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Every Nidhi company has to submit its annual returns to MCA and another regulatory department by 30-09 of the following financial year. In this article, we will discuss the annual compliance of Nidhi company.
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Nidhi Company is a kind of company which is registered under the Companies Act, 2013. Nidhi Company is the public limited company which is made with the only purpose of accepting deposits and lending money only to its members. It is also Non-Banking Financial Company (NBFC) that has been exempted from the provisions of Reserve Bank of India (RBI).
In other words, we can say that Nidhi companies are allowed to take a deposit from their members and lend to its members only. As a result, the funds contributed to Nidhi company are only from its members (shareholders) and are used only by the shareholders of the Nidhi Company. Therefore, Nidhi Company is an ideal entity to take a deposit from and lend to the specific group of people.
No, There is no full form of Nidhi Company, as it is in itself is a full form. Mutual benefit Company is another name for Nidhi Company.
At least 3 directors & 7 shareholders are vital to register Nidhi Company in India.
As soon as the Nidhi Companies is incorporated, it will be active & in-existence as long as annual compliances are met regularly. A Nidhi Company must have at least 200 shareholders and comply with other required criteria within 1 year of incorporation. In the event, annual compliance isn’t fulfilled then, the Nidhi Companies will be asked to refund the deposits.
There is various compliance are to be taken care of like ratio, company law, money laundering etc. Hence, a study of all relevant act is important. Further, important compliance as per Nidhi Rules and Companies Act are as follows:
Regional Director may consider the application and pass orders within the period of 30 days of receipt of the application.
Read our article: Advantages and Disadvantages of Nidhi Companies in India
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