benefit company and benefit funds. All lending and acquiring must agree with the decree stated in chapter XXIV of Company Rules, 2014.