Legal Compliances to be followed by a NIDHI COMPANY

July 13, 2020

PRE-INCORPORATION COMPLIANCE:

1. MEMBERS: Minimum: 7 Members

2. Directors: Out of the above 7 at-least 3 should be Directors

3. Minimum Paid up equity Share Capital: Rs. 5 Lakhs

4. No Preference Shares are allowed to be issued. If an existing company has preference shares and wants to get Nidhi status, it needs to redeem Preference shares.

5. Nidhi company have the words "NIDHI LTD".

POST INCORPORATION COMPLIANCE:

1. Increase number of members to Minimum of 200 within 1 Year from the date of incorporation

2. Net Owned Fund should be minimum of Rs 10 Lakhs. Where Net Owned Funds = Paid up equity share capital + Reserve and surplus – Intangible Assets- Accumulated Losses

3. Unencumbered Deposit should be at-least 10% of Outstanding Deposit

4. Appointment of Chartered Accountant within 30 days of incorporation

5. Net owned Fund to Deposit Ratio of max 1:20

Recurring Compliance:

FORM NO	COMPLIANCE	DUE DATE
NDH-1	Return of Statutory Compliance. Deatails of - Member -Deposits -Loans -Reserves For full F.Y	90 days of closing of F.Y. Need Professional Certification
NDH-2	-IF failed to add 200 members within 1 Year of incorporation. - NOF to Deposit ratio of 1:20 not complied.	To be filed with Regional Director within 90 days from closure of F.Y with fees
NDH-3	Half Yearly Return with ROC	Within 30 days from conclusion of F.Y
NDH-4(Newly inserted by NIDHI RULES,2019)	Main detail here is of Number of members. Members only those people will be considered who have PAS-3 return filed.	New Company-60 DAYS of expiry of 1 Year from the date of incorporation Existing Company: Later of: 1- year from the date of incorporation 6 Months from commencement of NIDHI RULES,2019
AOC-4	Financial Documents and other supporting documents to the ROC	Within 30 days of AGM
MGT-7	Annual Return	60 days of AGM
ITR-6	Income tax Return	BY 30th September

Penalty: IF NIDHI Company fails to comply it need to pay a Fine upto Rs. 5,000/-

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