Nidhi Company Compliance: NDH Returns and ROC Filings
Keep your Nidhi company aligned with the Nidhi Rules through NDH-1, NDH-3, NDH-4 and annual ROC filings handled by our team.
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Nidhi company compliance is the set of statutory returns and conditions that a Nidhi, a mutual benefit company that takes deposits from and lends to its members, must follow under the Nidhi Rules, 2014 made under the Companies Act, 2013. It concerns promoters and directors of Nidhi companies, who face stricter rules than an ordinary private company. Besides the usual AOC-4 and MGT-7 filings, a Nidhi has to meet requirements on membership, net owned funds and deposits, and file returns such as NDH-1 and NDH-3. Our team of Company Secretaries reviews your position, prepares the returns and keeps the company within the rules.
Who provides this service: our team of Company Secretaries and compliance specialists.
Who Needs Nidhi Company Compliance?
- Directors and promoters of newly incorporated Nidhi companies
- Existing Nidhis that have not filed NDH returns regularly
- Nidhis that are unsure whether they meet membership and funds conditions
- Companies that received a notice or query from the Registrar on Nidhi filings
- Founders planning to convert or restructure a Nidhi business
Key Benefits
- A compliance review against the Nidhi Rules, with each condition mapped to the records you hold
- NDH returns prepared from your registers and bank records and filed on the MCA portal
- Annual ROC filings such as AOC-4 and MGT-7 coordinated with the Nidhi-specific returns
- Early warning when membership, net owned funds or deposit position moves near a rule boundary
- Support with the application for declaration as a Nidhi company where the company is newly formed
- Records and registers organised so that inspections or queries can be answered promptly
How It Works
Rule-by-rule compliance review
We take your registers, financial statements and bank records and test them against the Nidhi Rules on membership, net owned funds, deposits, loans and permitted activities, then list gaps and the steps needed to close them.
Declaration as a Nidhi company
For newly incorporated Nidhis, we prepare the application for declaration as a Nidhi company in Form NDH-4 and the supporting records, so the company is formally recognised before it carries on Nidhi business at scale.
Statutory returns of compliance
Our team prepares Form NDH-1, the return of statutory compliances, and the half-yearly return in Form NDH-3, using figures drawn from the books and registers, and files them within the periods prescribed in the Rules.
Member deposit and loan checks
We verify that deposits are accepted only from members, loans are given only to members against permitted security, and that registers for members, deposits and loans are written up and consistent with the accounts.
Annual ROC filings
Financial statements are finalised and audited, and Forms AOC-4 and MGT-7 are filed along with director KYC and auditor-related filings, in line with the general provisions that apply to all companies.
Board records and follow-up
We prepare board and general meeting minutes, keep a calendar of due dates and follow up on any ROC query or notice, so that the company stays current through the year and not only at the filing date.
Documents Required
- Certificate of incorporation, memorandum and articles of the Nidhi company
- Register of members with details of shares held and member deposits
- Register of deposits and loans given to members
- Bank statements, including the statement showing any required fixed deposit or fund position
- Latest audited financial statements and audit report
- Calculation of net owned funds and deposit position as at the relevant date
- Board and general meeting minutes for the period
- Digital signature certificates of directors and the authorised signatory
- Copies of earlier NDH returns, MCA acknowledgements and the NDH-4 approval, if obtained
Timeline and Fees
Indicative timeline: A compliance review usually takes one to two weeks, and each return takes a few working days once records are ready; processing depends on the Registrar of Companies and the Ministry of Corporate Affairs.
Professional fee: Our professional fee depends on how many returns and years are involved, the size of the membership and deposit base, whether a compliance review and remediation are needed and whether audit and ROC filings are included. Government filing fees are as per the MCA portal. Contact us for a quote.
What Can Go Wrong if This Is Missed or Done Incorrectly
- Late or missed NDH and annual filings can attract additional fees and penalties on the company and its officers
- Accepting deposits from or lending to non-members is a breach of the Nidhi Rules and can invite regulatory action
- Failing the conditions on funds, deposits or membership can affect the status of the company as a Nidhi
- Prolonged default may lead to action by the Registrar, including proceedings that affect the company standing on the register
Frequently Asked Questions
What is a Nidhi company and which rules govern it?
A Nidhi is a company whose object is cultivating the habit of thrift and savings among its members, and it accepts deposits from and lends only to members. It is governed by the Companies Act, 2013 and the Nidhi Rules, 2014. The Rules set conditions on membership, funds, deposits, lending and returns that ordinary companies do not face.
What are NDH-1, NDH-3 and NDH-4?
NDH-1 is the return of statutory compliances filed by a Nidhi after the first year, NDH-3 is the half-yearly return filed on a continuing basis, and NDH-4 is the application for declaration as a Nidhi company. The forms are filed on the MCA portal. Check the Rules and the portal for the exact filing periods before each filing.
Do Nidhi companies also file AOC-4 and MGT-7?
Yes. A Nidhi is a company and has to file its financial statements in AOC-4 and its annual return in MGT-7 with the Registrar of Companies, along with the other annual filings such as director KYC and auditor appointment. These are in addition to the Nidhi-specific returns and have their own due dates.
Can a Nidhi company lend to the public or accept deposits from non-members?
No. A Nidhi can accept deposits only from its members and lend only to its members, against the type of security the Rules permit. It cannot carry on businesses such as chit funds, hire purchase or insurance. Dealing with non-members is a breach and can attract serious regulatory action.
Are there conditions on net owned funds and deposits?
Yes. The Rules prescribe requirements on minimum net owned funds, the relationship between funds and deposits, minimum membership and holding of liquid deposits. The thresholds and ratios are laid down in the Rules and have been amended, so confirm them in the current text before relying on any number you find online.
What happens if a Nidhi company does not comply with the Rules?
The company and its officers may face penalties, the Central Government can restrict acceptance of deposits, and the Registrar can act on defaults under the Companies Act. Prolonged default also affects the ability of the company to be treated as a Nidhi. A review of compliance helps decide how to regularise the position.
Official Sources
Rules, forms and fees change. Check the current position on the official portal:
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Last reviewed: . Laws, fees and procedures change; check the official portal before you act.
Disclaimer: The information on this page is for general informational purposes only and does not constitute professional legal, tax or compliance advice. Requirements vary by situation. Please consult a qualified CA or CS for advice specific to your needs. Government fees and timelines are subject to change; verify with the relevant authority before proceeding.