Compliances :- Nidhi Companies
Nidhi Companies in India, as non-banking financial institutions, are subject to certain yearly compliance requirements to maintain their legal status and adhere to the regulations laid down by the Ministry of Corporate Affairs (MCA). Nidhi Companies are governed by the Nidhi Rules, 2014, and they operate on the principle of mutual benefit, accepting deposits and providing loans only to their members. Below are the key yearly compliances for Nidhi Companies in India:
Annual Return (Form NDH-1): Nidhi Companies must file an annual return in Form NDH-1 with the Registrar of Companies (RoC). The annual return contains details of the company's activities, financial position, and particulars of its members. The Form NDH-1 must be filed within 90 days from the close of the financial year, i.e., by June 30 each year.
Financial Statements (Form NDH-3): Nidhi Companies are required to prepare and file financial statements in Form NDH-3 with the RoC. The financial statements include the company's balance sheet, profit and loss account, and other required financial disclosures. Form NDH-3 must be filed within 90 days from the end of the financial year, i.e., by June 30 each year.
Statutory Audit: Every Nidhi Company is required to undergo a statutory audit of its financial statements by a qualified chartered accountant. The auditor's report must be attached to the financial statements while filing Form NDH-3.
Income Tax Return (ITR): Nidhi Companies are required to file income tax returns annually, reporting their income and financial transactions. The due date for filing income tax returns for Nidhi Companies is generally September 30 each year.
TDS (Tax Deducted at Source) Compliance (if applicable): If the Nidhi Company makes payments subject to TDS (e.g., interest payments to members), it must deduct the TDS and deposit it with the government within the prescribed time. The company is also required to file TDS returns as per the Income Tax Act.
GST Returns (if applicable): If the Nidhi Company is registered under the Goods and Services Tax (GST), it must file regular GST returns, such as GSTR-3B (monthly) and GSTR-9 (annual), in accordance with the GST law.
It is crucial for Nidhi Companies to adhere to these yearly compliance requirements to avoid penalties and maintain their legal status.