Nidhi Company Compliance In India
Nidhi Company Compliance in India
Nidhi Companies, governed by the Ministry of Corporate Affairs (MCA), are a type of Non-Banking Financial Company (NBFC) dedicated to cultivating the habit of thrift and savings among its members. While these companies enjoy several benefits, they must strictly follow various compliance requirements laid out under the Companies Act, 2013. Ensuring timely compliance not only protects the company from penalties but also builds trust with members and regulators.
Key Nidhi Company Compliances
Annual Return Filing (MGT-7) Every Nidhi Company is required to file its Annual Return in Form MGT-7 within 60 days from the conclusion of the Annual General Meeting (AGM). This return captures essential details such as the company’s shareholder structure, directors, and changes during the financial year.
Financial Statements (AOC-4) Filing of the financial statements, including the balance sheet and profit & loss account, is mandatory through Form AOC-4. The audited financial statements must be filed within 30 days of the AGM to maintain transparency and ensure accountability.
Nidhi Compliance (NDH-1 & NDH-2) Form NDH-1 must be filed within 90 days from the close of the financial year to declare the number of members and net-owned funds. If the company fails to meet the required criteria for membership or funds, Form NDH-2 must be submitted for an extension to comply.
Income Tax Return Filing Like other companies, Nidhi Companies must file their Income Tax Returns annually. This filing is mandatory by September 30th for each financial year to comply with the Income Tax Act.
Directors’ KYC (DIR-3 KYC) Every director of a Nidhi Company must complete their Know Your Customer (KYC) process annually. Failure to file DIR-3 KYC could lead to the deactivation of the Director Identification Number (DIN).
Benefits of Staying Compliant
- Legal Protection: Regular compliance keeps the company safe from legal penalties and ensures its smooth operation under the law.
- Reputation Building: Adherence to compliance instills confidence among members, ensuring their continued trust in the company.
- Operational Continuity: Compliance with MCA guidelines ensures the company can continue operating without legal obstacles or restrictions.
Consequences of Non-Compliance
Non-compliance with Nidhi Company regulations can lead to severe consequences, including financial penalties, loss of Nidhi status, and legal action. It is essential to ensure timely and accurate submission of all required forms and returns.
Why Choose Us?
Our experienced team provides end-to-end Nidhi Company compliance services, ensuring that all filings are completed on time and meet legal standards. We assist with:
- Preparation and filing of Annual Returns.
- Timely submission of financial statements.
- Filing NDH-1 and NDH-2 to ensure adherence to Nidhi regulations.
- Completing directors’ KYC requirements and other legal formalities.
Stay Compliant with Ease
Staying compliant with Nidhi Company regulations is critical for the long-term success and legal standing of your business. Our expert compliance team ensures a smooth and hassle-free experience, allowing you to focus on growing your Nidhi Company while we handle all your compliance needs.
Why The Bapuji?
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