Nidhi Company Annual Compliances

  • Tax & Compliance
  • Nidhi Company Annual Compliances

Nidhi Annual Compliances Process

Step 1
Prepare documentation
Step 2
Fill the application form
Step 3
Submit the
application form
Step 4
Wait for processing
Step 5
Process complete

To ensure annual compliance for a Nidhi Company in India, you can follow these general steps:

  • Hold Annual General Meeting (AGM): Conduct the AGM within six months from the end of the financial year (typically by September 30). During the AGM, various matters should be discussed, including the approval of financial statements, appointment/reappointment of directors, and any other business related to the company's operations.
  • Financial Statements: Prepare financial statements, including the balance sheet, profit and loss statement, and cash flow statement, in accordance with the applicable accounting standards. These statements should provide a true and fair view of the company's financial position and performance during the financial year.
  • Auditor Appointment: Appoint an auditor to audit the company's financial statements. The auditor should be a qualified Chartered Accountant and be independent of the company. Ensure compliance with the statutory requirements related to auditor appointment.
  • Filing Annual Return: File the annual return with the Registrar of Companies (RoC) within 60 days from the date of the AGM. The annual return includes details of directors, shareholders, changes in share capital, and other relevant information about the company's activities during the financial year.
  • Statutory Registers: Maintain and update the statutory registers as required. These registers include the Register of Members, Register of Directors, Register of Deposits, and Register of Loans and Investments. Ensure that these registers are accurate and up-to-date.
  • Compliance Certificates: Obtain compliance certificates as required under the Companies Act, such as the Secretarial Compliance Certificate and the Net Worth Certificate. These certificates provide assurance that the company is compliant with applicable laws and regulations.
  • Board and Shareholder Resolutions: Document board and shareholder resolutions passed during the financial year. These resolutions should cover various matters, such as approval of financial statements, declaration of dividends, appointment of auditors, and any other significant decisions taken by the company.
  • Tax Compliance: Comply with tax obligations, including filing the annual income tax return and paying any applicable taxes. Ensure that all tax-related documents, such as tax computation and tax payment receipts, are maintained and available for scrutiny.
  • Other Compliance Obligations: Ensure compliance with other applicable laws and regulations relevant to the company's operations. This may include sector-specific regulations, Nidhi Company rules, environmental regulations, labour laws, and any other statutory requirements.
  • 10. Board Meetings and Minutes: Hold regular board meetings as required under the Companies Act. Maintain minutes of these meetings, documenting the discussions, decisions, and resolutions passed during the meetings./li>

Here's a document checklist with the respective form numbers and submission dates for Nidhi Limited company annual compliance in India:

1. Form MGT-7: Annual Return

Submission Deadline: Within 60 days from the date of the Annual General Meeting (AGM), typically by September 30.

2. Form AOC-4: Financial Statements

Submission Deadline: Within 30 days from the date of the AGM.

3. Form ADT-1: Appointment of Auditor

Submission Deadline: Within 15 days from the conclusion of the AGM where the auditor is appointed.

4. Form DIR-3 KYC: Director's KYC

Submission Deadline: Annually, by April 30.

Form NDH-1: Return of Statutory Compliance

Submission Deadline: Within 90 days from the end of the financial year, typically by June 30.

6. Statutory Registers:

1. Register of Members: Maintain an updated record of members/shareholders.
2. Register of Directors: Maintain an updated record of directors and their interests in other entities.
3. Register of Deposits: Maintain details of deposits accepted by the Nidhi company.
4. Register of Loans and Investments: Maintain details of loans granted and investments made by the Nidhi company.

7. Financial Statements:

1. Balance Sheet
2. Profit and Loss Statement
3. Cash Flow Statement
4. Notes to Financial Statements

8. Auditor's Report:

Report prepared by the auditor providing an opinion on the financial statements.

