Nidhi Company is a company form of business, which is categorized as Non- Banking Financial Company, which does not get licensed under Reserve Bank of India, but is to be incorporated under the Companies Act, 2013. Nidhi Company is a public limited company which has to add the words “Nidhi Limited” in its name.
Basically, Nidhi Company is a company form of business, promoting the habit of thrift and savings amongst its member, lending to the member those who are in need and to follow the compliances applicable by the Central Government. The only objective of Nidhi Company is to promote the habit of thrift and savings amongst its members. A Nidhi Company cannot deal in chit funds, hire-purchase finance, leasing finance, insurance or securities business. A Nidhi Company is strictly prohibited from accepting deposits from or lending funds, to any other person other than members. Further, it cannot issue preference shares to its members.
COMPLIANCES UNDER THE NIDHI COMPANIES:
- A Nidhi company can be incorporated with minimum 7 members from whom at least 3 shall be the directors.
- There shall be a minimum requirement of Rs. 5 Lakh to start a Nidhi Company.
- The words “Nidhi Limited” shall form part of the name.
- A minor, trust or a body corporate cannot be a member of Nidhi Company.
- The company cannot issue preference shares and if issued shall be redeemed as the terms of the issue.
- The company shall maintain its proper books of accounts.
- The company shall maintain statutory register.
- The company shall convene statutory meetings.
CONDITIONS TO BE COMPLIED WITH BY NIDHI COMPANY:
- The ratio of Net-owned funds to that of deposits shall not be more than 1:20.
- There shall be at least 200 members within One Year of its incorporation.
- The net owned funds must be Rs.10 Lakhs or more.
- The Unencumbered Term deposits must be higher than 10% of its outstanding deposits.
CHECKLIST FOR INCORPORATION OF NIDHI COMPANY:
- Purposed Name (s) of Company (Maximum 2 Names can be proposed).
- Adhar card of proposed directors (not having DIN) and promoters.
- PAN card of proposed directors (not having DIN) and promoters.
- Latest copy of Banks Statement/ Telephone bill/ electricity bill of proposed directors (not having DIN) and promoters (not older than 2 months).
- Copy of Voter’s ID Card/Passport/ Driving License of proposed directors (not having DIN) and promoters.
- Mobile No. and Email Id of each Director/ Shareholder.
- Educational Qualification and Occupation of each director and promoter.
- Passport size photograph of proposed directors and promoters.
- Signatures of proposed directors and promoters.
- Declaration from all promoters and directors.
- Latest Copy of Utility Bill of the Reg. Office (Not older Than Two Months).
- Copy of Rent Agreement/Title Proof/Lease Deed/Allotment Letter etc. of the Reg. Office.
- NOC from Owner of the premise for Reg. Office.
- Name of Bank in which Bank Account to be opened (currently out of PNB and ICICI Bank).
- Name of Director to be authorized as Bank Signatory and EPFO.
- Digital Signature of each Shareholders.
FORMS WITH DUE DATES:
- Form NDH-1: Return of statutory companies to be filed within 90 days of the close of the financial year along with fees which is to be certified by PCA/PCS/CMA
- Form NDH-2: Application for extension of time in case company fails to add at least 200 members, failure to maintain net-owned funds to deposits of 1:20. The form must be filed within 90 days of close of the financial year along with the prescribed filing fees.
- Form NDH-3: Half yearly return to be filed with the ROC within 30 days of the conclusion of each half year.
- FORM MGT-14 Within 30 days of passing of Board Resolution for approval of financial statement as per section 179 (3) (g).
- Form AOC-4: Filling of financial statements along with the necessary documents to be filed with the ROC within 30 days of the Annual General Meeting.
- Form MGT-7: Annual return is to be filed with the ROC within 60 days of Annual General Meeting.
- ITR-6: Filing of Income Tax return by 30th September every year.
Post Incorporation Documents:
Filing of Commencement of Business in Form INC-20A for which following documents are required.
- Copy of Bank Statement of the Company showing the entries of Depositing Subscription Amount by the all Subscribers of MOA.
PENALTY FOR NON-COMPLIANCE:
If the company fails to comply with the requirements as mentioned above will attract a penalty. In case of default the company and every officer of the company shall be punishable with fine of Rs. 5000. In case of continuing default, the company will be charged with a fine of Rs. 500 per day.
