Mandatory Compliance For Nidhi Company
A Nidhi Company is registered as a public limited company but it shall have minimum Five Lakh paid-up equity share capital and within one year of registration the company has to maintain its Net Owned Fund of rupees ten lakh or more. And within one year from registration, the ratio of Net Owned fund to deposit will not be more than 1:20.
NET OWNED FUND means the aggregate of paid-up share capital and free reserve and reduced by accumulated loss and intangible assets appear in the last audited balance sheet. Here paid-up capital does not include preference share capital as the company is restricted to issue such shares.
A Nidhi Company cannot issue preference shares to increase its capital neither at the time of registration nor after registration. At the time of registration, only seven members are required but within one year from registration the company has to make 200 or more members, it means the company shall have a minimum 200 members within one year from the registration the unencumbered term deposit shall not be less than 10% of outstanding deposits (as specified under rule 14).
COMPLIANCE FOR NIDHI COMPANY
Every company has to do its compliances regularly to avoid penalties; there are different compliance which a company has to follow as per its identity and category. The government has made different types of compliances for a different type of company and in Nidhi Company the compliance is quite different from the normal company because Nidhi Company has to follow Nidhi Rules, 2014 as well as Companies Act, 2013.
AS PER COMPANIES ACT, 2013:
- The company has to open its bank account and deposit the paid-up capital in such an account and has to submit the bank statement of the company specify such transaction that the paid-up capital has been deposited in form INC-20A along with the fees.
- The company has to conduct its first board meeting within 30 days from the registration of the company.
- The company has to appoint a statutory auditor within 30 days from the date of registration of the company.
- The company has to conduct four board meetings and one annual general meeting in a year. And the gap between two board meetings shall not be more than 120 days.
- The company has to file its income tax return every year after the end of the financial year. The financial year starts on 1st April and ends on 31st March.
- The company has to file the financial statement to the government in form AOC-4 within 30 days from the Annual General Meeting and the Annual returns shall be submitted in form MGT-7 within 60days from the Annual General Meeting.
- The Annual General Meeting shall be held every year within 6 months from the end of the financial year but the gap between two annual general meetings shall not be more than 15 months. The first annual general meeting can be held within 9 months from the end of the financial year.
AS PER NIDHI RULES, 2014
- Within 90 days from the end of the financial year after the incorporation of Nidhi Company and where applicable, the second financial year, the Nidhi Company has to file NDH-1 for statutory compliance.
- If Nidhi Company fails to do the compliance* which is mandatory to do then the company has to file NDH-2 for the extension to the Regional Director within 30 days from the end of the financial year.