What are the Compliances needs to do of Nidhi Company

A Nidhi Company is a type of non-banking financial entity governed by Section 406 of the Companies Act, 2013 and the Nidhi Rules, 2014. Because they deal with public deposits, they face a more rigorous compliance burden than standard private limited companies.

Failure to comply with these regulations can lead to heavy financial penalties for both the company and its officers in default, as well as potential restrictions on accepting new deposits or opening branches.

Mandatory Annual & Event-Based Compliances

To maintain good standing with the Ministry of Corporate Affairs (MCA) and the Registrar of Companies (ROC), a Nidhi Company must fulfill the following:

Note: The Annual General Meeting (AGM) must be conducted by September 30th each year.

Key Operational Requirements

Beyond filing forms, a Nidhi Company must adhere to these structural requirements to avoid "non-compliance" status:

• Membership: Must have at least 200 members within one year of incorporation.

• Net Owned Funds (NOF): Must maintain NOF of at least ₹20 lakh.

• NOF-to-Deposit Ratio: The ratio of Net Owned Funds to deposits must not exceed 1:20.

• Unencumbered Deposits: Must maintain at least 10% of outstanding deposits as unencumbered term deposits.

Penalties for Non-Compliance

The MCA takes a strict stance on non-compliance. Penalties are often calculated on a per-day basis for continuing defaults and can include:

• Late Filing Fees: Typically ₹100 per day per form for delayed filings (NDH-1, NDH-3, AOC-4, MGT-7).

• Officer Liability: Officers in default may face fines ranging from ₹10,000 to ₹1,00,000+, depending on the specific section of the Companies Act violated.

• Operational Restrictions: Failure to meet membership or ratio requirements can lead to an order to stop accepting new deposits.

• Adjudication: In severe cases of persistent non-compliance (e.g., failure to file financial statements), the ROC can impose substantial penalties (sometimes reaching lakhs of rupees) and issue show-cause notices.

Recommendation: Since you have pending audits and filings for previous years, you should immediately appoint a qualified Chartered Accountant or Company Secretary to prepare the pending financial statements, conduct the necessary audits, and file the overdue forms with the ROC to mitigate further "per-day" penalties. You may also need to file Form NDH-2 if you are seeking an extension of time or exemption due to failure to meet specific criteria.

Summary

Nidhi Companies must adhere to strict annual filings (NDH-1, NDH-3, AOC-4, MGT-7) and maintain specific operational criteria (200 members, 1:20 NOF ratio, 10% unencumbered deposits). Failure to comply results in daily monetary penalties and potential operational shutdowns. Immediate action by a professional is required to address your pending audits and filings.