Add Your Heading Text HereProcess to Closure of Nidhi Companies in India

A Nidhi company is a type of non-banking finance Sector Company, recognized under section 406 of the Companies Act 2013. The aim of building the company is to borrow and lend money to its members. If the operators want to close it at any point of time, they should follow some rules and comply with all of them. Otherwise, a dormant Nidhi company may be penalized or fined for non-compliance. Therefore, it is better not to leave a registered Nidhi company open if it is not maintained. If you want to close a Nidhi company, contact Online Legal India. Our professional and experienced CA/CS will suggest and take the necessary action to close it online.

The closing process of a Nidhi company is known as strike-off or company closure. It should be executed under the newly notified rules of 2016, section 248 of the Companies Act, 2013. If the company is not profitable, it is better to close the Nidhi Company. Otherwise, a non-functional company has to submit audit-related and other documents online. We take complete responsibility for ensuring that your strike-off application will be submitted accurately and flawlessly.

Advantages of Closing a Nidhi Company

A Few Advantages of Nidhi Company closure is mentioned below:

 Productive Use of Resources

After closing a Nidhi company, you can use the resources for another project or productive purposes.

 Avoid Penalties

Any company, including a registered Nidhi company, needs to file an annual audit report and comply with the MCA. Otherwise, the company will be fined or penalized. To avoid these penalties, you must file a Nidhi Company Strike Off form by professionals.

 Be Free From Record Maintenance

After submitting the strike-off documents of your Nidhi Company, and when they are accepted, you do not need to maintain any data or legal documents to meet compliance.

 There is No Need to File Tax

When you wind up your Nidhi Company, you do not need to file income tax on source.

 Yearly Compliance Cost Removal

You need not pay a single rupee to meet yearly compliance costs.

So, go for the closure of your dormant Nidhi Company and crop a lot of benefits. Contact Online Legal India to get assistance from a professional CA/CS.

Documents for Closure of a Nidhi Company

The list of documents is as follows:

• Statement of accounts, including the debts and liabilities of the company duly audited
• Special resolutions from the members, where 75% members’ consent is required
• Indemnity Bond notarized by the directors (STK-3)
• Affidavit in form STK-4
• Latest Bank Statement
• Bank Account Closure Certificates
• PAN card of the company

How to Close a Nidhi Company -Step by Step Description

Step 1

Draft a closure application and submit it to ROC (Register of Companies) by signing it through DSC (Digital Signature Certificate).

Step 2

The ROC has to approve the closure certificate

Step 3

On approval of ROC, he will issue a notice regarding the application of Nidhi company closure.

Step 4

If nobody has any objection to closing the proposed Nidhi Company, ROC will close the company officially.

The completion of the entire process takes around 20 to 25 working days. It may differ depending on the application processing time and the action taken by the state government.

Methods to Close a Nidhi Company

There are 3 methods of closing a Nidhi company. They are as follows:

1. Defunct company

A defunct company is a dormant company that cannot be operated anymore. Usually, the assets and liabilities are zero. When a company fails to generate business within a year, it can be called a defunct company. So, the company authorities can close it to avoid yearly compliances. They can apply for the closure of the company.

2. Winding up Voluntarily

A Nidhi company can be closed voluntarily when the members or shareholders of the company mutually decide to close all its operations. Naturally, the legal partnership of the company will be closed. However, the process requires a special resolution to be passed in the Board Meeting of the company.

3. Selling of Nidhi Company

The other way of closing a Nidhi company is to sell it along with all its property, ownership, and control over it to a prospective buyer. All the proprietorships and properties undertaken by the previous authority will be transferred to a new person who purchased them.

We have a dedicated CA/CS to process your request online. In the meantime, they will suggest collecting documents that are essential for applying. Then, we will file the Nidhi winding-up process flawlessly.

Package for Nidhi Company Winding UP