Annual Compliance for Nidhi Company in India

• Nidhi Companies are required to maintain proper books of accounts and file their financial statements annually with the Registrar of Companies (ROC).
• The financial statements must be approved by the Board of Directors before filing with the ROC.
• The financial statements include:
• Balance Sheet
• Profit & Loss Account
• Cash Flow Statement (if applicable)
• The financial statements are filed in Form AOC-4 with the ROC within 30 days from the date of the Annual General Meeting (AGM).

• A Nidhi Company is required to file an Annual Return with the Registrar of Companies (ROC). The Annual Return includes:
• Details of the company’s shareholders, directors, and key managerial personnel (KMP).
• Shareholding patterns, if applicable.
• Any changes in the membership, capital structure, or governance during the year.
• The Annual Return should be filed in Form MGT-7 with the ROC, within 60 days from the date of the AGM.

• A Nidhi Company is required to hold an Annual General Meeting (AGM) within 6 months from the end of the financial year, i.e., by 30th September.
• The first AGM must be held within 9 months from the end of the first financial year.
• The AGM is used for the following:
• Approval of financial statements (Balance Sheet and Profit & Loss Account).
• Declaration of dividends (if any).
• Election or reappointment of directors.
• Appointment or reappointment of auditors.
• Failure to hold an AGM within the prescribed time limits can lead to penalties.

• The Board of Directors of a Nidhi Company must prepare and sign a Director’s Report, which is then presented at the AGM.
• The Director’s Report should cover:
• Review of the company’s performance during the year.
• Dividends declared (if any).
• Any changes in directors or KMPs.
• Corporate governance practices (if applicable).
• Any significant events, changes, or financial matters.

• A statutory audit must be conducted by a qualified Chartered Accountant (CA) to verify the company’s financial records and statements.
• The audit ensures that the financial statements represent a true and fair view of the company’s financial health.
• The Audit Report is presented to the shareholders at the AGM, and the auditor must file their report with the ROC.

• A Nidhi Company must file its Income Tax Returns (ITR) with the Income Tax Department.
• The filing due date is generally 30th September of the assessment year.
• The Nidhi Company must report all income, expenditure, and taxes paid during the financial year.

• Directors of the Nidhi Company must file DIR-3 KYC with the Ministry of Corporate Affairs (MCA) every year.
• Failure to file DIR-3 KYC could lead to the disqualification of directors.
• The form must be filed by 30th September each year.

• A Nidhi Company must maintain certain statutory registers as required under the Nidhi Rules, 2014 and Companies Act, 2013. These include:
• Register of Members: List of members/shareholders of the company.
• Register of Directors and KMP: Details of directors and key managerial personnel.
• Register of Loans: A record of the loans granted by the company to its members, as per Nidhi regulations.
• Minutes Book: The minutes of board meetings, AGM, and other meetings should be maintained.

• Nidhi Companies are required to comply with the specific provisions under the Nidhi Rules, 2014. Some key requirements include:
• Net Owned Funds: The company must maintain a minimum of ₹10 lakhs in net owned funds.
• Membership Criteria: Nidhi Companies can only deal with their members and cannot accept deposits from non-members.
• Share Capital: The company must maintain a minimum paid-up share capital of ₹5 lakhs.
• Loan and Deposit Limitations: Nidhi Companies can only accept deposits from their members and are restricted in the types of loans they can offer.

• A Nidhi Company is required to pay the following fees:
• Income Tax: The company must file its income tax returns and ensure taxes are paid within the prescribed deadlines.
• Registrar of Companies Fees: Fees for filing documents like annual returns and financial statements with the ROC.
• Audit Fees: Fees for conducting the statutory audit must be paid to the auditor.

• In addition to the statutory requirements under the Companies Act and Nidhi Rules, a Nidhi Company must also comply with other laws and regulations based on its operations. Some of the important regulations include:
• Labour Laws: Compliance with the Employees Provident Fund (EPF), Employee State Insurance (ESI), and other employee welfare laws.
• Goods and Services Tax (GST): If applicable, GST returns must be filed on time.
• RBI Regulations: Nidhi Companies must ensure compliance with any Reserve Bank of India (RBI) regulations concerning the acceptance of deposits and lending activities.

Although not mandatory for all Nidhi Companies, if the Nidhi Company has a paid-up share capital of ₹10 crore or more, it is required to conduct a secretarial audit. A qualified Company Secretary (CS) should perform the audit and submit a Secretarial Audit Report to the ROC.