Post-incorporation compliance of a Nidhi Company is a crucial aspect of its operations. A Nidhi Company is a type of Non-Banking Financial Company (NBFC) that promotes savings and mutual benefit among its members. While the process of incorporation is important, ensuring compliance after incorporation is equally essential to maintain transparency, credibility, and legal recognition.
What is a Nidhi Company?
A Nidhi Company is governed by Section 406 of the Companies Act, 2013 and the Nidhi Rules, 2014. Its primary objective is to encourage savings and lending among members only. Since it operates in the financial sector, strict compliance is necessary to protect members’ interests.
Why Compliance Matters for Nidhi Companies?
- Maintaining compliance after incorporation ensures:
- Legal recognition and avoidance of penalties
- Smooth functioning of the company
- Trust and confidence among members and investors
- Eligibility for expansion and growth
- Financial transparency in operations
Post-Incorporation Compliance Checklist for Nidhi Company
Here is a step-by-step compliance list every Nidhi Company must follow after incorporation:
1. Filing Form NDH-1 (Within 90 Days)
Details of members, deposits, loans, and reserves must be filed with the Registrar of Companies (ROC).
Certified by a Chartered Accountant/Company Secretary/Cost Accountant.
2. Minimum Membership Requirement
Within a year of incorporation, there must be 200 or more members.
3. Minimum Net Owned Funds (NOF)
Maintain a minimum ₹10 lakh NOF within one year of commencement.
4. Ratio of Net Owned Funds to Deposits
Deposits cannot exceed 20 times the NOF.
5. Unencumbered Term Deposits
At least 10% of outstanding deposits must be maintained as unencumbered term deposits in a scheduled bank.
6. Filing Form NDH-2 (If Extension Needed)
If unable to meet members/NOF requirements, apply to Regional Director in Form NDH-2 for extension.
7. Filing Form NDH-3 (Half-Yearly Return)
Every Nidhi Company must file NDH-3 with ROC within 30 days of closing each half year.
Requires certification by a professional (CA/CS/CMA).
8. Annual Return Filing
File Form NDH-4 (if applicable) for declaration.
For financial statements, file AOC-4; for annual returns, file MGT-7.
9. Board Meetings & Statutory Records
Conduct at least two board meetings every year.
Maintain minutes book, register of members, and financial records.
Key Annual Compliance for Nidhi Companies
- AOC-4 – Filing of financial statements
- MGT-7 – Annual return filing
- NDH-1 – Annual return of statutory compliances
- NDH-3 – Half-yearly return of compliances
- ITR Filing – Income Tax Return for the company
Penalties for Non-Compliance
- Failure to comply with post-incorporation rules may result in:
- Monetary penalties on the company and directors
- Restriction on accepting deposits
- Possible cancellation of company status by the ROC
How Does Registration Guru Help?
At Registration Guru, we provide end-to-end compliance solutions for Nidhi Companies. Our expert team ensures that your company:
- Files all statutory forms (NDH-1, NDH-2, NDH-3, AOC-4, MGT-7) on time
- Maintains proper records and registers
- Meets minimum membership and NOF requirements
- Avoids penalties and ensures 100% compliance
With years of expertise, we’ve assisted numerous Nidhi Companies in managing their compliance smoothly.
Conclusion
Compliance is the backbone of any registered company, especially a Nidhi Company, which deals with members’ funds. By adhering to post-incorporation compliance requirements, you not only stay legally protected but also build long-term trust and credibility.
If you are running a Nidhi Company and want hassle-free compliance services, connect with Registration Guru today for expert guidance.
FAQs on Nidhi Company Post-Incorporation Compliance
1. How many members are required for a Nidhi Company?
200 members or more within a year of organization.
2. What is NDH-1 form?
NDH-1 is a statutory return of Nidhi Company showing members, deposits, loans, etc. filed within 90 days of incorporation.
3. Is NDH-3 filing mandatory?
Yes, NDH-3 must be filed half-yearly with ROC.
4. Can a Nidhi Company accept deposits from non-members?
No, deposits and loans can only be accepted from members.
5. What is the penalty for non-compliance?
Non-compliance may lead to heavy fines, restrictions, or even cancellation of Nidhi Company status.