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Nidhi Company Closure

Generally, closing of a Nidhi Company is called strike off or company closure. Company closure is mentioned under Companies (Removal of Names of Companies) Rules, 2016 which are managed by section 248 of Companies Act, 2013. If you are not involved in any business task and not even performing Compliance as essential according to the law, it is suggested to close your Nidhi Company.

How to close Nidhi Company in India?

A company closure is filed under form STK 2 (previous form was called FTE) with the government fees of Rs 5000 along with a number of important documents. However this is vital to note the cases where closure should be filed. Filing of a company closure can be done with following :

Paying all Liabilities - The first step includes repaying all the liabilities of the company and asking for written no objection certificate (NOC) from them. Nidhi Company has a lot of deposits and therefore NOC has to be taken from every member of the Company.

Require 75% Consent - This is a new condition which is to be fulfilled for Nidhi Limited Company closure. For winding up the company, you require at least 75% consent of the shareholders/members of the company. Besides, one director is required to be notified to take care of all the responsibility regarding company closure.

Make Application - Once consent is given, next step is to make application and file the same with the Registrar of Companies.

Reasons to close Nidhi Company

If you are not operating a company and not even satisfying the law then it is suggested to file Nidhi Company closure to prevent being in default. An obsolete company, fake company and non operative companies can file for Company closure to prevent late penalties and others.

Documents needed for Nidhi Company Closure

Compulsory Documents

Latest statement of accounts

Indemnity bond notarized by Directors (STK 3)

Statement of accounts includes assets & liabilities of the company

Audited by Chartered Accountant : -

Special Resolution or Consent of 75% Members

Affidavit in Form STK 4 by all Company

Optional Documents (where applicable)

PAN Card of the Company

Closure Certificates of Bank Account

Advantages of Striking off Nidhi Companies

Saves you from penalties regarding non-compliance

It helps saving cost of compliance every year

No more directors in default

No more concern for record keeping

Trouble-free and helpful

Useless IT requirements can be prevented

Ways for closing a Nidhi Company

Defunct Company - A defunct company is nothing but a company that cannot offer compliance in order to match the legal needs also the company that is not making returns and other filings in order to be legal on the yearly basis. The defunct company can be free from the entire legal knot it includes but it differs as the Tribunal is offered on the basis of its failure to perform any transactions monetarily and so on.

Voluntary Striking of Company - This includes a situation where the members inside the company want to close all the operations and external legal partnership the company would have. Here the main factor includes passing special resolution in the board.

Selling a Nidhi Company

Selling off a Nidhi Company is similar to a voluntary closure, but the different thing includes the control and the total members of the present ownership team are disconnected off from the attachment with the company and the same offered to a new interested buyer and all the properties and legal attachments the company has would be transferred to the individual who is buying the company.

Procedure

A Company closure is filed under Form STK 2 (previous form was FTE) with the government fees of Rs 5000 and some essential documents. Though it is significant to note the cases where closure can be filed. Filling of a Company closure can be performed with the following steps :

Digital Signature Certificate should be processed

Preparing and submitting application by the professional

Submitting required documents completed in all phases

20 to 25 working days depending on processing time of the government

Eligibility criteria for Fast Closure of A Company

The company applying under FTE (Fast Track Exit) should not possess any asset and liability.

The company should not have started any business action or operation since incorporation or minimum 1 year is required to be passed since last business action or procedure.

The Company has appropriately filed all the financials to the Registrar of Companies, till the time of its closure.

Frequently Asked Questions

Ques: How One Click Business Solutions can help doing company closure?

Our professionals help you closing your company with registration within a short turnaround time, depending on processing time of Registrar of companies.

Ques: What refers to Nidhi Limited Company?

A Nidhi company belongs to the non-banking Indian finance sector and is accepted under section 406 of the Companies Act, 2013. Their basic business includes borrowing and lending money between the members. They are also called benefit funds, permanent fund, mutual benefit company and mutual benefit funds.

Ques: Is ROC filing compulsory before making application for striking off company?

Yes, it is an obligatory process to execute as the Ministry of Corporate Affairs database requires to be updated that the company doesn't have any legal ties.

Ques: What is known as fundamental eligibility criteria to close a company?

The company should at least be 1 year old regarding its nature of functioning while applying for closure.

Ques: What refers to the time limit for filing documents with ROC for closure of a Nidhi Company?

The Form dully filled needs to be filed with Registrar of Compliance office within 30 days from the date of Signing of the Statement of Assets and Liabilities.

Ques: What refers to Fast Track Exit (FTE) scheme?

Fast Track Exit (FTE) is a company closure scheme started by Ministry of Corporate Affairs for simple and quicker closure of Company. This is a must while closing a company.

Ques: What refers to closure of Nidhi Company?

Generally, closing of a Nidhi Company is called as company closure or skrike off. Company closure is mentioned under new provisions of Companies (Removal of Names of Companies) Rules, 2016 which are controlled by section 248 of Companies Act, 2013. If you are not involved in any business activity and not even performing Compliance as necessary under the law, it is suggested to close your Nidhi Company.

It is easy to close a Nidhi Company by filing Form STK 2 (past form was known as FTE) with the government fees of Rs 5000 and some required documents.

Ques: What is the process for closure of Nidhi Company in India?

A Nidhi Company can be closed simply by filing Form STK 2 (previous form was called FTE) with the government fees of Rs 5000 and some essential documents.

Ques: What reason is there behind closure of Nidhi Company?

Closure of Nidhi Company is quite logical step to avoid being in default while you are not involved in any business activity and not even performing compliances as par the law.

Ques: What are the necessary documents for closure of Nidhi Company?

Required documents :

Indemnity Bond notarised by Directors (STK 3)

You do not need to get digital signature

Statement of accounts includes assets & liabilities of the company of which audit has been done by Chartered Accountant

Up-to-date statement of accounts

Special resolution or consent of minimum 75% members

Affidavit in Form STK 4 by each company

PAN Card of the Company

Closure Certificates of Bank Account

Ques: What is known as MCA (Ministry of Corporate Affairs)?

MCA denotes Ministry of Corporate Affairs that contains the database to keep and also support the complaint rules.



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