A Nidhi Company is a type of Non-Banking Financial Company (NBFC) in India, established with the primary objective of cultivating the habit of thrift and savings among its members. These companies are allowed to take deposits from and lend to their members, making them a unique entity within the Indian financial landscape. However, like all registered companies, Nidhi Companies must adhere to a set of annual compliance requirements to maintain their legal standing and ensure smooth operations.
Annual compliance for a Nidhi Company is not just a regulatory obligation but also a reflection of its commitment to transparency and good governance. By complying with these requirements, a Nidhi Company assures its members and regulators of its financial health and operational integrity.
The following are the key annual compliance requirements for a Nidhi Company in India:
The following documents are typically required to fulfill the annual compliance requirements for a Nidhi Company in India:
Annual compliance is a critical aspect of managing a Nidhi Company in India. By adhering to these obligations, companies not only ensure their legal standing but also build trust with members and regulators, avoid penalties, and secure long-term success. Understanding the requirements, preparing the necessary documents, and adhering to deadlines can help Nidhi Companies maintain smooth operations and achieve their business goals. Whether you are a newly established Nidhi Company or an established one, staying compliant is essential for sustainable growth and member confidence.
Non-compliance with annual filing requirements can result in penalties, suspension of operations, and even the company being struck off the MCA register. Directors may also face disqualification.
Yes, every Nidhi Company, regardless of its turnover, must have its accounts audited by a Chartered Accountant annually.
Yes, a Nidhi Company can file its annual returns after the due date, but it will incur late filing fees and penalties as prescribed by the MCA.
Form NDH-1 is an annual return that Nidhi Companies must file to report details about their members, deposits, loans, and the ratio of net owned funds to deposits.
The penalty for non-filing of Forms NDH-1 and NDH-3 is ₹200 per day per form until the filing is completed, with no upper limit on the penalty.
Yes, it is mandatory for every Nidhi Company to hold an AGM within six months of the end of the financial year. The first AGM should be held within nine months of incorporation.
Yes, Nidhi Companies must also comply with various other regulations, such as maintaining the minimum net owned funds to deposits ratio, filing half-yearly returns, and meeting the minimum number of members.
Yes, if a Nidhi Company cannot meet the required deposit ratio, it can file Form NDH-2 within 30 days of the end of the first financial year, requesting an extension from the Regional Director.
Statutory audits ensure that the company’s financial records are accurate and compliant with regulatory requirements. It helps maintain transparency and trust among the members and regulators.