To run a Nidhi Company smoothly, you must follow some important rules before and after starting the company.
Pre-Incorporation Compliances
Before registering the company, you must:
- Company Structure: Form a public limited corporation with a minimum of 3 directors and 7 members.
- Members and Directors: Directors must have a Director Identification Number (DIN), and at least 3 directors should be Indian residents.
- Company Name: The name must end with “Nidhi Limited” and be unique.
- Minimum Capital: The company must have at least ₹10 lakh as paid-up share capital.
Nidhi Companies do not require approval from the Reserve Bank of India (RBI) to operate, as they are exempt under the RBI Act, 1934. However, they must strictly comply with the Nidhi Rules, 2014, and any amendments made, including those introduced in 2022.
First-Year Compliance After Incorporation
After registration, these are the key rules to follow in the first year:
- Minimum Members: Within a year, the firm must have 200 members at the very least.
- Net Owned Fund (NOF): Maintain a minimum NOF of ₹20 lakh after one year.
- NOF to Deposit Ratio: The ratio of NOF to total deposits should be at least 1:20 (i.e., for every ₹1 of NOF, max ₹20 in deposits allowed).
- Unencumbered Term Deposits: Keep at least 10% of total deposits as unencumbered term deposits in a scheduled bank.
Following these rules ensures the Nidhi Company stays safe and trustworthy. Missing these compliances can lead to penalties or loss of registration.
Annual and Periodic Yearly Checklist: Nidhi Company Compliance Calendar
For any Nidhi Company to be safe and legal, it must adhere to yearly regulations. These are called annual and periodic compliances. Here are the main forms and tasks:
| Compliance Task |
Form |
Due Date |
Frequency |
| Annual Return of Statutory Compliances |
NDH-1 |
Within 90 days after the financial year ends |
Yearly |
| Half-Yearly Return |
NDH-3 |
Within 30 days after each half-year (Sept 30 / Mar 31) |
Half-Yearly |
| Financial Statements |
AOC-4 |
Within 30 days of Annual General Meeting (AGM) |
Yearly |
| Annual Return |
MGT-7 |
Within 60 days of AGM |
Yearly |
| Director KYC |
DIR-3 KYC |
By September 30 |
Yearly |
| Income Tax Return |
ITR-6 |
By September 30 |
Yearly |
Note: The due date for the Income Tax Return (ITR) may vary depending on whether the company requires an audit. Most Nidhi Companies do undergo audits, so it's important to stay aware of the specific deadlines.
Event-Based Compliances for Nidhi Company
These compliances are required only when specific changes occur in the company. They are not annual, but must still be filed on time to keep the company's records up to date. Examples include:
- Change in company name or registered office address.
- Appointment, resignation, or removal of directors or auditors.
- Increase in authorized share capital.
- Transfer of shares.
- Change in company objectives.
- Appointment of key managerial personnel.
All event-based changes must be filed with the Registrar of Companies (ROC) using the appropriate MCA forms (such as DIR-12, MGT-14, INC-22, etc.) within 15 to 30 days, depending on the nature of the event.
