Nidhi Company 

A Nidhi Company, with the noble objective of cultivating thrift and savings among its members, must fulfil statutory ROC annual compliance, as mandated by Indian regulations. This compliance involves filing returns in Form NDH-1 with the Registrar within 90 days from the end of the first financial year post-incorporation. Additionally, Nidhi Companies are required to submit half-yearly ROC annual compliance reports in Form NDH-3 within 30 days from the conclusion of each half-year.

ROC Annual Compliance for Nidhi Company

Nidhi Companies in India are subject to specific compliance requirements within their first year, as outlined below:

1. Membership and Fund Requirements:

• • Minimum members must not be less than 200.
  • Minimum net owned funds should be at least Rs. 10,00,000.
  • The ratio between net owned funds and deposits must not exceed 1:20.
  • Nobody corporate or trust should be admitted as a member.

Key Compliance Steps

1. Form NDH-1 Filing (Annual Compliance):

• • Within 90 days from the end of the first financial year after incorporation, a Nidhi Company must file its annual ITR return in Form ‘NDH-1’.
  • This filing should be duly certified by the company secretary or a practising Chartered Accountant (CA).

1. Form NDH-2 for Extension:

• • If a Nidhi Company fails to comply with the prescribed conditions, it can apply to the regional director using Form NDH-2.
  • This application should be submitted within 30 days from the close of the first financial year.
  • The regional director may consider the application and issue orders within 30 days of receipt.

1. Form NDH-3 Filing (Half-Yearly Compliance):

• • A Nidhi Company must file a half-yearly return with the Registrar in Form NDH-3.
  • This filing is due within 30 days from the conclusion of each half-year and should be certified by the company secretary in practice.

Nidhi Company’s Restrictions

As per Rule 6 of Nidhi Rules, a Nidhi-incorporated company must not engage in the following activities:

• Continuing the business of chit fund, insurance, hire-purchase finance, or acquisition of securities by any corporate body.
• Issuing debentures or any other debt by any name or in any form.
• Maintaining current accounts with its members.
• Lending or depositing money with other members outside the Nidhi.
• Making partnership arrangements in its borrowing or lending.
• Offering brokerage or incentives for mobilizing deposits from members.
• Engaging in any business other than borrowing or lending.
• Acquiring other companies through the purchase of securities.

These ROC annual compliances are vital for Nidhi Companies to ensure their legal standing and adhere to regulatory requirements. By following these guidelines, Nidhi Companies can navigate the compliance landscape effectively.