Overview
A Nidhi Company is a type of Non-Banking Financial Company recognized under Section 406 of the Companies Act, 2013 and governed by the Nidhi Rules, 2014. It is formed with the objective of cultivating the habit of savings among its members and providing loans only to its members. A Nidhi Company cannot deal with the general public for lending or deposit activities. It works on the principle of mutual benefit and is restricted to its registered members.
Even though Nidhi Companies enjoy certain relaxations from RBI regulations, they are strictly regulated by the Ministry of Corporate Affairs. Annual compliance for a Nidhi Company is very important because it deals with public money in the form of member deposits. The company must ensure proper maintenance of records, timely filing of returns and compliance with capital and membership requirements. Noncompliance may lead to heavy penalties and even closure of the company.
Annual compliance includes conducting board meetings, holding Annual General Meeting, maintaining minimum 200 members, maintaining Net Owned Funds of minimum Rs 10 lakh, maintaining ratio of Net Owned Funds to deposits as prescribed, and filing various ROC forms. Important forms include NDH 1, NDH 3, AOC 4, MGT 7 and DIR 3 KYC. The company must also file Income Tax Return and comply with TDS and GST provisions if applicable. Regular compliance ensures smooth functioning and legal protection.
At BizGlobal, we provide complete annual compliance support for Nidhi Companies. Our team monitors due dates, prepares required documents, drafts resolutions and ensures timely filing of all mandatory forms. We help you maintain statutory ratios and avoid penalties so that your Nidhi Company can focus on serving its members effectively and legally.
