Benefits Of Formation Of Nidhi Company

(A) Limited Liability

Shareholder enjoys limited liability to the extent of capital invested. In case of any unforeseen liabilities, it would be limited to the company and not impact the shareholders. Shareholder's personal assets protected in the event of the company's insolvency.

(B) Separate Legal Existence

A company is a Separate legal entity from its Owners and Management in the eyes of law.It can have a PAN number, bank accounts, licenses, approvals, contracts, assets and liabilities in its unique name.

(C) Credibility

A Nidhi Company has more credibility as compared to any other Non-profit organization structure like Trust or Society and NGOs.

(D) Perpetual Existence

Company existence will go for ever and its existence will not be effected by the death of shareholders, directors or transfer of shares to others.

(E) Funding

Nidhi Company is the safest and the cheapest way of inviting deposits from the general public. Funds can be taken from registered members only.

(F) Micro Banking

Obtaining loans, by its member, from Nidhi Company come at a cheaper rate than loans from banks and other NBFCs.