What is Nidhi Company Compliance?

Nidhi Company Compliance refers to the statutory and regulatory obligations that a registered Nidhi Company must fulfill under the Companies Act, 2013 and Nidhi Rules, 2014. A Nidhi Company is a type of Non-Banking Financial Company (NBFC) formed to promote thrift and savings among members, and can accept deposits and lend only to its members.

Compliance ensures the company maintains financial discipline, protects member interests, and avoids penalties or deregistration. Annual compliance includes ROC filings, maintenance of financial ratios, reporting of member data, and internal governance requirements.

Being a finance-focused entity, a Nidhi Company must uphold transparency, compliance, and trust, which are critical to retaining members and legal validity.

✅ Benefits of Nidhi Company Compliance
🎯 Written from the client’s perspective.

1️⃣ Protects the company from penalties, suspension, or legal action
2️⃣ Enhances trust among existing and potential members
3️⃣ Ensures eligibility for expansion and branch opening
4️⃣ Builds a credible image for attracting deposits and issuing loans
5️⃣ Helps in renewing or applying for licenses and government approvals
6️⃣ Maintains active company status with the MCA
7️⃣ Encourages financial discipline and smooth audits

📑 Documents Required for Nidhi Company Compliance
📂 Key documents with brief descriptions.

1️⃣ 📄 Certificate of Incorporation – Official proof of company registration
2️⃣ 📘 MOA & AOA – Defines the company’s objectives and rules
3️⃣ 📊 Financial Statements – Profit & Loss Account, Balance Sheet
4️⃣ 🧾 PAN of the Company – Identification for taxation purposes
5️⃣ 👥 List of Members – Updated register of all company members
6️⃣ 📅 Meeting Minutes – Board and AGM resolutions and decisions

👤 Eligibility for Nidhi Company Compliance
🧾 Who must comply?

All companies registered as Nidhi Companies under the Companies Act, 2013 are required to fulfill the following compliance obligations:

• Must file NDH-1 within 90 days of the first financial year end

• Should have at least 200 members and ₹10 lakh Net Owned Funds

• Must maintain a 1:20 deposit-to-fund ratio

• Should conduct regular board meetings and maintain proper records

• Must file annual returns and financial statements with ROC

🔄 Process of Nidhi Company Compliance
🔁 A step-by-step guide.

1️⃣ Initial Assessment – Review of last year’s filings, financials, and member data
2️⃣ Preparation of Statutory Records – Drafting of minutes, registers, financials
3️⃣ Filing NDH-1 – Return of statutory compliances within 90 days from year end
4️⃣ Filing NDH-3 – Half-yearly return submission to the ROC
5️⃣ Annual ROC Filing – Submit MGT-7 (Annual Return) & AOC-4 (Financials)
6️⃣ Final Compliance Report – Complete filing report and compliance checklist

⏱️ Timeline for Nidhi Company Compliance
⏳ Important due dates and duration.

• NDH-1 – Within 90 days from end of first financial year

• NDH-3 – Within 30 days from the end of each half-year (April–Sept, Oct–Mar)

• MGT-7 (Annual Return) – Due within 60 days from AGM

• AOC-4 (Financials) – Due within 30 days from AGM

• Filing process typically takes 7–10 working days upon document submission

❓ Frequently Asked Questions (FAQs) about Nidhi Company Compliance

1️⃣ Is it mandatory for a Nidhi Company to file ROC forms annually?
Yes, it is compulsory to file MGT-7 and AOC-4 every year with the Registrar.

2️⃣ What is NDH-1 and when should it be filed?
NDH-1 is the return of statutory compliance, filed within 90 days of financial year-end.

3️⃣ What if my Nidhi Company has less than 200 members?
You must file NDH-2 to seek an extension to meet the minimum member requirement.

4️⃣ How many board meetings are required in a year?
A minimum of four Board Meetings and one AGM is required every financial year.

5️⃣ What happens if compliance is not maintained?
Penalties, loss of Nidhi status, or even strike-off by MCA can occur.

6️⃣ Can a Nidhi Company accept deposits from non-members?
No, it can only accept deposits from and lend to its members.

7️⃣ Are audit reports mandatory for a Nidhi Company?
Yes, statutory audit is mandatory and must be submitted with AOC-4.

8️⃣ Is there a penalty for late filing?
Yes, penalties start at ₹100 per day per form for delayed filings.

9️⃣ What is NDH-3 used for?
It’s a half-yearly return showing deposits, loans, reserves, and members.

🔟 Do you provide ongoing compliance support?
Yes, we offer complete end-to-end annual and event-based compliance management.