prpri Benefits of registering Nidhi Company in India Benefits of registering Nidhi Company in India
Aruna Bhayana

The literal meaning of Nidhi is ‘Treasure’ and in 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.

Nidhi Company

In this write- up will discuss the benefit of starting a Nidhi company in India –

1. Very Easy formation

  • Requires only 7 persons where 3 will be appointed as Director
  • Few documentation to do
  • Simple Registration process
  • Hardly take 10 to 15 days to get registered

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.

2. Cost efficient registration

Registering Nidhi Company comes with pocket-friendly cost. The minimum capital requirement for registration of Nidhi Company is Rs 5, 00, 000 lakh where you have the opportunity to invest the capital within the 2 months after the registration also by paying the Registering fees of Rs 19,999/- only.

3. 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.

4. More Certainty in Nidhi company

In India, everyone likes to do the savings from six year old child to sixty year 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.

5. 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 a safest route for lending loan and the loans given to members are at very less rates than other which again bring greater savings amongst members.

6. 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 deposit of twenty rupees.

7. Nidhi company software – helping hand

One of the benefits of registering Nidhi Company is that it comes with a extremely useful, user –friendly and beneficial software called Nidhi company software at a very reasonable price which help you to do all the Nidhi related business activity very easily.


Nidhi Company is trending these days in financial market. People from all over India have been registering Nidhi Company seeing it’s benefits and also it is a safest route for staring a finance business in India at very less cost.

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Qualification: LL.B / Advocate
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Location: Noida, New Delhi, IN
Member Since: 15 May 2018 | Total Posts: 2
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August 2021