A Nidhi company belongs to the category of non-banking finance firms recognized under Section 406of the Companies Act, 2013; it is governed by the Central Government. The basic concept of such a company is to facilitate lending money between the core members of the company. Examples of a Nidhi Company are permanent funds, mutual benefit funds, and a mutual benefit company and benefit funds.

Here Filing Bazaar team will guide and help out in Registering a Nidhi Company.

 The advantages of Registering a Nidhi Company in India:

·        Owing to their non-dealing with the funds of any person other than their members, the regulations imposed upon the Nidhi by RBI is limited. These companies follow the Nidhi Rules, 2014 issued by the center with respect to the activities and workings of Nidhi Companies.

·        The Ministry of Corporate Affairs has done away with the minimum capital requirement of INR 5 Lakh for Nidhi.

·        Unlike other NBFCs, Nidhi don’t have to obtain a license from RBI. They just have to incorporate themselves as a public company with the MCA, as per Nidhi Rules, 2014.

·        The main aim of such companies is to promote the habit of saving and thrifts among a lower and middle section of the society.

·        The loans given to the members are at a lower rate of interest than the market rate. This brings greater savings to the members.

·        The Nidhi companies are formed by, managed by, and provide benefits to their members only. The outsider is not allowed to intervene in the working of the Nidhi, neither allowed to deposit money or avail credit from these companies.

Disadvantages of Nidhi Companies

Since the Nidhi Companies accept deposits from their members only, the funds raised are limited.

·        When the funds raised are limited, the availability of credit is also restricted. This defeats the whole purpose for which the Nidhi Companies are established.

·        Although there are no strict compliances imposed upon the Nidhi by RBI, still their activities are governed by the Reserve Bank especially their deposit acceptance operations.

·        The central government issues rules and directions governing Nidhi Companies from time to time. Therefore, they are not totally exempt from the regulatory framework.

So we all know that in world everything is not perfect fully. So Here Filing Bazaar team will guide you for Nidhi Company Registration in India.

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