Compliances of Nidhi Company

Last Updated On: May 29, 2020, 9:28 p.m.
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Compliances of Nidhi Company

Nidhi is a company which has been incorporated as a Nidhi, with the object of cultivating the habit of thrift and saving amongst its members, receiving deposits from, and lending to, its members only, for their mutual benefit. It is a category of Non-Banking Financial Company (NBFC) that does not require any license from the Reserve Bank of India (RBI). It is a company registered under the Companies Act, 2013.

Compliances after Incorporation of Nidhi Company:

  1. NDH - 1: NDH - 1 is a yearly statement filed with the ROC in terms of Nidhi Rules within 90 days from the closure of Financial Year. If this return is not filed timely, then you will lose the Nidhi Company status from the central government.
  2. NDH - 2: Application to MCA for an extension, if it not able to add 200 members in its first financial year within 30 days of First Financial Year’s closure and Regional Director may after receiving the application give orders within 30 days.
  3. NDH - 3: NDH - 3 is a half-yearly return filed in order to check whether the Nidhi company is working as per the rules or not. This return is to be filed within 30 days from the closure of half year.
  4. NDH - 4: Nidhi company is required to file one-time declaration in form NDH-4 of its status as Nidhi company along with a declaration that it has complied with the minimum number of members i.e. 200 and net owned funds of Rs. 10 Lakhs.
  5. MGT - 7: Nidhi Company has to file Annual Returns to MCA every year through Form MGT – 7 like any other company.
  6. MGT - 14: Nidhi Company is required to file Form MGT-14 for disclosure of Directors' interest, Approval of Financial statements, and Director reports.
  7. AOC - 4: Balance Sheet and Profit & Loss statements are to be submitted every year to MCA through Form AOC – 4 like any other company.
  8. Income Tax Returns: Like any other company, Nidhi companies also have to file their income tax return by 30th September of the subsequent financial year.
  9. GST Registration: GST registration is required, if anyone crosses the threshold limit.

 

NDH -1

  • All Nidhi Companies are required to file Form NDH -1
  • It is filed once every year
  • It shall be filed within 90 days from the closure of the Financial year. For example- F.Y. ending on March 2020, then Form NDH-1 shall need to be filed on or before the end of June 2020
  • Along with prescribed fees as provided in Companies (Registration Offices and Fees) Rules,2014 with the Registrar duly certified by a Company Secretary in whole-time practice or a Chartered Accountant in whole-time practice or a Cost Accountant in whole-time practice

Details required at the time of Filing Form NDH -1

  • Corporate Identity Number (CIN) of Nidhi Company
  • Details of the subscriber to the Memorandum
  • Details of the number of members admitted since the date of incorporation up to the end of the first financial year or second financial year
  • Details of the number of members who have ceased to be members up to the end of the first financial year or second financial year
  • Details of Paid-up equity share capital, Free reserve, Accumulated losses
  • Details of deposits in scheduled commercial banks, post office,
  • Details of outstanding deposits

Attachment needed at the time of Filing Form NDH -1

  • List of all members with PAN and complete residential address
  • Amount of deposit accepted from each member
  • Break-up of unencumbered term deposits in scheduled commercial banks with bank name, branch and account number
  • Break-up of unencumbered term deposits with name and location of Post Office branch
  • Optional attachments, if any

NDH -2

  • If Nidhi company is not able to comply with any of the following-

         a.Members not less than 200

         b.Net owned funds of Rs. 10 Lakhs or more

         c.Unencumbered term deposits of not less than ten percent of the outstanding deposits

         d.Net Owned Funds to deposits of not more than 1:2

  • Then it can apply for extension period from filing Form NDH-1 i.e. statutory compliance statement in Form NDH-2
  • Form NDH-2 is filed within 30 days from the close of the financial year
  • The application shall be made to Regional Director (RD) along with the prescribed fees provided in Companies, (Registration Offices and Fees) Rules,2014
  • Regional Director (RD) may consider the application and pass orders within 30 days from the receipt of the application
  • Regional Director (RD) can grant for extension of a period of 1 year.
  • The form needs to be certified either by a Chartered Accountant in whole-time practice or Company Secretary in whole time practice or Cost Accountant in whole-time practice.

