Nidhi means "fund," "finance," or "wealth." Nidhi Company was founded to in still the practice of thrift, saving, and reserving funds among its members and taking deposits and lending exclusively from and to its members for their mutual benefit.
Nidhi company must meet the following minimum requirements to be registered:
Nidhi Company must file returns twice a year with the ROC and yearly returns once a year. Nidhi Company is also obliged to file its Financial Statements in Form AOC 4 and Annual Return in Form MGT 7 with the ROC annually.
Every Nidhi must meet the following requirements
Suppose Nidhi cannot complete the conditions above by the end of the first financial year. In that case, Nidhi Company must apply to the Regional Director in form NDH-2 for an extension of time and the necessary fees within 30 days of the end of the first financial year.
Suppose Nidhi cannot achieve the preceding standards even after the second financial year. In that case, the Nidhi Company will not accept any more deposits until it complies with the conditions, and Nidhi will be subject to penalties.
following 30 days of the end of each half-year, every Nidhi company must file a half-yearly return in Form NDH-3 with the Registrar, along with the fee specified in the Companies (Registration Office and Fees) Rules, 2014, duly certified by a company secretary in practice, chartered accountant in practice, or cost accountant in practice.
Every year, the company's auditor shall issue a certificate stating that the company has complied with all of the rules' requirements, which certificate shall be affixed to the audit report. In the event of non-compliance, he shall precisely indicate the regulations that have not been complied with.
Compliance with company law is a legal requirement for all businesses, and it promotes openness. Consistent compliance improves the company's trust.
A yearly return is required of every Nidhi company. Once the statutory payments have been paid to the Registrar, the annual return is also accessible for public inspection.
Within 30 days at the end of each half-year, every Nidhi Company must file Form NDH-3 with the ROC. i.e., April 30th for the half-year ending March 31st and October 30th for the half-year finishing September 30th.