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Glossary / Also known as

Section 406 company

Another name for Nidhi Company.

Other names
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What does section 406 company mean?

Section 406 company is another name for Nidhi Company. A type of non-banking financial company that borrows and lends money exclusively among its members, regulated under the Nidhi Rules.

The two names mean the same thing. You will see "section 406 company" in some ledgers, reports and contracts and "Nidhi Company" in others. The full entry covers how it works, with examples.

Read the full definition of Nidhi Company

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From the glossary

Related terms.

Company law and governance Nidhi Company A type of non-banking financial company that borrows and lends money exclusively among its members, regulated under the Nidhi Rules. Also called mutual benefit society, section 406 company Company law and governance Companies Act, 2013 The primary legislation governing the incorporation, management, and dissolution of companies in India. Also called Companies Act 2013, the Companies Act Statutory compliance Annual Compliance Yearly regulatory filings and statutory obligations that companies must complete to remain in good standing. Also called annual compliances, yearly compliance Company law and governance One Person Company (OPC) A company with a single member, providing corporate status and limited liability to an individual entrepreneur under the Companies Act, 2013. Also called single-member company Vendor onboarding KYC (Know Your Customer) The mandatory identity verification process used by financial institutions and businesses to confirm client identities and prevent fraud. Also called know your customer checks, KYC verification, customer due diligence Company law and governance Annual General Meeting (AGM) An Annual General Meeting (AGM) is a mandatory yearly meeting of a company's shareholders required under Section 96 of the Companies Act, 2013 to transact ordinary business. Also called annual shareholders meeting
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