Details required at the time of Filing Form NDH -2

  • Corporate Identity Number (CIN) of Nidhi Company
  • Details of the number of members
  • Details of Ratio of Net Owned Funds to Deposits

Attachment needed at the time of Filing Form NDH -2

  • Board Resolution
  • A detailed application for grant of extension
  • List of all members with PAN and complete residential address
  • Amount of deposit accepted from each member
  • Reasons for and justification for the application

NDH -3

  • It is required to be filed by every Nidhi Company
  • It is a half year return therefore, required to be filed twice a year.
  • It shall be filed within 30 days from the close of the half-year i.e. one on 30th October every year for the half-year ending 30th September and other on 30th April for the half-year ended 31st March.
  • The form needs to be certified either by a Chartered Accountant in whole-time practice or Company Secretary in whole-time practice or Cost Accountant in whole-time practice.

Details required at the time of Filing Form NDH -3

  • Corporate Identity Number (CIN) of Nidhi company
  • Details of all branches of Nidhi: Total number of branches, number of branches opened and closed during the half-year, name, and address of branches
  • Details of members: Total number of members and number of members admitted and ceased to be a member during half-year
  • Details of Deposit: Category wise balance of deposits (i.e. details of Fixed Deposit, Recurring Deposit, Savings Deposits, Cumulative Deposits or any other deposits), amount received during the half-year for all the nature of deposits and amount Repaid during the half-year for all the nature of deposits
  • Details of Loans: Category wise balance of all loans (i.e. Details of loans against immovable property, loans against jewellery, loans against deposits, loans to employees or any other loans), the amount disbursed during the half-year for all the nature of loans, amount Realized during the half-year for all the nature of loans
  • Details of litigation: Cases and amount for the suit filed accounts at the beginning of the half-year, Cases and amount for the suit filed accounts during the half-year and number of cases and the amount for the suit filed accounts disposed of during the half-year
  • Details for calculation of Net Owned Funds to Deposits (Last audited financial statements)
  • The total amount and bank details of unencumbered Term Deposits
  • Total number of banks where deposits have been placed
  • Percentage of unencumbered Term Deposits to the total deposits outstanding
  • Amount of paid-up share capital
  • Amount of paid-up share capital of preference share capital outstanding at the beginning, redeemed during the half-year and outstanding at the end of the half-year

Attachment needed at the time of Filing Form NDH -3

  • List of all members with PAN and complete residential address
  • Amount of deposit accepted from each member
  • Copy of advertisement along with a copy of intimation given to Registrar
  • List of all members who joined during the period with PAN and complete residential address
  • List of all members who ceased during the period with PAN and complete residential address
  • Additional attachment, if any

NDH -4

  • It is a form which is required to be filed one time
  • This form is for-

        1.Application for declaration as Nidhi company

        2.Application for updating of status by Nidhi

  • It needs to be filed by both Nidhi Companies incorporated after or before the commencement of Nidhi (Amendment) Rules, 2019
  • The form needs to be certified either by a Chartered Accountant in whole-time practice or Company Secretary in whole-time practice or Cost Accountant in whole-time practice.

Details required at the time of Filing Form NDH -4

  • Corporate Identity Number (CIN) of Nidhi company
  • Amount of Equity paid-up capital
  • Number of members as on date of application/ updation of status
  • Whether the company complies with Nidhi Rules
  • Details of the number of branches opened by the company with branch place and date of opening
  • The ratio of Net Owned Funds to Deposits

Attachment needed at the time of Filing Form NDH -4

  • Copy of resolution of the board of directors in support of the proposal of the company
  • A certificate signed by two directors regarding the number of members as on date of application (membership should not be less than 200)
  • Certificate from the auditors of the company to the effect that the company has complied with the Nidhi Rules, 2014
  • Copy of notification through which company was declared Nidhi under the Companies Act, 1956 or previous company law (where applicable)
  • Additional attachment, if any
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