1. Filing a Statutory Declaration to ROC

• Within 90 days of incorporation, the company must file Form NDH-1 with the Registrar of Companies.
  
• NDH-1 declares that the company has complied with the minimum member and fund requirements.
  
• It must be certified by a practising Chartered Accountant, Company Secretary, or Cost Accountant.
  
• This is a mandatory filing to confirm the company’s intention to operate as a Nidhi.
  
• Delay or failure in filing can lead to penal consequences or disqualification.
  

2. Achieving Minimum Membership and Net Owned Funds

• The company must have at least 200 members within 1 year of incorporation.
  
• It must maintain a Net Owned Fund (NOF) of ₹10 lakhs or more.
  
• The ratio of NOF to deposits must not exceed 1:20.
  
• At least 10% of total deposits should be maintained as unencumbered term deposits.
  
• If the company is unable to meet these requirements, it must file Form NDH-2 to seek an extension.
  

3. Maintenance of Statutory Registers and Records

• The company must maintain registers such as the Register of Members, Register of Deposits, and Register of Loans.
  
• Minutes of Board Meetings and General Meetings must be recorded and maintained.
  
• Books of accounts and financial statements must be prepared and kept updated.
  
• Statutory records must be available for inspection by regulatory authorities.
  
• These records form the legal and operational backbone of the company.
  

4. Periodic and Annual Filings

• File Form NDH-3 every six months with details of members, deposits, loans, and reserves.
  
• File AOC-4 annually to submit audited financial statements to the Registrar of Companies.
  
• File MGT-7 annually for submitting the company’s annual return with shareholder and director details.
  
• Timely filing is essential to avoid late fees, penalties, or action against the company.
  
• All filings must be digitally signed and submitted via the MCA portal.
  

5. Compliance with Operational Restrictions

• The company must restrict financial activities to members only.
  
• It cannot issue preference shares, debentures, or solicit public deposits.
  
• It cannot undertake business related to chit funds, hire purchase, or leasing.
  
• Advertisement for deposit schemes to the public is not allowed.
  
• Any non-compliance may result in regulatory action, including suspension of Nidhi status.