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A Nidhi Company, is one that belongs to the non-banking Indian finance sector and is recognized under section “406” of the Companies Act, 2013. Their core business is borrowing and lending money between their members. Nidhi Companies are created for cultivating the habit of saving among the members.
Nidhi Companies can accept/ lend funds only from/ to its members. They are regulated by Ministry of Corporate Affairs, Section “406” of Companies Act 2013 and Companies Nidhi Companies Rules, 2014 govern Nidhi companies. Reserve Bank of India is empowered to issue directions to them in matters relating to their deposit acceptance activities, However as Nidhi Companies only accept/lend funds only from/to its members, RBI has exempted Nidhi Companies from the core provisions or regulations applicable on NBFC. Every Nidhi required to file Nidhi forms periodically apart from regular compliances of a limited entity.
Lawfox provide a complete compliance solution for your Nidhi Business, our services include Nidhi forms, annual and event based ROC compliances, Income tax compliance and GST compliance. Book a call with our expert and get a customized quote for your Nidhi and manage your compliances easily.
NIDHI MITRA PACKAGE
Nidhi Business Set-up Services
Annual Compliance Package
Accountancy and Auditing Services
Maintenance of Statutory Books and Records
GST and TDS Services
Form NDH-1 (Return of Statutory Compliances)
Every Nidhi must meet all of the following criteria:
1. It must have minimum 200 members,
2. It must also ensure that net owned funds are Rs. 10,00,000/- or more,
(‘Net owned funds’ mean the aggregate of paid up equity share capital and free reserved as reduced by the accumulated and intangible assets appearing in the last audited balance sheet),
3. It must also ensure that the ratio of net owned funds to deposit is not more than 1:20.
4. It must have unencumbered term deposits of not less than 10% of the outstanding deposits.
If the Nidhi Company satisfies above conditions, The Company shall within 90 days from the close of first financial year after incorporation, file NDH-1 duly certified by a Practicing CA/CS/CWA along with the prescribed fees.
Form NDH-2 (Application for extension of Time)
In case at the end of first financial year Nidhi is not able to meet above requirements, Nidhi Company shall within 30 days from the close of first financial year, apply to the Regional Director in form NDH-2 for extension of time along with the prescribed fees.
If even after second financial year Nidhi is not able to meet the above requirements, then the Nidhi Company shall not accept any further deposits till it complies with the provisions, and Nidhi will be liable for penal consequences.
Form NDH-3 (Half Yearly Return)
Every Nidhi company shall file half yearly return with the Registrar in Form NDH-3 along with such fee as provided in Companies (Registration Office and Fees) Rules, 2014 within thirty days from the conclusion of each half year duly certified by a company secretary in practice or chartered accountant in practice or cost accountant in practice.
The auditor of the company shall furnish a certificate every year to the effect that the company has complied with all the provisions contained in the rules and such certificate shall be annexed to the audit report and in case of non-compliance, he shall specifically state the rules which have not been complied with.