Annual compliance to do in Nidhi company
Nidhi company in India, governed by Section 406 of the Companies Act of 2013 and regulated by the Ministry of Corporate Affairs, plays a vital role in encouraging members to save and spend responsibly. To maintain legal operations and avoid penalties, many businesses must meet specified annual compliance standards. The annual compliance for Nidhi Companies in India has been rewritten and presented here in a comprehensive manner. Get a registration certificate with the Registration Guru website and start to do work.
1 Annual General Meeting
· Nidhi companies have to hold their AGM every year.
· The first AGM must be held within nine months of the end of the first financial year. In subsequent years, it must be held within 6 months after the end of the financial year, but not later than 15 months from the previous AGM.
2 Filing Annual Return
· Nidhi company uses Form MGT-7 to file their annual returns.
· This form contains information about members, shareholding structure, and other statutory information.
· The time to file is 60 days after the Annual General Meeting.
3 Filing of Financial Statements
· Form AOC-4 should be used to provide financial statements such as balance sheets and profit and loss accounts.
· The filing date is 30 days after the AGM.
4 Form NDH-1: Return of Statutory Compliances
· This form summarizes with fund rules for 2014
· It must be filed once a year, within 90 days of the close of the financial year.
· The number of members, deposits taken, loans given, and reserves maintained are all details.
5 Form NDH-3: Half-Yearly Return
· The Filing is done every two years, from April to September and October to March.
· This form must be completed within 30 days of the end of each half-year term.
6 Form NDH-4: Declaration for Continuation as Nidhi
· Nidhi companies must file this form to show that they comply with Nidhi rules, which include having a minimum of 200 members and maintaining a net owned fund-to-deposit ratio of 1:20.
· It is important that existing enterprises confirm their funding position.
7 Income Tax Return (ITR)
· Form ITR-6 should be used by Nidhi companies for filing annual Income Tax Returns.
· Unless the Government extends it, the customary due date is September 30 of each assessment year.
8 Maintenance of Statutory Registers
· Statutory records like member, loan, deposit, and charges registers should be maintained properly.
· These registers are frequently audited during the compliance phase.
9 Audit of Accounts
· Nidhi companies should get their accounts audited by a competent chartered accountant.
· Audited financial statements form the basis of many compliance filings.
10 Compliance with Membership and Deposit Rules
· Make sure the number of members does not go below 200.
· Maintain a deposit-to-net-owned fund ratio of 1:20.
· Restrict member deposits within the limits of funds rules.
Penalties of Non-Compliance
Non-compliance with these regulations may attract penalties under the Companies Act 2013. MCA can also take disciplinary action such as cancellation of the fund’s status.
Conclusion
Annual Compliance under Nidhi Companies is required to maintain reputation and efficient operations. Compliance with these rules helps avoid legal complications and develops confidence among members. If you are managing a Nidhi Company or wish to start one, it is highly recommended to hire an expert for timely compliance advice.