Nidhi Company Registration

Nidhi Company Registration

Nidhi Company is a company registered under the Companies Act, 2013, which has a sole objective of cultivating the habit of thrift and savings amongst its members. Nidhi companies are allowed to take deposit from its members and lend to its members only. Therefore, the funds contributed for a Nidhi company are only from its members (shareholders) and used only by the shareholders of the Nidhi Company.
Nidhi company is a class of NBFCs and RBI is empowered to issue directions to them in matters relating to their deposit acceptance activities. However, in recognition of the fact that these Nidhis deal with their shareholder-members only, RBI has exempted the notified Nidhis from the core provisions of the RBI Act and other directions applicable to NBFCs. Therefore, Nidhi Company is an ideal entity to take a deposit from and lend to a specific group of people.

Important compliances of Nidhi Company in India

a.  Pre-incorporation compliances, and
b.  Post-incorporation compliances.

Pre-incorporation compliance of Nidhi Companies

Pre-incorporation, as the name suggests, is the compliance which is mandatory for every Nidhi Company to follow after the registration. There are certain requirements that applicants must fulfil for obtaining Nidhi Company Registration. The requirements are as follows:

• There should be a minimum of 3 Directors and 7 Shareholders for registering your firm as a Nidhi Company, and
• You must have a minimum paid-up share capital of Rs. 5 lakhs.

Post-incorporation compliance of Nidhi Companies

Post-compliances of Nidhi Company further divides into two categories:

• Generic compliances, and
• Annual compliances.

Generic compliance

• Generally, these compliances are the one that every Nidhi Company needs to follow after the incorporation has been registered as Nidhi Company. Under this compliance, you have to ensure the following within a year of Nidhi Company registration.
• A minimum number of members or shareholders should increase to 200 within 1 year of incorporation;
• The net owned fund of the company should be Rs. 10 lakhs or more. (The Net Owned Fund is the sum of paid-up equity share capital and free reserved as reduced by the stored and intangible assets appearing in the last audited balance sheet);
• The unencumbered deposits should be equal to or more than 10% of the outstanding deposits as specified in Rule 14 of Nidhi Rules,2014.
• The ratio of net owned funds to the deposit must not be more than 1:20.

Annual compliance of Nidhi Company in India
Being a Nidhi Company, you should mandatorily comply with three extremely essential compliances of Nidhi Company as described below:

1) Form NDH-1
Is the  Return of Statutory Compliances. If Nidhi Company satisfies all the above conditions, then it should file NDH-1 along with the prescribed fees within 90 days from the closure of the first financial year after incorporation.

2)Form NDH-2
NDH-2 is the application for extension of time. If the Nidhi Company isn’t complying with the above compliance, then it should apply to the regional director in Form NDH-2 within 90 days from the closure of the financial year along with the prescribed fees.

3) Form NDH-3
DH-3 is known as the half-yearly return. You need to file this form with the Registrar of Companies (ROC) within thirty days from the end of each half-year with the prescribed fees as described in Companies Rules (Registration Offices Fees) Rules, 2014 duly certified by a practising company secretary or chartered accountant or cost accountant.

The penalty for Non-Compliance by Nidhi Company
Being a Nidhi Company, if you fail to comply with any provision or compliances, then the company and every officer in Default shall be held punishable with a fine that could extend to Rs. 5000/-. In the case, the contravention continues then the company would be punishable with a penalty that may exceed Rs. 500/- per day till the contravention continues.

Scope of Work

• DSC &  DIN
• Nidhi Company Name Reservation
• MoA & AoA
• Nidhi company registration certificate
• Nidhi Company PAN & TAN
• Nidhi company compliances

Check List

• PAN copy of all the Director/Member
• ADHAR copy of all the Director/Member
• Passport copy of the Director/Member in case of NRI
• Mobile No. & Mail Id of all the Director/Member
• Two passport size photo of all the Director/Member
• Business Address Proof (Rental Agreement & Electricity Bill)