Nidhi companies are non-banking financial entities that operate primarily to cultivate the habit of savings and provide loans to their members. These companies are governed under the Companies Act, 2013, and must adhere to specific regulatory and statutory compliances to maintain their status. Key compliances include maintaining the prescribed Net Owned Funds (NOF), ensuring proper member registration, and following limits on deposits and loans. Nidhi companies must file periodic returns with the Registrar of Companies (ROC), such as annual filings (AOC-4 and MGT-7) and statements regarding financial transactions and member details. Additionally, they must adhere to RBI and MCA guidelines on lending, borrowing, and dividend distribution. Internal governance, such as maintaining statutory registers, conducting board meetings, and ensuring transparency in financial reporting, is critical. Non-compliance can attract penalties, legal action, or even cancellation of the Nidhi license. Professional guidance is recommended to ensure timely filing, regulatory adherence, and robust internal controls, thereby maintaining the company’s credibility, protecting members’ interests, and ensuring sustainable operations.