Nidhi Company is categorised under the Non-Banking Financial Company or NBFC, which does not involve the Reserve Bank of India (RBI) license. Section 406 of the Companies Act, 2013 acknowledges a Nidhi Company and is managed and controlled by the Ministry of Corporate Affairs.
Post Incorporation Requirements of a Nidhi Company
Within one year of incorporation, a Nidhi company must satisfy the following conditions:
- The minimum number of members must be 200.
- The Net owned funds must be Rs. 10 lakhs. (Net owned funds is the aggregate of paid-up capital and free reserves reduced by the accumulated and intangible assets as appearing in the last balance sheet.)
- The net owned funds and the deposits shall be in a ratio not exceeding 1: 20 that is Net Owned Funds: Deposits = 1:20.
- Unencumbered term deposits should be not less than 10 % of the outstanding deposits as specified in Rule 14 of Nidhi Rules 2014.
- Maintenance of Books of Accounts.
- Maintain the statutory Registers.
- Convene Statutory Meetings.
Form NDH-1 : Return of Statutory Compliance. This form contains all the details regarding members, deposits, loans, reserves etc. for the full financial year. e-Form GNL-2 for submission of the documents with the Registrar.
Due date : Within 90 days from the close of financial year along with fees. It must be duly certified by PCA/PCS/CMA.
NDH 2 : Application for Extension of Time. This form is filled in case :
- The company fails to add at least 200 members within one year of incorporation.
- Failure to maintain the Net owned Fund to deposit ratio of 1:20
Due date : NDH-2 must be filed with the Regional Director within 90 days from the closure of financial year along with the prescribed fees.
NDH -3 Half Yearly return : Details regarding members, loans, deposits, for the said period. It contains details of total members admitted in the half-year, total members who ceased to be members as on date
Due date : Within 30 days from the conclusion of each half year
NDH 4 : For filing financial documents and other supporting documents to the Registrar of Companies.
Due date : Within 60 days after the expiry of 1 year from the date of its incorporation
AOC 4 :For filing financial documents and other supporting documents to the Registrar of Companies.
Due date : Within 30 days of the annual general meeting
MGT 7 : Annual return along with a list of company members
Due date : Within 60 days of the Annual General Meeting
IMPORTANT : A Nidhi company that has not made profits continuously in the three preceding financial years, shall not make any fresh loans exceeding 50% of the maximum amounts of loans specified above. A member shall not be eligible for any loan if he has defaulted on any prior loan repayment.