The main objective of Nidhi Company is to borrow or lend money to its members. These companies fall under the Non-Banking Financial Company (NBFC). Nidhi Company should file annual compliances, like all other companies in India. It should also comply with all the rules and regulations mentioned under the Companies Act, 2013, Nidhi Company Rules, 2014, and Nidhi Company (Amendment) Rules, 2022. In case of non-compliance, the company will be liable to pay fines and also to pay penalties for such defaults with its officers. In this blog, we will discuss the required compliances to be filed by Nidhi Company.
The Nidhi Company is governed or regulated by section 406 of the Companies Act, 2013. It is defined under section 406 (1), which stays that:
“A company which has been incorporated as a Nidhi with the object of cultivating the habit of thrift and savings amongst its members, receiving deposits from, and lending to, its members only for their mutual benefit.”
Source: mca.gov.in
This is the most suitable type of company for the individual who wants to establish a company with minimum capital investment.
The Nidhi company compliance requirements are parted into 3 categories:
There are 2 types of post-incorporation compliance that are:
The Nidhi Company has to satisfy the following compliance within the one year of incorporation:
Sr.No. |
Form Name |
Compliance |
Due date of filing |
1 |
Form NDH-1 Return of Statutory Compliance
|
This form includes all the data for the entire financial year on reserves, deposits, loan members, etc. These documents are sent to the Registrar using E-form GNL-2. |
Within the 90 days of the closure of financial year. |
2 |
Form NDH 3 Half-yearly return |
This form is filed with the Registrar of Companies (ROC) |
Within 30 days from the conclusion of half a year. It needs to be properly certified by a professional expert. |
3 |
Form ADT-1 |
Appointment of auditor |
Within 15 days from the date of annual general meeting |
4 |
Form AOC-4 |
For submitting financial records and other supporting documents with the ROC. |
Within the 30 days from the date of annual general meeting |
5 |
Form MGT-7 |
Filing of annual return |
Within the 60 days from the date of Annual General Meeting |
6 |
ITR-6 |
Income tax return |
30th September |
The third or final type of compliance of Nidhi Company is event-based compliance. This type of compliance is required to file once during the registration process of the company. Additionally, these compliances must be fulfilled whenever the non-periodic structure of the Nidhi Company changes. The events in which Nidhi Company has to file compliance are listed below:
It is compulsory for Nidhi Company to file compliances as per the provision specified under the Companies Act, 2013 and all other relevant acts. In case of failure to comply with compliances the company will incur some liabilities, which are:
Nidhi Companies were formed to motivate its shareholders to save money for unexpected expenses and with careful preparation to save money, they might become financially independent and be prepared for unforeseen expenses. A Nidhi company must comply with annual filings and other compliances in order to avoid fines and smooth running of business.
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