Nidhi Company Registration
A Nidhi Company belongs to the non-banking financing companies. Registration of the Nidhi Company allows it to borrow from its members and lend to its members. Nidhi Companies are registered as public..
Important Facts of Nidhi Companies
Benefits of Incorporating Nidhi Companies in India
The followings are the major benefits of the Nidhi Company Registration in India:
- Easy Formation The formation of a Nidhi Company is done through a very simple process. For the formation of Nidhi Company, there are certain requirements such as a minimum of seven members, out of which three will be appointed as directors and an easy and hassle-free documentation process.
- Non-Compliance with Reserve Bank of India A Nidhi Company does not require to comply with any of the Reserve Bank of India guidelines. So, the Nidhi Company is free to inculcate its own rules.
- Less Risk The lending, borrowing or depositing of transactions are done by the members only, decreasing the risk of any financial issues in the Nidhi Company.
- Economical Registration The registration of a Nidhi Company is not heavy on the Director’s pocket as it is very simple than other NBFCs registration process, so it does not affect the Director’s finances. It also helps the Nidhi Company in getting business loans whenever required for the growth of the Company.
- Certainty of savings The concept and objective of a Nidhi Company are to promote the saving among Indian people.
- Net-owned Funding system A Nidhi Company follows the Net owned funding system, which means the transaction where an invest an amount in the business to raise funds for the same. This feature makes a Nidhi Company cost-effective for owners and helps in the growth of the business.
Conditions for Incorporating Nidhi Companies in India
The Governing Authority sets the following Conditions for Incorporating Nidhi Company in India:
Documents for Nidhi Company registration
Following is the List of Documents required for registering a Nidhi Company in India: