The literal meaning of Nidhi is ‘Treasure’ and in the financial market, however, Nidhi Company means a company which tries to cultivate the habit of saving by accepting deposits and providing loans amongst its members.
Hence, the nature of the company is exactly the same as it sense and starting a Nidhi company is undoubtedly will be a good way out for you to start a financing company.
In this write- up we will discuss the benefit of starting a Nidhi company in India –
Very Easy formation
Requires only 7 persons where 3 will be appointed as Director.
Less documentation to do.
Simple Registration process.
Hardly take 10 to 15 days to get it register.
Nidhi company registration is very simple and the level of complexity as compared to other types of finance companies like NBFC is minimal in Nidhi Company.
Cost Efficient Registration
Registering Nidhi Company comes with the pocket-friendly cost. The minimum capital requirement for registration of Nidhi Company is Rs 5,00, 000 lakh which you can invest within 2 months after getting your Nidhi Company registered.
For registration of Nidhi Limited, you can reach atwww.hubco.in where you will find an economical price for Nidhi registration and get the registration of Nidhi company in a very cheaper price.
No RBI Regulations – less compliance.
Nidhi Company by its nature of activity comes under the category of NBFC but does not require RBI approval. These companies follow Nidhi Rules, 2014 issued in respect of the activity and working of the company. RBI has exempted Nidhi Company from following stringent compliances so you don’t need to be in rush-n- hush as RBI will not bother if you starting a Nidhi Company in India.
More Certainty in Nidhi company
In India, everyone likes to do the savings for six years old child to sixty years old man. And, the main objective of Nidhi company is to promote the habit of saving amongst its member which means it is certain and going concern business as the members will not stop savings anytime.
Less level of Risk - Non- payment loans
It is very clear that Nidhi Company can accept deposit and provide loans to its members only according to the Nidhi Rules, 2014 which means the risk of non- repayment of loans is less as compared to other finance business. It is the safest route for lending loan and the loans given to members are at very low rates in comparisons with other providers which again bring greater savings amongst members.
Net owned fund- Invest one get twenty
Net owned fund means the amount of capital invested by owner in its business for raising funds. The net owned fund ratio of Nidhi Company is 1:20, which means you invest one rupee and raise the deposit of twenty rupees.
After registration people get worried about how the will manage their Nidhi Company, now there is no need to worry about that as Hubco provides user-friendly Nidhi Software at a reasonable price which is exclusively built for starting and managing Nidhi Companies in India.
We have made this software, purely as per Nidhi Rules, and Companies act. So, if you do any non-compliance to Nidhi Rules, then the software will automatically notify you and correct you wherever needed.
At the end just want to conclude that if you are planning to register Nidhi Company then just stay calm and give us an opportunity to help you out in your registration process as well as compliances after incorporation. Reach us at www.hubco.in