To establish a Nidhi Company, the following criteria must be met:
Within one year of incorporation, a Nidhi company must satisfy the following conditions:
To apply for registration the Nidhi Company must have a minimum of 7 members and 3 Directors. On fulfilling this condition the Nidhi Company can follow the below-mentioned process:
For obtaining incorporation the following documents will be required:
As per Rule 6 of Nidhi rules 2014, a Nidhi Company cannot perform the following activities:
Note:
S.NO. | COMPLIANCE | DUE DATE/WHEN TO BE DONE |
1. | RETURN OF STATUTORY COMPLIANCE (E-FORM NDH-1) | Every Nidhi shall within ninety days from the close of the first financial year after its incorporation and where applicable, the second financial year, file a return of statutory compliances. Attachment:
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2. | APPLICATION FOR EXTENSION OF TIME (E-FORM NDH-2) | Every Nidhi Company within 30days from the close of financial year apply to Regional Director (RD) in Form NDH-2 for extension of time. Situation: a) The Company fails to appoint 200 members within 01 year of Incorporation b) Company fails to maintain Ratio of Net Owned Funds to deposits of 1:20. Attachments: 1. Board resolution 2. Detailed application 3. Audited financial statements (last available) 4. List of all members with PAN and complete residential address 5. Amount of deposit accepted from each member 6. Reasons and justification for the application Note: The e-form need to be verified by Practicing Professional |
3. | RETURN FOR THE HALF YEAR ENDED (E-FORM NDH-3) | Every Nidhi company shall file half yearly return with the Registrar in Form NDH-3 within thirty days from the conclusion of each half year. Attachments:
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4. | APPLICATION FOR DECLARATION AS NIDHI COMPANY AND FOR UPDATION OF STATUS BY NIDHIS (E-FORM NDH-4) | Nidhi incorporated under the Act on or after the commencement of the Nidhi (Amendment) Rules, 2019 shall file Form NDH-4 within sixty days from the date of expiry of :- (a) one year from the date of its incorporation or (b) the period up to which extension of time has been granted by the Regional Director Note: in case a company does not comply with the requirements of this rule, it shall not be allowed to file Form No. SH-7 (Notice to Registrar of any alteration of share capital) and Form PAS-3 (Return of Allotment) |
5. | Annual General Meeting (E-FORM AOC-4) (E-FORM MGT-7) | File Financial Statement within 30 days of AGM in e-form AOC-4 and annual Return within 60 days of AGM in e-form MGT-7 |
COMPLIANCE | DUE DATE |
E-FORM DIR-3 KYC | Every Individual who has been allotted a Director Identification Number (DIN) on or before 31st March need to submit the form to Central Government on or before September 30 of immediately next Financial Year. Note: If someone have already filed the form but are willing to make changes in the information are required to fill the fresh form again with updated details in the current year. Penalty: After due date a penalty of Rs. 5000 shall be payable. Attachments: 1. Proof of Permanent Address 2. Copy of Aadhaar Card (Optional) 3. Copy of Passport (Optional) 4. Copy of PAN 5. Proof of Present Address (if permanent and present address is different) |
E-FORM DIR-3 KYC WEB | Any individual who has already submitted the e-form DIR-3 KYC and who does not want to update in their KYC can file annual KYC by accessing DIR-3 KYC Web service. Penalty: After due date a fee of Rs. 5000 shall be payable. Attachment: You only need OTP of Mobile Number and E-mail id. No other documents are required |
E- FORM DPT-3 | Every Company other than Government Company shall be required to file this form on or before June 30 of every year with Registrar whose return of deposit or particulars of transaction or both not considered as deposit. Attachment : 1. Auditor’s Certificate (Mandatory) 2. Copy of Trust Deed (Mandatory if Company has trust deed) 3. Copy of instrument creating charge (Mandatory if mentioned in form) 4. List of Depositors (Mandatory if Company has balance of deposits outstanding at the end of the year) |
E-FORM BEN-2 | On receipt of declaration of BEN-1 every company shall file a return in BEN-2 with Registrar within 30 days from the date of receipt of such declaration. Attachment: Declaration from SBO (Significant Beneficial Owner) in Form BEN-1 from each shareholder having 10% or more shares of voting rights |
Deposit Made (Rs) | Loan Granted (Rs) |
Less than 2 crores | 2 lakh |
Greater than 2 crores but less than 20 crores | 7.5 lakh |
Greater than 20 crores less than 50 crores | 12 lakh |
50 crores or more | 15 lakh |
A Nidhi company that has not made profits continuously in the three preceding financial years, shall not make any fresh loans exceeding 50% of the maximum amounts of loans specified above. A member shall not be eligible for any loan if he has defaulted on any prior loan repayment.
The loans can be granted only against the following security
Nidhi Companies cannot grant a personal loan, vehicle loan, hire purchase, or microfinance. Nidhi companies are formed for the purpose of inculcating the habit of saving among their members and is governed by the Companies Act. Although Nidhi companies are non – banking finance companies they are excluded from the core provisions of the RBI Act and other directions applicable to NBFCs.