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NIDHI – (National Initiative for Developing and Harnessing Innovations). Most companies in India cater to a larger amount of money, A Nidhi company, which is Non- Banking financial sector and it comes under the Companies Act 2013 and is managed as per RBI’s guidelines. The Primary business is borrowing as well as lending funds between their members and the company. These deposits are then used by the company for its members, to provide loans and advances. Since all the transactions are focused on the Shareholders of the Nidhi Company.  The Ministry of corporate affairs governs these entities in India and reserves the right to issue directions related to deposit acceptance activities. These companies are more prevalent in the southern parts of India. They also know as Benefits Funds, Permanent Fund etc.

What is Nidhi company Compliance?

“NIDHI” means a company which has been incorporated as a Nidhi with the object of cultivating the habit of thrift and savings amongst its members. Receiving deposits form, and lending to, its members only. For their mutual benefit, and which complies with the rules made by the central government for regulation of such class of companies.

BENEFITS:

1. It’s a very easy and simple way of Nidhi company formation. Such minimum of Seven Members, out of three persons will be appointed for directors and an easy and hassle-free documentation process.

2. It is a Separate legal entity which means it can acquire assets and incur debts in its own name.

3. The Concept and Objectives of a Nidhi company are certainties of saving and to promote among Indian people.

4. Nidhi Company rules are the single Regulatory Body.

5. If the Company suffers any losses or issues, the Personal assets of directors and Shareholders are secure. Because the Personal liabilities of the members cannot be used to meet the company’s liabilities.

6. The members can borrow from the funds contributed by themselves at lower interest rates.

COMPLIANCE FOR NIDHI COMPANY:

AFTER INCORPORATION:

PARTICULARS DETAILS TIMELINE FORMS/ATTACHMENTS
Current Account Open bank Current Account with company name 30 days Bank Account

Incorporation certificate
MOA
AOA
Other optional Attachments( if any)

Commencement of Business A declaration needs to be submitted by directors that the subscribers have contributed to the capital mentioned in the MOA. Within 180days of incorporation INC-20A

Current Account Bank statement with deposit paid-up capital.

Board Meeting Conduct the board meeting to file application to central government for declaration as Nidhi company Within 30 days of incorporation Board Resolution
Filing the application of Declaration of Nidhi company The central Government for declaration as Nidhi company. 60 days NDH-4

Board resolution of director and Proposal of company.
Certificate of directors.
Certificate of auditors
Optional Attachment ( if any).

Nidhi company Official Gazette It shall notify the company as a Nidhi or mutual benefit society in the official Gazette. 45 days
Return of Statutory compliance The First financial year after its incorporation and where applicable. The Second financial  year, file a return of statutory 90 days NDH-1

Pan and Complete residential address.
Amount of deposit accepted
Break  up of deposits.

MANDATORY COMPLIANCE:

PARTICULARS DETAILS TIMELINE FORMS/ATTACHMENTS
Application to regional Director Application relating to the extension of timeline for not meeting requirements of members and deposits as required post-incorporation. 30days of Closure of financial year NDH-2

Board resolution
Detailed Application
Audited financial Statement
Amount of deposit accepted from each member

 Return of Half  year Ended Every Nidhi company shall file half yearly return with the Registrar 30days from each half year. NDH-3
Annual General Meeting Every company is needed to hold an annual general meeting on or before 30th September every year during working hours Every year 30th September Notice of AGM with explanatory statement
Account of Companies Each and every company is expected to file Balance sheet in AGM Within 30 days of AGM [AOC-4]

Notice of AGM.
Boards report
AOC-2
Auditor report
Financial Statement.
Shorter consent (if applicable).

Annual Return Each and Every private limited company is expected to file its annual return of operating of annual general meeting Within 60 days of AGM [MGT-7]

List of Directors
List of Shareholders

DIN KYC The DIN KYC procedure must be completed for each financial year for the directors of the company 30th September of every year EFORM DIN KYC.
Income Tax Return Companies registered in India and operating a business for profit . 30th November ITR-6
DPT-3 This return furnishing information about deposits and/or outstanding receipt of loan or money other than deposits 30th June of every year DPT-3

Auditor’s certificate.
Copy of trust deed
Deposit Insurance contract
List of depositors
Copy of instrument creating charge.

EVENT-BASED COMPLAINCE:

1. Any change in the company’s name.

2. Change in Registered office address.

3. Appointment or Resignation or Removal of Director.

4. Appointment or Resignation or Removal of Auditor.

5. Any amendment in the company’s objective.

6. Transfer of shares.

7. Increase in the authorized capital of the company.

8. Appointment of the Key Managerial Personnel.

9. Any other changes those is event-based.

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