A Nidhi Company, governed by Section 406 of the Companies Act, 2013, is a non-banking financial company (NBFC) focusing on lending and borrowing among its members. While operating as a Nidhi Company brings numerous benefits, strict adherence to audit and compliance requirements is crucial to avoid penalties and ensure smooth operations.
At CAPLUS, we specialize in providing end-to-end Nidhi Company audit and compliance services. Our team of experts helps you meet all regulatory requirements efficiently, so you can focus on growing your financial network.
Importance of Nidhi Company Audit & Compliance
Compliance for a Nidhi Company is mandatory to maintain transparency and build trust among its members. Failure to meet compliance obligations can lead to penalties, loss of credibility, and even cancellation of registration. Here’s why audit and compliance are essential:
1. Legal Adherence: Ensures operations align with the Companies Act, 2013, and Nidhi Rules, 2014.
2. Financial Accuracy: Audits verify the company’s financial records and transactions.
3. Member Trust: Transparent compliance boosts confidence among members and stakeholders.
4. Avoidance of Penalties: Staying compliant prevents hefty fines and legal issues.
Filing of audited financial statements, including balance sheets and profit-loss accounts.
Nidhi Companies can accept deposits, but:
The total deposit must not exceed 20 times the NOF.
Fixed and recurring deposits must adhere to prescribed limits.
Directors must comply with specific eligibility criteria, including the requirement to serve for a defined tenure.
Companies are required to maintain:
Member registers.
Loan registers.
Deposit records.
How CAPLUS Can Help with Nidhi Company Audit & Compliance
At CAPLUS, we provide tailored solutions to meet the unique needs of Nidhi Companies. Our services include:
We ensure your ROC filings, such as MGT-7 and AOC-4, are accurate and submitted on time.
Our experienced auditors conduct statutory audits to ensure your financial records meet regulatory standards.
We monitor compliance status regularly, ensuring you adhere to rules like membership thresholds and deposit limits.
We offer expert advice on:
Meeting membership criteria.
Managing deposits and loans.
Maintaining statutory records.
Step-by-Step Process for Nidhi Company Compliance with CAPLUS
Common Challenges in Nidhi Company Compliance
Meeting the minimum member requirement can be challenging for new companies. CAPLUS provides strategies to help attract members.
Nidhi Companies must carefully manage deposits to meet the NOF-to-deposit ratio. We offer guidance on maintaining this balance.
Errors in annual returns or financial statements can lead to penalties. Our team ensures accurate and error-free filings.
Many companies are unaware of specific compliance rules. CAPLUS educates clients on their responsibilities under the law.
Why CAPLUS?
CAPLUS, is a trusted name in Nidhi Company compliance. With our expertise, you can rest assured that your company’s audit and filing needs are in safe hands.
What is the minimum membership requirement for a Nidhi Company?
What is the penalty for non-compliance with Nidhi Rules?
How often must a Nidhi Company file its annual returns?
Can a Nidhi Company lend to non-members?
How does CAPLUS ensure error-free filings?
What is the NOF-to-deposit ratio for Nidhi Companies?
Ensuring Nidhi Company compliance is vital for maintaining legal status and earning member trust. With CAPLUS, you can rely on expert guidance for all audit and compliance needs. From annual filings to statutory audits, we handle it all, so you can focus on growing your business network.
Contact CAPLUS today for a consultation and experience hassle-free Nidhi Company compliance!