Nidhi Company- Pre Incorporation & Post Incorporation Compliances
Nidhi Company Registration in India
Nidhi Company is registered under the provisions prescribed in the Companies Act, 2013[1]. The only objective of forming a Nidhi Company is to cultivate the habit of thrift and savings amongst its members. The minimum capital requirement to start a Nidhi Company is Rs.5 lakh. Since Nidhi Company is not bounded to receive a license from the Reserve Bank of India, hence it is easy to form. Moreover, it is registered as a Public Limited Company and must have “Nidhi Limited” as the last word of its name. Now we are aware of the process of Nidhi Company Registration so, let’s learn about the crucial compliances.
What are the Compliances of a Nidhi Company?
Compliances of a Nidhi Company are divided into three parts:
- First is Pre-Incorporation Compliances,
- The second is Post –Incorporation Compliances, and
- The third is Event-based compliance.
Know about the Pre-Incorporation compliances of Nidhi Company
Every Nidhi Company has to follow some mandatory compliance to obtain Nidhi Company Registration.
The necessary compliances to be followed are mentioned below:
- A minimum of seven members is needed to start a Nidhi Company, out of which three members must be the Directors of the Company.
- A Minimum paid-up equity share capital of Rs. 5 lakh is required to start a Nidhi Company.
- Not to issue preference shares and if it is issued the same is to be redeemed as per the terms of the issue.
- Nidhi Limited” must be used as part of the name.
- Minor cannot be a member of a Nidhi Company.
- A trust or body corporate cannot be admitted as a member of Nidhi Company.
- Cannot accept the deposit of more than 20% of Net Owned Funds.
- Nidhi Company cannot open branches if it has not earned any profit after tax for consecutive three financial years.
- The rate of interest on the loan shall not exceed 7.5% above the highest rate of interest offered on deposits.
What is the Post –Incorporation Compliances of Nidhi Company?
What are the General Compliances to be followed by a Nidhi Company?
The Nidhi Company must ensure the following compliances within a year of Nidhi Company registration:
- The number of members should increase to at least 200 within one year of its incorporation.
- The Net owned Fund should be Rs. 10 lakh or more.
- The ratio of Net-owned Funds to the deposits must not exceed 1:20.
- As prescribed in Rule 14 of the Nidhi Rules, 2014, the deposits should not be less than 10% of the outstanding deposits.
- Maintenance of Books of Accounts.
- Maintain the statutory Registers.
- Convene Statutory Meetings.
What is the Annual Compliance of a Nidhi Company?
Annual compliance is followed to keep the Government updated on the activities and functional divisions of the company.
It is mandatory for Nidhi Companies to follow annual compliances mentioned below:
| Form No | Compliance | Due Date |
| Form NDH-1 | Return of Statutory Compliance. This form contains all the details regarding members, deposits, loans, reserves etc. for the full financial year. e-Form GNL-2 for submission of the documents with the Registrar. | Within 90 days from the close of financial year along with fees. It must be duly certified by PCA/PCS/CMA. |
| Form NDH-2 | Application for Extension of Time. This form is filled in case :
| NDH-2 must be filed with the Regional Director within 90 days from the closure of financial year along with the prescribed fees. |
| Form NDH 3 | Half-yearly return to be filed with the ROC (Registrar of Companies). | Within 30 days from the conclusion of half a year. It must be duly certified by a practicing professional. |
| Annual General Meeting | 30th September | |
| Form AOC-4 | For filing financial documents and other supporting documents to the Registrar of Companies. | Within 30 days of the annual general meeting. |
| Form MGT-7 | Annual Return | Within 60 days of the Annual General Meeting. |
| ITR-6 | Income Tax Return | By 30th September |
Created & Posted by Aashima
Accounts Executive at TAXAJ
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