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Separate Entity: Nidhi Company is a separate legal entity that can acquire assets and incur debts in its own name.
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Limited Liability: Liability of Directors and shareholders of the Nidhi Company is limited. In case the company suffers from any loss and faces, financial distress in the course of its business activity, the personal assets of any of the Directors or members are not at risk of being seized by banks, creditors, and government.
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Less Regulations: “Nidhi” companies are governed under the Nidhi Rules, 2014. The Central Government is the regulating authority, which controls its activities and operations. Guidelines imposed by the RBI on “Nidhis” are very few.
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Builds Credibility: All the information relating to the companies are made available in a public database. This feature makes it easy to authenticate the existence of the business that ultimately helps in improving business credibility. “Nidhi” companies enjoy better credibility as opposed to any other member-based organizations like Trusts, Cooperative Societies or NGOs.
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Cultivates Savings: The main purpose of a Nidhi Company’s incorporation is to encourage the habit of saving among the members of the Company. This is how it achieves the other goal of its registration of being mutually beneficial. The Nidhi Companies are to “lend and borrow money” to and from its shareholders/members only.
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Cheap Borrowings: Members, when in need, can borrow from the company at bank rates. This can really come handy in case of need and rates are comparatively very cheap in comparison to other sources of finance
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Ease of Fund: Nidhi Company is the safest and the cheapest way of inviting deposits from the general public. You just need to take them as registered members.
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Mutual Benefits: A Nidhi Company operates on principles of mutual benefits. No one member or a group of members get benefited. Nidhi Company allows right to every member to access credit facilities when in need.
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Easy Registration Process: The process to register a “Nidhi Company” with H & G Ebiz is quite simple and transparent. You don’t need to take any license from RBI. You just have to incorporate your company as a public limited one with the MCA.
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No External Involvement: Nidhi Companies take funds from their members and further provides loans to their members only. All transactions are done within this group only. So, no external factors are affecting the working of these companies. The investors/members themselves oversee the operations of the company.
