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Nidhi Company Compliance

Nidhi companies primarily deal with borrowing and lending money among their members. These are non-banking financial corporations regulated by the Ministry of Corporate Affairs (MCA) and Nidhi Rules, 2014. The Nidhi rules are introduced under the Companies Act, 2013 for only Nidhi companies.

Understand the common annual compliance obligations for Private Limited Companies:

  • Minimum members: Nidhi company must have a minimum of 200 members within one year of incorporation.
  • Net-owned funds: The company must maintain a minimum net worth of Rs. 10 lakhs as prescribed by the Nidhi Rules.
  • Deposit limits: This non-banking financial corporation accepts deposits exceeding 20 times.
  • Interest rates: Interest rates offered on deposits should be reasonable and not exceed the rates prescribed by the RBI
  • Loan limits: These companies can provide loans to their members against various types of securities, but the total loan amount should not exceed 2 times.
  • Compliance certificate: A compliance certificate is necessary for Nidhi Company by a practicing company secretary every year.
  • Annual filing: Nidhi companies must file their financial statement, annual returns, and other necessary documents with the Registrar of Companies (RoC) within prescribed time limits.
  • Minimum board members: Nidhi company should consist of at least 3 directors.
  • Utilization of deposits: The company should utilize at least 90% of its deposits for providing loans to its members

Penalties for non-compliance of Nidhi companies:

  • Penalties are levied when the Nidhi company fails to comply with the required annual filings as prescribed under the Companies Act and Nidhi rules.
  • In case of non-payment and default, the organization and concerned officers will be fined an amount up to Rs. 5000.
  • And, if the default continues, the company will be charged a fine of Rs. 500/per day.

How do we help Nidhi Companies file annual compliance?

AtDarshan Corporate Pvt Ltd, we offer complete assistance to our clients regarding Nidhi Company's annual filing and compliances. We have experienced compliance experts who listen to your concerns and provide effective solutions. We offer end-to-end support to our clients and deliver financial and legal services at competitive price ranges.

Types of Nidhi Company Compliance

Nidhi company is also called Mutual Benefit Finance Company. The annual filing and compliance are of two different types as mentioned under Nidhi Company Rules and Companies Act, 2013. Read the following types listed below:

  • Annual compliance: Annual compliance usually refers to the compliances that involve the performance and status of the Nidhi company compliance for the whole year. In this criteria, the compliances are filed annually to keep government authorities updated with the activities and functional divisions of the Nidhi companies in India.
  • Event-based compliance: These compliances are only filed during the incorporation of the Nidhi Company. Event-based compliance is basically filed at the time of alteration in the functions and structure of the company. Such alternation is non-periodical.

New rules for Nidhi Company Compliance

  • Any Nidhi company with a share capital of Rs. 10 lakh will need to submit a form NDH-4 and apply to the central govt. to be identified as Nidhi Company within approx. 4 months.
  • Nidhi company needs approval from the central government to function within 14 months from their incorporation.
  • The company must have at least 200 members and have a NOF (Net Owned Funds) of 20 lakh.
  • If the Nidhi company does not receive any recommendation from the Central Government within 45 days of submitting the form NDH-4, the approval would be considered to be granted.

What are the requirements of Nidhi company compliance?

  • It is necessary for every Nidhi organization that is registered under the Companies Act, 2013 to file an annual compliance.
  • Compliance states the exact insights about the company’s working performance.
  • For Nidhi companies, it’s essential to follow compliance since they fall under the category of public company.

You need to know before begin everything.

The primary motive of Nidhi Company is to borrow and lend money to its members.

The annual filings of the Nidhi Company are governed and regulated by Nidhi Rules, 2014, and the Companies Act, 2013.

According to Nidhi regulations, the Nidhi Company uses its assets to make loans to investors. It provides capital and small amounts of loans for enterprises

Any individual who is above 18. He or she must have legal ID proof and address proof.