Nidhi Company Compliance
Expert Guidance to Stay Legally Compliant
Ensure your Nidhi Company operates smoothly with Tax Pal Solutions. We provide end-to-end assistance to meet statutory requirements, file timely documents, and maintain compliance.
Key Benefits:
- Expert compliance guidance
- Transparent pricing
- Timely filings and reminders
- Comprehensive document preparation
- Statutory register maintenance and audit assistance
What is a Nidhi Company?
A Nidhi Company is a type of Non-Banking Financial Company (NBFC) registered under the Companies Act, 2013. It primarily:
- Accepts deposits from its members
- Provides loans exclusively to its members
- Does not operate with outsiders
The term “Nidhi” means treasure, reflecting its purpose of helping members save and grow their funds.
Objective: Encourage savings habits and provide affordable loans to members during emergencies. Popular in South India, Nidhi Companies strengthen financial support within trusted communities.
Pre-Incorporation Compliance
Before registering a Nidhi Company:
- Company Structure: Public limited company with minimum 3 directors & 7 members
- Directors & Members: Directors must have DIN; 3 directors must be Indian residents
- Company Name: Must end with “Nidhi Limited” and be unique
- Minimum Capital: Paid-up share capital ≥ ₹10 lakh
- Regulatory Compliance: Nidhi Companies follow Nidhi Rules, 2014 and amendments, exempt from RBI approval
First-Year Compliance After Incorporation
| Compliance Requirement | Details |
|---|---|
| Minimum Members | At least 200 members within first year |
| Net Owned Fund (NOF) | Minimum ₹20 lakh |
| NOF to Deposit Ratio | At least 1:20 (₹1 NOF : ₹20 deposits) |
| Unencumbered Term Deposits | ≥10% of total deposits in a scheduled bank |
Maintaining these ensures trust, legality, and protection against penalties.
Annual and Periodic Compliance Calendar
| Compliance Task | Form | Due Date | Frequency |
|---|---|---|---|
| Annual Return of Statutory Compliances | NDH-1 | 90 days after financial year ends | Yearly |
| Half-Yearly Return | NDH-3 | 30 days after half-year (Sept 30 / Mar 31) | Half-Yearly |
| Financial Statements | AOC-4 | 30 days of AGM | Yearly |
| Annual Return | MGT-7 | 60 days of AGM | Yearly |
| Director KYC | DIR-3 KYC | September 30 | Yearly |
| Income Tax Return | ITR-6 | September 30 | Yearly |
Event-Based Compliances
Required when specific changes occur:
- Company name or registered office changes
- Appointment, resignation, or removal of directors/auditors
- Increase in authorized share capital
- Transfer of shares or change in company objectives
- Appointment of key managerial personnel
All must be filed with ROC using MCA forms (DIR-12, MGT-14, INC-22, etc.) within 15–30 days of the event.
Penalties for Non-Compliance
- ₹5,000 fine per instance of non-compliance
- ₹500 per day for continued violation
- Legal action against defaulting officers under Section 406 of Companies Act
Timely compliance protects your company and builds member trust.
Nidhi (Amendment) Rules, 2022
| Rule | Key Points |
|---|---|
| Capital & NOF | Minimum paid-up capital ₹10 lakh, NOF ₹20 lakh |
| Form NDH-4 | Declaration of new Nidhi Companies within 120 days; approval in 45 days |
| Fit & Proper Person | Promoters/directors must have good character, no criminal record, insolvency, or bans |
| Loan Restrictions | Loans only to members; subject to NOF/deposit limits |
| Branches | Max 3 branches outside main district without approval |
| Dividend | Cannot exceed 25% of profits per year |
Nidhi Company Compliance Fees
Government Fees: Varies based on share capital; applies to NDH-1, NDH-3, and other MCA filings.
Professional Fees: ₹10,000 – ₹25,000 per year depending on company size and filings.
Expert assistance ensures deadlines are never missed and compliance is maintained accurately.
Certification
