Company Law Compliance for Nidhi Companies

Nidhi Company Registration:

A Nidhi Company Registration is a type of company registration which is incorporated as Nidhi with the objective of achieving the following-

• Cultivating the habit of thrift.
• For complying with the rules of Chapter XXVI of Companies Rules, 2014.
• With the lending Power of Nidhi Company, lending funds to its members only for mutual benefits.
• Receiving deposits from the company.
• Savings amongst the members of the Nidhi Company Registration.

Features of Nidhi Company Registration:

1. A Nidhi Company Registration that is incorporated under the Companies Act, 2013 is treated as a Public Company.
2. The minimum number of members in the company must be 200.
3. The minimum paid-up equity share capital in this company must be Rs.500000.
4. The ratio of the net owned funds for depositing cannot be more than 1:20.
5. The Net owned funds must be Rs.10 Lakh and more.
6. Section 62 of the Act is not applicable on the Nidhi Company Registration.

Compliances for Nidhi Company Registration:

1. Receipt of Form MBP-1: As per Section 184(1) of the Act, Form MBP- 1 is to be filed by each and every director in the company in the very first Board of Director meeting. It is filed whenever there is a change in the interest of the directors as filed earlier in the Form MBP-1.
2. Receipt of Form DIR- 8: As per Section 164(2) and Section 143(3) (g) of the Act, a Nidhi Company Registration is required to file Form DIR-8. It is to be filed by each and every director in the company for each financial year for disclosing the non-disqualification for the post of director.
3. E-form ADT-1 for Appointment of Auditor under Section 139 is to be filed within 15 days of the AGM.
4. Filing of Resolution with ROC under Section 117 read with Section 179: The Nidhi Company Registration in India is required to file Form MGT-14 with the Registrar of Companies (ROC) within 30 days of the final approval of the Financial Statement and Director’s Report in the AGM.
5. Section 73 read with Rule 16 for Annual Form DPT-3 and Return of Deposit: Nidhi companies are required Form DPT-3 and return deposits for each financial year on or before 30^th June each year.
6. Form DIR-3 KYC under Rule 12A: It is to be filed for the KYC of all the Directors in the company on or before 30^th September for each financial year.
7. Annual E- Forms Filing Requirements: The following forms are to be filed by the Nidhi Company Registration in India–

• E-form MGT-7 as per Section 92: To be filed for the Annual Returns of the company within 60 days from the date of conclusion of the Annual General Meeting.
• E-form MGT-8 as per Section 92: All the Nidhi Company Registrations having paid-up share capital of Rs.10 Crore and above or turnover of Rs.50 Crore and above must file the form.
• 137, E-form AOC-4 as per Section 137: It is filed to show the Financial Statements of the company by filing the following along with the form-
• Balance Sheet
• Statement of Profit and Loss Account
• Cash flow statement
• Directors’ Report under Section 134 of the act
• Auditors’ Report in this form within 30 days of conclusion of the Annual General Meeting.

8. Sending of Notice of AGM under Section 101: Notice of Annual General Meeting in the Nidhi Company Registration is to be served to the following-

• All Directors
• Members
• Auditors
• Debenture Trustees

9. Under Section 173 and SS-1: The Nidhi Company Registration is required to hold Board Meetings for at least four times in a financial year. Also, it is to be noted that the gap between two consecutive meetings cannot be more than 120 days in total.
10. Under Section 88 and other related provisions: Maintaining the Statutory Registers is mandatory for all the Nidhi Company Registrations. The following registers are to be maintained-

• Register of Director,
• Registers of Director Shareholdings
• Registers of Members
• Registers of Transfer
• Registers of Related Party transaction etc.