Foreign Company, Deposits & Nidhi Company Services

Q: What are the compliance requirements for a foreign company operating in India?

File FC-1 within 30 days of establishment, FC-3 within 6 months, FC-4 within 60 days of financial year end. Display name and country at all offices. Appoint Indian resident authorized representative. Comply with all applicable Indian laws.

Q: What is Form DPT-3 and who must file it?

Annual return of deposits filed by 30 June each year covering outstanding deposits, exempt amounts, and deposits accepted/repaid during the year. Required even for companies with no outstanding deposits but amounts exempt from deposit classification.

Q: What is a Nidhi company and how does it differ from a bank or NBFC?

A Nidhi is a mutual benefit society under Section 406 that can only lend to and accept deposits from its own members. Unlike banks and NBFCs, not regulated by RBI for deposit-taking. Governed by the Nidhi Rules, 2014 under MCA supervision.

Q: Can a private limited company accept deposits from the public?

No. Only eligible public companies meeting specified conditions can accept public deposits. Private companies may accept deposits from members only under prescribed conditions and limits.

Q: What are the minimum requirements for a Nidhi company?

Minimum ₹10 lakh paid-up equity capital; 200 members within one year; Net Owned Fund ≥ ₹20 lakh; NOF-to-deposit ratio ≤ 1:20; unencumbered term deposits ≥ 10% of outstanding deposits.

Specialised Compliance for Foreign Companies Operating in India, Deposit-Accepting Companies, and Nidhi Companies

Foreign companies establishing a place of business in India, companies accepting public deposits, and Nidhi companies all operate under specialised regulatory frameworks with distinct compliance requirements beyond those of ordinary private or public companies. Non-compliance in these categories attracts significant penalties and — in the case of deposits — direct regulatory intervention.

Our services cover the complete compliance requirements for foreign companies under Chapter XXII of the Companies Act, 2013, deposit compliance under Section 73–76A and the Companies (Acceptance of Deposits) Rules, and Nidhi company registration and ongoing compliance. These connect with our annual filings and company compliance services for the broader corporate framework.

Our Services

Foreign Company Registration (FC-1)

Filing of Form FC-1 within 30 days of establishing a place of business in India — covering details of the foreign company, its directors, and the authorized representative in India.

Foreign Company Annual Filing (FC-3 & FC-4)

Annual filing of FC-3 (financial statements) and FC-4 (annual return) for foreign companies having a place of business in India — equivalent to AOC-4 and MGT-7 for domestic companies.

Deposit Compliance (DPT-3)

Filing of Form DPT-3 — the mandatory annual return of deposits — for all companies that have accepted deposits or have outstanding amounts that qualify as deposits under the Companies Act.

Deposit Repayment Reserve

Assistance with compliance around the mandatory Deposit Repayment Reserve — companies accepting deposits must deposit 20% of the deposits maturing in the following year in a separate bank account.

Nidhi Company Registration

End-to-end assistance with incorporation of a Nidhi company — a mutual benefit society that lends to and accepts deposits from its members — including MOA/AOA drafting and MCA filing.

Nidhi Annual Compliance (NDH-1, NDH-2, NDH-3)

Filing of NDH-1 (half-yearly return), NDH-2 (application for extension of time), and NDH-3 (half-yearly return) to keep Nidhi companies compliant with the Nidhi Rules, 2014.

Key Compliance Facts

Foreign companies must file FC-1 within 30 days of establishing a place of business in India
FC-3 (financial statements) must be filed within 6 months of the end of the financial year
DPT-3 (return of deposits) must be filed annually by 30 June for all companies with outstanding deposits or amounts qualifying as deposits
Companies accepting deposits must maintain a Deposit Repayment Reserve of 20% of deposits maturing in the next year
Nidhi companies must have a minimum of 200 members within one year of incorporation
Nidhi companies must maintain a Net Owned Fund to Deposit ratio of 1:20
Acceptance of deposits in contravention of Section 73-76A attracts a penalty of up to ₹10 crore or twice the deposit amount

Frequently Asked Questions

What are the compliance requirements for a foreign company operating in India?

A foreign company establishing a place of business in India must: file FC-1 within 30 days of establishment; file FC-3 (financial statements) within 6 months of financial year end; file FC-4 (annual return) within 60 days of financial year end; display its name and country of incorporation at every office in India; and comply with applicable Indian laws including income tax, GST, FEMA, and labour laws. The company must also appoint an authorized representative resident in India.

What is Form DPT-3 and who must file it?

Form DPT-3 is an annual return of deposits that must be filed by every company (other than a government company) with the ROC by 30 June each year. It covers outstanding amounts received by the company that qualify as deposits, amounts not considered deposits (such as loans from directors and shareholders), and details of any deposits accepted and repaid during the year. Even companies with no outstanding deposits but with amounts exempt from deposit classification may be required to file DPT-3.

What is a Nidhi company and how does it differ from a bank or NBFC?

A Nidhi company is a type of non-banking financial company recognised under Section 406 of the Companies Act, 2013. It is a mutual benefit society that can only lend to and accept deposits from its own members — it cannot deal with the general public. Unlike banks and NBFCs, Nidhi companies are not regulated by the RBI for deposit-taking purposes. They are governed by the Nidhi Rules, 2014 and supervised by the Ministry of Corporate Affairs.

Can a private limited company accept deposits from the public?

Generally, no. Under Section 73 of the Companies Act, 2013, only eligible public companies that comply with specified conditions — including credit rating, deposit insurance, and deposit repayment reserve — can accept deposits from the public. Private companies may accept deposits only from their members (not the public) and must comply with the conditions and limits prescribed under the Companies (Acceptance of Deposits) Rules. Violations attract significant penalties including imprisonment of officers.

What are the minimum requirements for a Nidhi company?

A Nidhi company must: have a minimum paid-up equity share capital of ₹10 lakh; have at least 200 members within one year of incorporation; maintain a Net Owned Fund of at least ₹20 lakh; maintain a NOF-to-deposit ratio not exceeding 1:20; and ensure unencumbered term deposits with scheduled commercial banks or post offices are at least 10% of the outstanding deposits. Annual compliance includes NDH-1 (half-yearly return), NDH-3 (half-yearly return), and NDH-4 (application for Nidhi status).