Running a Nidhi Company comes with its own set of legal responsibilities. If you’re managing one, you’re likely already aware of how crucial it is to stay compliant with the regulations laid down by the Ministry of Corporate Affairs (MCA). One missed deadline can lead to penalties or even disqualification. So, here’s a simplified guide to help you understand your Nidhi Company annual compliance requirements.

What Is a Nidhi Company?

A Nidhi Company is a type of non-banking financial company (NBFC) in India. Its primary goal is to promote savings among its members and offer loans only to them. While it doesn’t require RBI approval to operate, it is still tightly regulated under the Companies Act, 2013 and Nidhi Rules, 2014.

Why Is Annual Compliance Important?

Many business owners overlook the importance of timely compliance, assuming it’s just another formality. But annual compliance ensures your company maintains good legal standing, avoids hefty penalties, and builds trust with both existing and potential members.

Key Annual Compliance Requirements

Here are some of the main filings and forms a Nidhi Company must submit each year:

1. Form NDH-1

This form includes all financial and operational data for the previous financial year. It must be filed within 90 days from the end of the financial year.

2. Form NDH-2 (If Applicable)

In case the company fails to meet the minimum membership or net owned funds criteria, an extension request must be filed using NDH-2.

3. Form NDH-3

This is a half-yearly return that includes details of the members, deposits, loans, and reserves. It must be filed within 30 days from the end of each half-year.

4. Form AOC-4

This involves the filing of the financial statements and must be submitted within 30 days from the Annual General Meeting (AGM).

5. Form MGT-7

This is an annual return that covers shareholding patterns, changes in directors, and other major updates. It should be filed within 60 days from the AGM.

Additional Annual Requirements

• Conduct at least one Annual General Meeting every financial year.

• Maintain proper registers for members, loans, and investments.

• Get your financial statements audited by a Chartered Accountant.

Penalties for Non-Compliance

Failing to meet annual compliance requirements may result in monetary fines, disqualification of directors, or even the company being declared inactive. In severe cases, regulatory action from the MCA may also be initiated.

How to Simplify Compliance

Many Nidhi Companies prefer to hire professional consultants to manage their compliance calendar. This ensures timely submissions and peace of mind, especially when managing multiple members and financial data.

FAQ

Q1. Is it mandatory for a Nidhi Company to file NDH-3?
Yes, NDH-3 is a half-yearly return that must be filed by all Nidhi Companies.

Q2. What happens if NDH-1 is not filed?
Non-filing can lead to penalties and may affect your company’s legal standing with the MCA.

Q3. Do I need an auditor for annual filing?
Yes, your financial statements must be audited by a certified Chartered Accountant.

Q4. Can a Nidhi Company take deposits from the public?
No, it can only accept deposits from its registered members.

Q5. How often should the AGM be held?
An AGM must be held once every financial year within six months from the end of that year.