Nidhi Company Compliance

Nidhi Company is a type of Non-Banking Financial Company and also known as NBFC. Like any other company, Nidhi Company also needs to file a few annual compliances and it is famously known as Nidhi Company Annual Compliance. The legal compliances associated with Nidhi Company are prescribed in Nidhi Rules 2014 and the Companies Act 2013. Nidhi Company is the perfect type of company for those who want to start a business with minimum capital investment. As per the provisions of Section 406(1) of the Companies Act, 2013, the Nidhi Company as 'A company which has been incorporated as a Nidhi with the object of cultivating the habit of thrift and savings amongst its members, receiving deposits from, and lending to, its members only for their mutual benefit.”

Documents required to Nidhi Company Compliances

Necessary compliances to be followed are:

• Annual Compliances of Nidhi Company help in forming an exact perception of the company’s working pattern and performance.
• It is mandatory for every company to register as per the Companies Act 2013 to submit the annual compliances.
• In case preference shares are issued they are to be redeemed as per the same terms of the issue.
• Furthermore, Nidhi Company comes under the criteria of a public company hence it helps to protect the interest of its members, it becomes mandatory for every Nidhi Company to follow the compliances rules.