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September 19, 2018 Registrationwala

What are the Secretarial Compliance and Annual Compliance for a Nidhi Company?

NIDHI Company

What are the Secretarial Compliance and Annual Compliance for a Nidhi Company?

Any sort of business entity needs proper compliance in order to have a proper legal standing. Therefore, if you have any sort of company, be it:

  1. Private limited company
  2. Public Limited Company
  3. Nidhi Company
  4. Or any other sort of company.

There are some legal Nidhi Company Compliance matters that are needed to be adhered to, for without proper compliance, your company is nothing more than a paper boat, and during a rainy day, this boat can sink.

When it comes to Nidhi Company, the compliances are the same. However, there are some minute intricacies that are different. To that end, throughout the course of this blog, you are going to learn about these compliances.

What are compliances? Are these merely the rules that are needed to be followed, or the forms that are needed to be filled that accentuate upon the rules to be followed? Well, the answer is the latter and with this, we can dive straight into those compliances that are needed to be filled on an annual basis.

Important Annual Compliances for a Nidhi company

  1. NDH-1: This form is needed to be filed within 90 days of the closing financial year. However, filling it is not enough; it also needs to be duly certified. The one who certifies it can either be a chartered accountant or a company secretary.  This Annual Nidhi Company Compliance
  2. NDH-2: it is another compliance that is needed to be filled. However, this is needed to be filled if there is a non-compliance regarding the following matters:
    1. There are close to 200 members in a financial year.
    2. The net owned funds to deposit ratio is 1: 20.

Note: if you are not able to maintain close to 200 members in that financial year, or the owned funds to deposit ratio is less than 1:20, then you need to fill the NDH-2 form. The above matters come in Rule 5 Sub-rule (1)

  1.  If the Rule 5 sub-rule (1) is not followed through in the second continuous financial year as well, then the Nidhi Company should not accept any further deposits. Failing to do so is an invitation to stringent penalties.

These are the compliances that you need to adhere to in case the company that you are incorporated a Nidhi company. Now, filing these forms can be somewhat of an ordeal. Therefore, do not be apprehensive about asking for help for the same. Just get in touch with Registrationwala and we can assist you.

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