Whether Nidhi Company can be converted into a full fledge NBFC? The answer is no. Nidhi Company cannot be converted into a Non-Banking Financial Company, because it is neither feasible nor legally tenable.
Company incorporated on or before the 31st December, 2017 are mandated to file the particulars of the company and its registered office in E-Form INC-22A (Active Company Tagging Identities and Verification).
Nidhi company registration is one of the kinds of NBFC which do not require the Reserve Bank of India (RBI) approval. Further, it is described as the cheapest form of NBFC which can be formed by any person in India.
Nidhi Companies are not allowed to do a Micro Finance business in India. Micro Finance credit is a type of business which has been specifically assigned to Non Banking Financial Companies (NBFC) with a minimum net owned fund of Rs.5 crore.
Everybody thinks that Registration of company in India is a very tiring and time taking process and requires lots of money to invest. But with the new interventions from the new government the process of registration becomes easier day by day and new step
Vehicle Finance Company in India is company which finances the physical assets like automobiles, cars etc. In India, no company can do the business of vehicle finance without the prior registration with the Reserve Bank of India (RBI).