Benefits Of Nidhi Company Registration
Nidhi Companies in India is registered with the objective of cultivating the habit of Thrift and Saving amongst its members with Mutual Benefit thereof. By structure, all these companies take the form of a public company registration under the Companies Act. The activities of Nidhi Company is receiving deposits from and lending to its members for their mutual benefit and activities of these companies are limited to their members only. The core compliance planning of the RBI does not apply to them. They are not even required to get any license from the RBI to carry out their operations.
Here is a list of the advantages of the Nidhi Companies in India:
1. Limited RBI Regulations – Owing to the non-dealing of the funds of any person except the members, the regulations imposed by the RBI on the Nidhi Companies is limited. All these companies follow the Nidhi Rules, 2014 issued by the center with respect to the working and activities of the Nidhi Companies.
2. Limited Capital Requirement – Initially, the minimum capital requirement was Rs. 5 lakhs INR for Nidhis decided by the Ministry of Corporate Affairs. It’s only after the Nidhi Rules, 2014 that commissioned that every Nidhi company should ensure Net Owned Funds of ten lakh rupees or more within 1 year of its registration.
3. Ease of formation – Unlike the other NBFC‘s, the Nidhi Companies do not have to get a license from the RBI. All they have to do is incorporate themselves as a public company with the MCA, collect the required amount of money as per the Nidhi rules, 2014 and they are all set to go. The process of Nidhi company registration is the same as registering as a Public Limited Company.
4. Lower rate of credit – The loans given to the members here are at much lower rate of interest than the market rate. This helps you bring much more savings to the members.
5. Helps in channelizing the funds – The goal of these companies is to promote the habit of saving and thrifts amongst the lower and the middle section of the society. These small sections of the population contributes to the funds of and avail the credit from the Nidhi Companies.
6. No outsider interference – 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 Nidhis, neither allowed to deposit money or avail credit from these companies.
Contact Muds Management now to know more about the benefits of Nidhi registration.