Get Online Nidhi Company Annual Compliance and cost of it

Nidhi Company is categorized as a non Banking Financial Company (NBFC) as per the Indian Law. You cannot find this kind of company in any other Country other than India. Nidhi Company’s primary area of service is to provide financial assistance to their members, only.

The most pleasant news is that it is very easy and affordable to form a Nidhi Company. And you will have to pay minimum fees at the time of registration. You can pay only ¹ 14,999/- and get your Nidhi Company registration done.

Nidhi Company also needs to follow various compliance rules like all other legal entities. There are three types of compliance rules a Nidhi Company needs to follow. These are:-

• Compliance before Incorporation
• Compliance after Incorporation
• Event Based Compliance

Nidhi Company Compliance before incorporation/registration

You need to pass the below mentioned checklist to submit for the registration process.

• You need minimum 7 members to file for a Nidhi Company. Among these 7 members, 3 people must file their membership as the Director of the same.
• Paid-up capital must not be less than ¹ 5lakhs.
• You must use the term “Nidhi Limited” while naming your Nidhi Company.
• You cannot enlist any minor, corporate entity, trust as the member of the Company.
• A Nidhi Company cannot collect and deposit of more than its Net Owned Fund.
• Opening a new branch of Nidhi Company is subject to earning the Profit after Tax for 3 consecutive years.
• You cannot charge your Nidhi Company loan’s rate of interest of more than 7.5% over the Interest rate that is offered on the deposit amount.

Nidhi Company Compliance after the Registration/Incorporation

After the incorporation of your Nidhi Company, you need to follow another set of compliance rules. Check the rules below:-

• You must raise the total number of members of your Nidhi Company to 200 within the first year of registration.
• The net owned funds of the Nidhi Company must be increased to ¹ 10 lakhs, minimum.
• Net owned Fund and Deposit ratio should never exceed by 1:20.
• As per the Nidhi Company Rules, the deposit amount must not be lower than the total outstanding deposits of 10%.
• Open a Current Account with the Nidhi Company name in any registered bank.
• Within 6 months or 180 days of establishment, you need to file for Form 20A.
• Statutory convention is mandatory.
• Maintenance of statutory registers and Book of Accounts.

Nidhi Company Annual Compliance Calendar

You also need to adhere to the Annual Compliance checklist that is mentioned below.

Form NDH 1 (Annually) - You need to file NDH-1 form (return of statutory compliance) within 90 days of from the closer of the first financial year of your Nidhi Company. It needs to be certified by the Company Secretary or Cost Accountant or Chartered Accountant (in Practice) and submit to the respective authority along with fees.

Form NDH-2 (for Continuation) - If your Nidhi Company does not have the scheduled 200 members within 30 days of closing its first financial year, then you need to file form NDH-2 and submit the same to the Regional Directors of the Ministry of Corporate Affairs.

Form NDH-3 (half-yearly return disclosure) - You will have to file the Form NDH-3, to confirm if your Nidhi Company is working as per the rules and regulations. It should be done within 30 days of the half-year closing and the same need to be signed by the respective authority (CMA/PCA/PCS)

Form NDH-4 (declaration and updating the status as Nidhi) -  NDH-4 is a onetime declaration which affirms that your Nidhi Company has complied with the minimum number rules.

Form MGT-7 (annual Return) - Like any other Company, a Nidhi Company needs to file for the Annual Return, every year.

Form AOC-4 (financial Statements) - Your Nidhi Company needs to submit Profit and Loss statement and Balance Sheet on yearly basic to the Ministry of Corporate Affairs.

Form ITR-6 - File Income Tax Return like any other Company.