Special entities(MSME/SSI)

What is Udyam Registration?

Udyam Registration in India or MSME Registration or SSI registration is a certificate that is provided to micro, small, and medium-sized businesses in India under the MSME Act, 2006. Udyam registration in India was earlier known as MSME registration. The primary objectives of the Micro, Small and Medium enterprises concerning the Udyam registration is as follows:

• To enable the Micro, Small and Medium enterprises on a large scale to effectively tackle the widespread problems of unemployment and poverty;
• To extend the benefits of various government schemes at one stop to the SSI units;
• To safeguard the SSI from financial harassment in the hands of the big industries.

What is Nidhi Company and how it works?

Nidhi Companies belong to the Non-banking financial companies structure.

Registering a Nidhi Company allows a Nidhi to borrow from its members and lend to the members.

Nidhi Companies are registered in India are created to cultivate the habit of thrift and savings among its members. The funds that are contributed to a Nidhi Company are only from its members.

For Incorporating a Nidhi Company, no license is required from the Reserve Bank of India. Hence, the formation of the Nidhi Company is easy. Nidhi Companies are registered as Public Companies and should have Nidhi Limited at the last of the name.

It should also be noted that the Nidhi Companies fall under the purview of the Reserve Bank of India as the functioning of Nidhi Companies is similar to NBFCs.