CHECKLIST OF NIDHI COMPANY COMPLIANCES
A Nidhi Company is one of the categories of Non-Banking Financial Company (NBFC) that does not require license from Reserve Bank of India (RBI) to commence its operations. Nidhi Company is managed under the supervision of Ministry of Corporate Affairs (MCA) as per Section 406 of the Companies Act, 2013. The primary business objective of Nidhi Company is borrowing and lending money amongst its members.
Like any other form of entity, Nidhi Company is also required to file multiple compliances which are prescribed as per Section 406 of the Companies Act, 2013 and Nidhi Companies Rules, 2014.
Why the compliances of Nidhi Company are important?
There are various reasons due to which compliances of Nidhi Company are required:
Compliances of a Nidhi Company
We can divide the compliances of a Nidhi Company into three parts:
Pre-Incorporation Compliances: These compliances has to be followed to get registration of Nidhi Company.
Post Incorporation Compliance of Nidhi Company
Such compliances needs to take place once your Nidhi Company is incorporated. We have divided the post incorporation compliance into two categories:
1. General Compliances:
2. Annual Compliances
It is compulsory for a Nidhi Company to follow Annual Compliances as mentioned in the tabular format:
|Form No||Compliance||Due Date|
|NDH-1||This form is used to file Return of Statutory compliance which includes details regarding company’s members, loans, deposits, reserves etc. for the complete financial year||Within 90 days from the closure of the first financial year after incorporation|
|NDH-2||This form is used for filing application for extension of time.||It must be filed with the Regional Director within 90 days of the closure of financial year.|
|NDH-3||This form is used for filing Half yearly return with the Registrar of Companies (ROC)||Within 30 days from the end of each half year along with prescribed fees. It must be duly certified by a practising chartered account, or company secretary or cost accountant|
|AOC-4||Filing of financial statements and other related documents with the ROC||Within 30 days of the conclusion of the Annual General Meeting|
|MGT-7||Annual Return||Within 60 days of the conclusion of the Annual General Meeting|
|ITR-6||Return of Income Tax||
By 30th September of every year
Event Based Compliances of Nidhi Company:
These compliances are required to be filed only once at the time of the registration of the Nidhi Company. Such compliances denote any changes in the company which are to be done. However, they are not required to file repeatedly.
Penalties for Non-Compliances:
Any non-compliance will attract unwanted penalties and the company and its officers will be fined upto an amount of Rs. 5000
In case the violation continues, further fine of Rs. 500 every day will be applicable on the company.
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