According to Nidhi Company Rules 2014 & Nidhi Company Rules 2022 (recently enforced) & Section 406 of the Companies Act, 2013 prescribe some major compliances for a Nidhi Company.
Nidhi company is similar to an NBFC. The object of the Nidhi company is lending and borrowing between its member for mutual benefit. This company needs to file annual compliance to the ROC. This company follows Nidhi Rules 2022 and the companies act 2013,
• The starting of Nidhi company The minimum paid-up capital requirement is Rs 10 Lakhs.
• A minimum of seven members are required to start a Nidhi company.
• This type must have a public limited company.
• The part of companies' names will contain the word "Nidhi Limited."
• Trust, corporate bodies, and minors cannot be members of Nidhi limited.
• The interest rate on deposits offered by the Nidhi company is a maximum of 12% annually.
• This company is not allowed to issue preference shares.
• The main objective is cultivating the habit of thrift and savings amongst its members.
Under one year in incorporation, Nidhi company will satisfy the below conditions.
• The Number of members will be increased to 200 (Amended in the year 2022) (within four months from the date of incorporation).
• The net owned funds must be Rs 20 Lakh (Amended in the year 2022) (within four months from the date of incorporation)
• The net owned funds to deposit ratio will not exceed 1/20.
• As per Nidhi rules 2014, the Unencumbered term deposits would be at least 10% of outstanding deposits.
• The Nidhi company must maintain books of accounts and conduct statutory meetings.
Annual compliance of Nidhi company
• Return of statutory compliance (Form NDH-1)
• Application for Extension of time (Form NDH-2)
• Half-yearly return (Form NDH-3)
• Declaration (Form NDH-4)
• Filing of annual accounts (Form AOC-4)
• Income tax Return (ITR-6)
• For yearly return (Form MGT-7).
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