Nidhi Company Compliance
Nidhi Companies in India are regulated by the Ministry of Corporate Affairs (MCA). Therefore, the provisions of the Companies Act, 2013, and the rules made thereunder, are applicable to Nidhi Companies. For the purpose of understanding, we can divide compliances for a Nidhi Company
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Nidhi Company Compliance
Nidhi Company, formed under Section 406 of the Companies Act, 2013, is a type of finance company that is formed for the mutual benefit of its members. It accepts deposits from its members and grants loans to them for different purposes. Nidhi companies must fulfill certain compliance requirements prescribed under the Companies Act, 2013, and Nidhi Rules, 2014. This article presents the complete compliances checklist for Nidhi Company.
One-Time Compliances
A Nidhi Company has to fulfill the following requirements only once, known as one-time compliances.
Pre-Incorporation Requirements
The following are the requirements for forming a Nidhi Company, that shall be fulfilled before incorporation –
Post-Incorporation Requirements
For this purpose, Nidhi Companies are divided into the following two categories based on their date of incorporation –
Companies Incorporated Before Commencement of Nidhi (Amendment) Rules, 2022
Nidhi Companies that are incorporated before the commencement of Nidhi (Amendment) Rules, 2022 i.e., 19th April 2022, must comply with the following requirements within one year of their incorporation –
- It shall have at least 200 members.
- The Net Owned Funds of the company shall be equal to Rs. 10 lakhs or more
- Unencumbered term deposits shall be a minimum of 10% of the outstanding deposits (as of the last working day of the 2nd preceding month) of the company.
- The ratio of Net Owned Funds to Deposits cannot be more than 1: 20.
Related Business Registrations
In addition to registration or incorporation, a business may require other registrations depending on the business activity undertaken. Talk to an Advisor to find out registrations your business may require post registration.
