Nidhi Company Compliance
Compliance refers to filing of certain forms to the government. These compliances take into account the operational, the financial and the employ account of the companies. These compliances are needed to be filed by the company on an
- Half yearly
- And annual basis
For a Nidhi company, where the essence of the business entity lies in the dynamic changes of the members of the company, it is extremely important for them to stat compliant.
This compliance entails everything pertaining to the number of members in a financial year to the reporting of financial accounts of the company.
Failure to do so will lead to penalties that you definitely would want to avoid. To that end, you need to get in touch Marginwala to Annual compliance services. We will assist you through the entire matter and also forward the filed-compliance to the ROC.
Required Documents for Nidhi Company Compliance
- Audit reports
- PAN card of the directors
- Identity proof of the directors
- Minutes of AGM
Benefits of Nidhi Company Compliance
It is necessary for your Nidhi Company to file annual compliance and the reasons are the following:
- If you fill the annual compliance, you will have a good legal standing in front of your “to-be” members: The flexibility and the purpose of a Nidhi Company allows it to have a dynamic number of members. However, if you are not compliant, it is difficult to get these members. Being allowing compliant helps you develop trust.
- There are penalties associated with not filing the compliance: Needless to say, compliance isn’t optional. You need to follow through with them in order to make sure that you are not penalized.
- Smooth operations: you need to make sure that your operations are smooth and being annually compliant will make sure that the ROC doesn’t bother you much. This makes sure that you have smooth operation going on.
Nidhi Company Rule & Compliance
There is a Nidhi Rules and Companies Act that entails the compliance as follows:
- NDH-1: It is mandatory for every Nidhi company to make sure that they file the NDH-1 form with the prescribed fees. This form should be duly certified by the Company secretary in practice or a cost accountant. The time to file this form is within 3 months of the closing of the first financial year after the incorporation of its company.
- NDH-2: There are some compliances that you have to adhere to for a Nidhi company:
- Ensuring that there are at least 200 members each financial year
- Maintaining the Net owned funds to deposit a ration of 1:20
If your company is non compliant to any of these, then it is mandatory for you to file the NDH-2 form.
- If the Nidhi Company is not able to follow through with the Rule 5 sub-rule (1) beyond the second financial year, it shall not accept any further deposits from that financial year till it complies with the provisions of that sub-rule.
- Annual return filing: it is mandatory for a Nidhi company to file an annual return. It is the MGT-7 form
- AOC-4 form for the filing the annual financial statements.
- Auditors Appointment in the form ADT-1.
- Annual general meeting
- There is also a half yearly compliance in the Form NDH-3. This is needed to be filed as well.