NIDHI COMPANY

Nidhi Company is a company form of business, which is categorised as Non- Banking Financial Company, which does not get licensed under Reserve Bank of India, but is to be incorporated under the Companies Act, 2013. Nidhi Company is a public limited company which has to add the words “Nidhi Limited” in its name.

Basically Nidhi Company is a company form of business, promoting the habit of thrift and savings amongst its member, lending to the member those who are in need and to follow the compliances applicable by the Central Government. The only objective of Nidhi Company is to promote the habit of thrift and savings amongst its members.

 

Compliances under the Nidhi Companies:

  • A Nidhi company can be incorporated with minimum 7 members from whom at least 3 shall be the directors.
  • There shall be a minimum requirement of Rs. 5 Lakh to start a Nidhi Company.
  • The words “Nidhi Limited” shall form part of the name.
  •  A minor, trust or a body corporate cannot be a member of Nidhi Company.
  • The company cannot issue preference shares and if issued shall be redeemed as the terms of the issue.
  • The company shall maintain its proper books of accounts.
  • The company shall maintain statutory register.
  • The company shall convene statutory meetings.

 

Conditions to be complied with by Nidhi Company:

  • The ratio of Net-owned to that of deposits shall not be more than 1:20.
  •  There shall be at least 200 members in a Nidhi Company.
  • The net owned funds must be 10 Lakhs or more.
  • The deposits should not be less than 10% of the outstanding deposits.

 

Forms with due dates:

  • Form NDH-1:  Return of statutory companies to be filed within 90 days of the close of the financial year along with fees which is to be certified by PCA/PCS/CMA
  • Form NDH-2: Application for extension of time in case company fails to add at least 200 members, failure to maintain net-owned funds to deposits of 1:20. The form must be filed within 90 days of close of the financial year along with the prescribed filing fees.
  • Form NDH-3: Half yearly return to be filed with the ROC within 30 days of the conclusion of each half year. 
  • Form AOC-4: Filling of financial statements along with the necessary documents to be filed with the ROC within 30 days of the Annual General Meeting.
  • Form MGT-7: Annual return is to be filed with the ROC within 60 days of Annual General Meeting.
  • ITR-6:  Filing of Income Tax return by 30th September every year.

 

Penalty for Non-compliance:

If the company fails to comply with the requirements as mentioned above will attract a penalty. In case of default the company and every officer of the company shall be punishable with fine of Rs. 5000. In case of continuing default, the company will be charged with a fine of Rs. 500 per day.

Comments

  1. Tax Consulting FirmAugust 7, 2021 at 6:25 PM

    Great Article. Thank you for providing such a unique and valuable information to your readers. I really appreciate your work.If you require about Tax consultants in India | NRI Tax Return Filing in India click on it.

    ReplyDelete
    Replies
    1. DEEPIKAAugust 12, 2021 at 11:08 PM

      Thank you for liking the article!! Will try to provide you more information through this blog.

      Delete

Post a Comment

Popular posts from this blog

Introduction to Corporate Insolvency Resolution Process (CIRP)

  INTRODUCTION: The Insolvency and Backruptcy Code, 2016 was introduced to improve the relationship between Creditors and Debtors. The IB Code, 2016 was first passed by Lok Sabha on 05 th May, 2016 and by Rajya Sabha on 11 th May, 2016. Further, the President of India, gave its assent on IB Code, 2016 in the month of December, 2016. However, on 01 st June, 2016, Hon’ble National Company Law Tribunal (NCLT) and its appellate Tribunal was set up by the Government under the Companies Act, 2013 to adjudicate the matters of Insolvency of Corporates and Limited Liability Partnerships. Further, resolution of disputes of individuals and Partnership Firms comes under the jurisdiction of Debt Recovery Tribunal commonly known as DRT.   NEED FOR INTRODUCTION OF INSOLVENCY AND BANKRUPTCY CODE, 2016 Now, the question which arises in our mind is, what is the need to introduce Insolvency and Bankruptcy Code, 2016 and set up separate bench for resolution of financial disputes when c...
Read more

START-UP INDIA SCHEME

The Government of India had promulgated The Start-up India Scheme in the year 2016 with the aim to develop an ecosystem to nurture the innovation and bring development across the nation. The reason behind pro mulgation of this sche me is to shift the vision of the youth of our nation from job seekers to job providers. The youth of the nation, when given various benefits to start their own entrepreneurship, will focus more on innovation which in turn will generate more employment opportunities for others and hence more revenue to the economy.       ELIGIBILITY FOR REGISTRATION UNDER START-UP SCHEME In order to be eligible under the start-up scheme, one needs to fulfill the following eligibility requirements for registration under start-up scheme:  1.      Which has not yet completed 10 years since the date of its incorporation.  2.      Is a Private Limited Company/ A Partnership Firm/ Limited Liability Partnership.  3...
Read more

AMENDED POINTERS FOR ANNUAL FILING FOR YEAR ENDED 2021

Hello Readers! We all are aware that Ministry of Corporate Affairs (MCA), always comes up with various amendments in various provisions of Companies Act. Now the Ministry has amended Companies (Management and Administration), Rules, 2014. As per the recent amendment followed by the Union Budget, 2021, there has been changes in the definition of Small Companies under Section 2(85) of the Companies Act, 2013. Further, there has been changes in the definition and threshold limits of One Person Company. Let’s discuss the amendments one-by-one.   As per Companies Act, 2013, “Small Company” means a company, other than a public company, having- 1. Paid-up share capital of which does not exceed Rs. 50 Lakhs or such higher amount as may be prescribed which shall not be more than Rs. 10 Crores; and 2. Turnover as per the profit and loss account which does not exceed Rs. 2 Crores or such higher amount as may be prescribed which shall not be more than Rs. 100 Crores. Provided that not...
Read more