Nidhi Company Compliance: Rules, Restrictions & ROC Filings
Stay updated on the latest compliance mandates under the Nidhi Rules, 2014 & 2022 Amendment. Understand key filing requirements, prohibited activities, and post-incorporation obligations to maintain legal standing.
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Overview of Nidhi Company
A Nidhi Company is governed by Section 406 of the Companies Act, 2013, along with the Nidhi Rules, 2014, and the Nidhi (Amendment) Rules, 2022. These companies operate in the non-banking financial sector and are primarily engaged in accepting deposits from and providing loans to their members. As with any other registered entity, a Nidhi Company is required to comply with annual tax and regulatory filings as mandated by law. Though categorized as a Public Limited Company, a Nidhi Company must adhere strictly to prescribed compliance norms to avoid legal consequences.
Member-Driven Lending
Focused financial services limited to members only, reducing risk exposure.
Simple Incorporation
Registered as a Public Limited Company with relaxed RBI oversight.
Regulated Operations
Operational boundaries clearly defined under the Nidhi Rules, ensuring compliance.
Cost-Effective Financing
Allows members access to low-interest loans and savings schemes.
Listicles
Post-Incorporation Compliances for Nidhi Company
- A minimum of 200 members within 1 year.
- Net Owned Funds (NOF) of at least ₹20 lakhs.
- NOF-to-deposit ratio must not exceed 1:20.
- At least 10% of deposits must be in unencumbered term deposits as per Rule 14.
Prohibited Activities under Rule 6
- Leasing, hire purchase, and chit fund businesses.
- Purchasing securities of other corporations.
- Issuing preference shares, debentures, or debt instruments.
- Maintaining current accounts for members.
- Accepting or lending funds to non-members or body corporates.
- Operating partnerships for financial activities.
- Advertising for deposits in any form.
- Pledging member assets or paying commissions to mobilize deposits or disburse loans.
- Engaging in unrelated businesses without Regional Director's approval.
Types of Compliance
- Annual Compliances: Routine filings like financials and returns.
- Event-Based Compliances: Triggered by operational changes like director or capital structure.
Key ROC Filings Under Nidhi Rules
- NDH-1: Return of statutory compliance within 90 days of financial year-end (via GNL-2).
- NDH-2: Extension application for deposit/member requirements within 30 days of FY end (via RD-1).
- NDH-3: Half-yearly return on members, deposits, and loans within 30 days (via GNL-2).
- NDH-4: Application for Nidhi status within 60 days after 1 year of incorporation or as per rule.
- NDH-5: Branch closure notice within 30 days, published in vernacular paper.
Other Key Forms
- AOC-4: File financial statements within 30 days of AGM.
- MGT-7: File annual return within 60 days of AGM.
Why Choose DoStartup for Nidhi Company Compliance?
Complete assistance in all post-incorporation filings and regulatory compliance.
Expert advice on meeting NOF and member thresholds to maintain legal status.
Support for timely NDH-1, NDH-2, NDH-3, and NDH-4 filing.
Experienced team for ROC filings, exemptions, and director approvals.
Streamlined document management and deadline tracking system.