INTRODUCTION Nidhi companies are incorporated to develop the habit of savings among its members. It comes under non -the banking financial industry, NIDHI company is a type of company whose core business is borrowing and lending among its members, regulated by the ministry of corporate affairs and recognized under section 406 of companies act 2013. There is no need for any registration with RBI but RBI has the power to issue guidelines as far as deposit and acceptance activities are concerned. There is NIDHI software to help in managing all different activities of the NIDHI Company, Best NIDHI Software in India is provided by SKILLTEASER technologies ltd., they are very well known for their services as well as for making the best NIDHI software in INDIA.

ADVANTAGES OF NIDHI COMPANY There are certain advantages of NIDHI company, advantages in terms of establishing it, operational as well to its members, let's look at various benefits or advantages of NIDHI company.

EASY FORMATION: The formation of the Nidhi Company is a really easy process, all one needs are seven members out of the three would be directors. As far as registration is concerned it takes hardly five to ten days to get a NIDHI company registered also there is no license required from the RBI and the documents required are very few.

LESS CAPITAL REQUIRED: Minimum capital required for NIDHI company is very less than compared to other finance companies, only five lac rupees are required as minimum capital to establish NIDHI company. Also after registration, if there is any investment opportunity even that is very much allowed.

LIMITED REGULATIONS: Although no license is required from the RBI it comes under the ministry of corporate affairs which can ask the RBI to issue guidelines in terms of the activities of NIDHI Companies. But overall regulations are very limited which makes the functioning a little more easy and smooth.

NO OUTSIDE INTERVENTIONS: as NIDHI companies operate strictly among their members only, there is any outside intervention in the company. Directors of the company are also members only.

BENEFITS TO ITS MEMBERS: First and foremost it develops the habit of savings among its members and they are motivated to do so, this is beneficial for them only. Then loans which are provided to the members are given at lower than the market rate, also the process of donation as well as taking a loan is quite easy in the NIDHI companies. Also, it is considered to be quite a safe investment and the risk of non-payment of loan is quite less than compared to other finance companies.

EXEMPTIONS AND PRIVILEGES: Although it is recognized under the companies act still it is exempted from many of its provisions. The lesser the provisions easier the working of the company.

These were some of the advantages of a NIDHI Company hope you liked reading this blog.