Advantages of Nidhi Company

According to the section 406 of the Companies Act of 2013, Nidhi Company is the non-banking financial institute that is established with the objective to develop the habit of saving amongst its members. Nidhi Companies accept deposit and provide loan among its members only. Nidhi companies work according to the guidelines of Reserve Bank of India. Although, they can perform their operation without any imperative condition of getting any license from RBI. Seven members can commence Nidhi company, and within one year the company must ensure that it has not less than 200 members.   

There are several advantages of Nidhi company in India, it not only the first choice of small financers, but also people of India consider it the safest option to start a finance business in the country. Through this blog, we will discuss about the advantages of Nidhi Company.    

Easy to establish:

Nidhi company registration in India is simple and hassle-free. There is requirement of seven persons, easy document work, and simple registration process. Within 10-15 days, your Nidhi company will start functioning in the market.  

Affordable registration fee:

There is only Rs. 5,000,00 capital needed for the registration of Nidhi Company, and one can invest the capital within the two months, after paying the registration fees of Rs. 19,999/- only.

No strict compliance:

There is no strict compliance for Nidhi companies from RBI. RBI doesn’t impose stringent directives on Nidhi companies, therefore if you are starting a Nidhi company in India, you don’t need to be in rush-n- hush.

Low level of risk:

Nidhi companies accept deposit and provide loans to its member, according to the Nidhi Rules, 2014. Nidi companies are the safest place for borrowing loans at less interest rate, compare to other financial institutions.  

More Certainty in Nidhi company:

Nidhi Company encourages saving among its member, which means people who will associate with Nidhi company in future, they will keep investing their money in the company which mean there will more stability and certainty in the company.   

Global Jurix

S-191 C, 3rd floor, Manak Complex

School Block, Shakarpur

New Delhi - 110092, India,

Website:www(dot)globaljurix(dot)com

Call at: +91-9810-062-387

Mail at: corporate(at)globaljurix(dot)com