Compliant Growth for Member-Based Financial Institutions

Nidhi Company Compliance

What is Nidhi Company Compliance?
Nidhi Company compliance refers to the mandatory legal and regulatory obligations that a Nidhi Company must fulfill under the Companies Act, 2013 and the Nidhi Rules, 2014. These compliances ensure that the company functions as a member-based mutual benefit institution engaged in borrowing and lending activities among its members only.

Who Requires Nidhi Company Compliance?
Nidhi compliance is mandatory for:
-Registered Nidhi Companies
-Companies declared as Nidhi by the Central Government
-Existing Nidhis and newly incorporated Nidhi Companies
-Nidhis accepting deposits and granting loans to members
Compliance applies irrespective of turnover or operational scale.

Why is Nidhi Company Compliance Mandatory?
Nidhi Companies deal with public money (members’ deposits). Compliance is required to:
-Safeguard the interests of members
-Ensure financial discipline and transparency
-Prevent misuse of funds and illegal lending
Non-compliance may result in penalties, restrictions on operations, or cancellation of Nidhi status.

Importance of Nidhi Company Compliance:
-Maintains legal recognition as a Nidhi Company
-Builds trust among members and regulators
-Prevents penalties and regulatory action
-Ensures smooth acceptance of deposits and loan operations
-Strengthens corporate governance and internal controls

Eligibility & Key Conditions for Nidhi Companies:
-To remain compliant, a Nidhi Company must:
-Have minimum 200 members within the prescribed period
-Maintain Net Owned Funds (NOF) of ₹10 lakh or more
-Ensure deposits do not exceed prescribed limits
-Lend only to its members
-Follow restrictions on branches, advertising, and business activities

Process of Nidhi Company Compliance with Nyayapath Legal:
1. Compliance Assessment
Review of statutory position, member count, and financial ratios.
2. Documentation & Verification
Verification of statutory registers, financials, and member records.
3. Drafting & Advisory
Drafting of resolutions, returns, and advisory on regulatory requirements.
4. Statutory Filings
Timely filing of Nidhi-specific forms and annual returns with ROC.
5. Ongoing Monitoring
Continuous compliance tracking and regulatory updates.

Documents Required for Nidhi Company Compliance:
-Certificate of Incorporation
-MOA and AOA (with Nidhi objects)
-Member register and shareholding details
-Financial statements and audit reports
-Details of deposits and loans
-Board and AGM resolutions

Additional Compliance Requirements:
-Filing of NDH-1, NDH-3, and NDH-4 (as applicable)
-Maintenance of prescribed deposit and loan ratios
-Annual statutory audit
-Regular Board and General Meetings
Nyayapath Legal ensures complete compliance management, minimizing risk and ensuring uninterrupted operations.

Why Choose Nyayapath Legal?
-Specialized expertise in Nidhi regulations
-Accurate and timely statutory filings
-Clear compliance guidance and reminders
-Confidential and secure handling of financial data
-End-to-end legal support.