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Nidhi Company

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:

  • A minimum of 7 people is required.
  • Three directors are required.
  • All such companies must add "Nidhi Limited" to their names.
  • Every Nidhi company must have at least 200 members within one year of its establishment.

Annual Filing of Nidhi Company

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.

Form NDH 1 Return of Statutory Compliances

Every Nidhi must meet the following requirements

  • There must be a minimum of 200 members.
  • It should also ensure net-owned funds are at least Rs. 10,00,000/- ('Net owned funds' means the overall average of paid-up equity share capital and free reserved as reduced by accumulated and intangible assets appearing in the most recent audited balance sheet)
  • It must ensure that net-owned funds' ratio to deposit is not more than 1:20.
  • It must have at least 10% of its outstanding deposits in unencumbered term deposits.

Form NDH 2 Application for Extension of Time

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.

Form NDH 3 Half Yearly Return

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.

Certificate of the auditor

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.

Details required for Nidhi Company Annual Filing

  • Bank Statement for the financial year
  • Details about the members, including any cash transaction
  • Members' loans and deposits are detailed, and any reserves exist.
Following are the forms required to be filed by Nidhi company every year with ROC
  • Form NDH 1
  • Form NDH 3
  • MCA Form MGT 7
  • MCA Form AOC 4
Documents required for Form MGT 7:
  • Company Registration Certificate copy
  • Company PAN Card copy
  • List of main business activities.
  • Details of shares and shareholding
  • List of debentures and loans
  • Details of other securities held by the company
Documents Required for Form AOC 4:
  • Company financial statement
  • Company Audit Report
  • Company Director’s Report.
  • Notice of AGM
Documents Required for Form NDH -1
  • Company Incorporation Certificate
  • Details related to Memorandum subscriber
  • New member admitted up to two financial years from the date of incorporation.
  • Member ceased up to two financial years from the date of incorporation
  • Details of Paid-up equity share capital, Free reserve, Accumulated losses
  • Details of deposits in scheduled commercial banks, post office
  • Details of outstanding deposits
Documents Required for Form NDH 3
  • Company Incorporation Certificate
  • Details related to branches of Nidhi Company
  • Details related to members of Nidhi Company
  • Details related to deposits of Nidhi Company
  • Details related to loans of Nidhi Company
  • Details related to litigations of Nidhi Company
  • Last year audited financial statement require for calculation of NOF
  • Details related to unencumbered Term Deposits of Nidhi Company.

Benefits of Annual Filing for a Nidhi Company

Compliance with company law is a legal requirement for all businesses, and it promotes openness. Consistent compliance improves the company's trust.

  • Annual compliance is vital for maintaining active status
  • Annual compliance ensures clients that the company evaluates its operations regularly. That is why people are more likely to trust the company's behaviour.
  • Annual compliance provides you a leg up on the competition. It can promote a business and reassure investors or customers about its operations.
  • Companies' annual compliance guarantees that the data gathered for annual compliance is accurate.
  • When smaller companies fail to comply with annual compliances, they can face severe penalties. As a result, yearly compliance ensures that significant penalties are avoided

Plans

Rs. 9999 (Excluding Gov. Fee)

Starter

  • Company Having Turnover Up to Rs. 50 Lakhs
  • Annual Filing Of MCA
  • Board Resolution Related Work
  • Director KYC (Up to 2 Director)
  • Expert Support
Rs. 14999 (Excluding Gov. Fee)

Plus

  • Company Having Turnover Up to 1 Crore
  • Annual Filing Of MCA
  • Board Resolution Related Work
  • Director KYC (Up to 2 Director)
  • Expert Support
Rs. 44999 (Excluding Gov. Fee)

Pro

  • Company Having Turnover Up to 2 Crore
  • Annual Filing Of MCA
  • Board Resolution Related Work
  • 12 Month Business Accounting
  • Financial Statement Preparation
  • Company ITR Filing
  • Director KYC (Up to 2 Director)
  • Expert Support

FAQ's

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.