9. Compliance Certificates:

1. Secretarial Compliance Certificate
2. Net Worth Certificate, if applicable

10. Board Meeting Minutes and Resolutions:

1. Minutes of the AGM and other board meetings held during the year.
2. One needs to submit resolutions passed by the board and shareholders.

11. Tax Compliance:

1. Income tax return and tax payment receipts.
2. Tax computation and other relevant tax-related documents.

NDH-3

  • NDH-3 is a form used for the filing of the Half-Yearly Return by Nidhi companies. The Half-Yearly Return provides information on the deposits received, deposits repaid, and any default in repayment of deposits by the company. It helps the Registrar of Companies (RoC) to monitor and regulate the activities of Nidhi companies.
  • The Half-Yearly Return in Form NDH-3 needs to be filed with the RoC within 30 days from the end of the first half of the financial year (April to September) and within 30 days from the end of the second half of the financial year (October to March).
  • Please note that this is a general checklist for Nidhi Company Annual Compliance, and it's important to consult with a professional, such as a company secretary or a legal expert, for accurate and detailed guidance on the specific compliance requirements, forms, and submission dates for your Nidhi Limited company's annual compliance.

Certainly! Here are some frequently asked questions (FAQs) regarding Nidhi company compliance and filings:

  • 01. What is a Nidhi company?

    A Nidhi company is a type of non-banking financial institution in India that promotes the habit of thrift and savings among its members. It primarily deals with accepting deposits and providing loans to its members.

  • 02. What are the minimum requirements to incorporate a Nidhi company?

    To incorporate a Nidhi company, you must have at least seven shareholders, three directors, a minimum paid-up equity share capital of Rs. 5 lakhs, and the company's name must include "Nidhi Limited."

  • 03. What are the compliance requirements for a Nidhi company?

    Nidhi companies must comply with various statutory requirements, including holding an Annual General Meeting (AGM), filing annual returns, maintaining statutory registers, complying with deposit limits and other Nidhi company rules, appointing auditors, etc.

  • 04. What is the timeline for filing annual returns and financial statements for a Nidhi company?

    The annual returns (Form MGT-7) and financial statements (Form AOC-4) of a Nidhi company should be filed with the Registrar of Companies (RoC) within 60 days and 30 days, respectively, from the date of the AGM.

  • 05. What are the requirements for the appointment of auditors in a Nidhi company?

    Nidhi companies must appoint a statutory auditor within 30 days of incorporation and subsequently at each AGM. The appointed auditor must be a practicing Chartered Accountant.

  • 06. Are there any restrictions on accepting deposits by a Nidhi company?

    Yes, Nidhi companies are subject to certain restrictions on accepting deposits, such as the maximum deposit amount per member and the total deposit to equity ratio. These limits are specified under the Nidhi Rules, 2014.

  • 07. Are Nidhi companies required to maintain statutory registers?

    Yes, Nidhi companies must maintain various statutory registers, including the Register of Members, Register of Directors, Register of Deposits, Register of Loans and Investments, etc.

  • 08. What are the penalties for non-compliance by a Nidhi company?

    Non-compliance with the regulatory requirements can result in penalties and legal consequences, including fines, disqualification of directors, or even the cancellation of the Nidhi company's registration.

  • 09. Can a Nidhi company provide loans to non-members?

    No, Nidhi companies can only provide loans to their members and not to non-members. Providing loans to non-members is not allowed under the Nidhi company regulations.

  • 10. Are Nidhi companies required to file any other specific forms?

    Apart from the annual filings, Nidhi companies may be required to file additional forms such as NDH-1 (Return of Statutory Compliance) and DIR-3 KYC (Director's KYC).

Please note that the answers provided here are general in nature, and the specific compliance requirements for a Nidhi company may vary based on individual circumstances and the prevailing laws and regulations. It's advisable to consult with a professional, such as a company secretary or a legal expert, for accurate and detailed guidance on Nidhi company compliance and filings.