Minimum Turnover for GST before Application
27 Feb, 2024
Nidhi Company rules and regulations you should be aware of to oversee the Nidhi Companies post-amendment in Companies Act 2013. A Nidhi Company is a form of NBFC incorporated with the intent to implant the habit of thrift and saving, among the members for their mutual benefit. The incorporation of Nidhi Company takes place under Section 406 of the Companies Act, 2013.
According to the Nidhi Rules, 2014, a Nidhi Company must register as a public company.
Form NDH-1– The Return of Statutory Compliances is included in this form. A Nidhi Company must file NDH-1 together with the required fees within 90 days of the first financial year's end. This form must be duly certified by a Company Secretary or a practicing Chartered Accountant.
No Nidhi Company should perform business operations other than lending and borrowing business in their own name.
The Nidhi Company Rules and Regulations are governed by the Ministry of Corporate Affairs (often abbreviated as MCA). The Reserve Bank of India has the authority to issue directions to Nidhi Companies about their acceptance and deposit activities. However, because Nidhi Companies' operations involve the money of its owners, the Reserve Bank of India has specifically exempted this type of company from complying with its essential provisions, such as obtaining RBI registration and so on. Borrowing and lending operations are how Nidhi Companies raise money. Nidhi Company standards and regulations are fairly strict when it comes to forming a Nidhi Company. The Nidhi Rules, 2014, established by the Central Government of India, should be followed by all Nidhi companies.