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NDH-1: Return of Statutory Compliances
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Introduction
NDH-1 is a crucial compliance form that Non-Banking Financial Companies (NBFCs) registered as Nidhi companies must file with the Ministry of Corporate Affairs (MCA) in India. This return is designed to provide an overview of the statutory compliances that Nidhi companies have adhered to within a financial year. Filing NDH-1 is essential to ensure transparency and accountability in the operations of these companies, which primarily cater to small savings and loans among their members.
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Who Needs to File?
All Nidhi companies are required to file the NDH-1 form. This filing obligation applies to every Nidhi company that has been granted registration under the Companies Act, 2013, and is carrying out its operations as a Nidhi. The form must be submitted annually by the company to report compliance with the specified financial ratios and statutory requirements.
Importance of Filing
Filing NDH-1 is of paramount importance for several reasons:
Regulatory Compliance: It helps Nidhi companies demonstrate adherence to the prescribed norms under the Nidhi Rules, 2014, ensuring they operate within the legal framework.
Transparency: The form provides vital information to the regulatory authorities, ensuring transparency in the financial activities of the Nidhi company.
Avoiding Legal Consequences: Regular filing prevents legal actions, penalties, and potential disqualification from being a Nidhi company, which could lead to severe operational disruptions.
Member Confidence: By maintaining compliance, Nidhi companies can build and maintain trust among their members, which is critical for their sustained operations
Filing Deadline
NDH-1 must be filed within 90 days from the close of the financial year. This means that the form should be submitted by June 30th each year, assuming the financial year ends on March 31st.
Documents Required
The following documents are typically required for filing NDH-1:
Financial Statements: A complete set of audited financial statements of the Nidhi company for the financial year.
List of Members: Details of the members who have contributed to the share capital or made deposits in the company.
Compliance Certificate: A certificate confirming that the Nidhi company has complied with all statutory requirements during the financial year.
Additional Information: Any other documents or details as required by the MCA based on the company’s activities during the year.
Penalty for Non-Compliance
Failure to file NDH-1 within the stipulated deadline can result in significant penalties:
Monetary Penalty: A company may be subject to fines ranging from ₹100 to ₹200 per day for each day the default continues.
Legal Action: Persistent non-compliance can lead to legal actions by the MCA, including restrictions on the operations of the Nidhi company.
Disqualification: Repeated failure to file NDH-1 may result in the disqualification of the company from operating as a Nidhi, severely impacting its business and reputation.
Filing Process
FAQs
NDH-1 is a statutory compliance form that Nidhi companies in India must file annually with the Ministry of Corporate Affairs (MCA). It is important because it ensures that Nidhi companies adhere to the financial and operational guidelines set by the Nidhi Rules, 2014, thereby maintaining transparency and accountability in their operations.
All Nidhi companies registered under the Companies Act, 2013, are required to file the NDH-1 form annually. This filing is mandatory for Nidhi companies that are operational and must be done even if the company has not conducted any financial transactions during the year.
The NDH-1 form must be filed within 90 days from the end of the financial year. Typically, if the financial year ends on March 31st, the filing deadline would be June 30th of the same year.
To file NDH-1, a Nidhi company needs the following documents: audited financial statements for the financial year, a list of members, a compliance certificate, and any additional information as required by the MCA.
Failure to file NDH-1 on time can lead to monetary penalties, including a fine ranging from ₹100 to ₹200 per day of delay. Additionally, the company may face legal action, including restrictions on operations or even disqualification as a Nidhi company.
NDH-1 can be filed online through the Ministry of Corporate Affairs (MCA) portal. The process involves logging in with the company’s credentials, filling out the NDH-1 form, attaching the required documents, paying the filing fees, and submitting the form electronically.Â
Once submitted, NDH-1 cannot be revised directly through the MCA portal. If there is a mistake, the company may need to consult with the MCA or a legal advisor to correct the filing. It is advisable to thoroughly review all information before submission to avoid errors.Â
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