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Nidhi company is regulated under Section 406 of the Companies Act, 2013. It promotes and also cultivates the habit of saving among its members and provides them with financial assistance in terms of loans. The object of the Nidhi company shall be receiving deposits from and lending to its members only for their mutual benefits. Any other object in its MOA shall be void.

The Minimum paid up equity share capital ( not preference share capital) requirement for Nidhi company registration is Rs. 5 lacs, and total 7 members are required for registration out of these 7 members , 3 members must be directors of the the Nidhi company.
 

Benefits - Nidhi Company Registration

• Low capital requirement resulting in cost effective registration.
• Easy to do borrowings from or lend money to the group members
• Less Annual Compliances as compare to NBFCs.
• There are many exemptions and privileges under the Companies Act, 2013
• Very less intervention of RBI which results in easy manageability .
• Governed by only Nidhi company Rules.
• The rate of interest charged on any loan given by Nidhi companies should not exceed 7.50 per cent above the highest rate of interest which is offered on deposits accepted by Nidhi companies. It means difference should not exceed 7.5%.

Following Points must be considered after Nidhi Company incorporation.

• The  Net-owned Fund of the Nidhi Company should become Rs. 10 lacs or more.
• Within a period of 1 year , the number of members should increase to at least 200.
• The ratio of Net-owned Fund  to the deposit should not  exceed 1:20.
• Nidhi Rules, 2014 provides that, the unencumbered deposits shouldn’t be less than 10% of the outstanding deposits.

COMPLIANCE FOR NIDHI COMPANY AFTER INCORPORATION

NDH-1: Return of Statutory Compliances (Yearly)

Nidhi shall file a return of statutory compliances in Form NDH–1 within 90 days from the closure of the financial year with the Registrar duly certified by CA/CS in practice. (ROC Form NDH-1 Require to File)

NDH-2: Apply To The Regional Director For Extension Of Time

If the company is not complying with the minimum member criteria and ratio of Net Owned Funds to deposits, in that case company shall within 90 days from the close of the first financial year, apply to the Regional Director in Form NDH -2 for extension of time and the Regional Director may consider the application and pass orders within 30 days of the receipt of the application. (ROC Form NDH-2 Require to File)

NDH-3: Half Yearly Return With The Registrar 

Nidhi has to file form NDH-3 within 30 days from the conclusion of each half-year, duly certified by CA/CS in practice. (ROC Form NDH-3 Require to File)

NDH-4: Form for filing application for a declaration as Nidhi Company and for updation of status by Nidhi 

For every new Nidhi Company – Due date for filing of Form NDH-4 by the Nidhi incorporated under the Act on or after 1st July, 2019 ---- Within 60 days after the expiry of 1 year from the date of its incorporation

Form AOC-4: Filing of Financial Statements :- Every Nidhi company is required to file its Financial Statements, along with Notice calling General Meeting, Directors Report, Auditors Report, Cash Flow Statement, Balance sheet and Notes to Accounts to ROC within 30 days from the date of Annual General Meeting.

Form MGT-7: Filing Annual Return

DOCUMENTS REQUIRED FOR REGISTRATION :- 

1) AADHAR CARD/ PAN CARD , EMAIL ID AND PHONE NUMBER OF DIRECTOR ALONG WITH THIS  LATEST BANK STATEMENT OF DIRECTORS ALSO REQUIRED

2) ELECTRICITY BILL / RENT AGREEMENT / LEASE AGREEMENT