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Process 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.

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.

Process to Closure of Nidhi Companies in India

A Few Advantages of Nidhi Company closure is mentioned below:

Productive Use of Resources

A Few Advantages of Nidhi Company closure is mentioned below:

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
  1. Draft a closure application and submit it to ROC (Register of Companies) by signing it through DSC (Digital Signature Certificate).
  2. The ROC has to approve the closure certificate
  3. On approval of ROC, he will issue a notice regarding the application of Nidhi company closure.
  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.
How We Work?
  1. Associates Collect Information
  2. Payment Is Done!
  3. Collect Documents From You
  4. Our CA/CS Apply Online For You
  5. Waiting for ROC Approval
  6. We Track Your Application
  7. Congrats! Nidhi Company Winding UP is Successful
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Frequently Asked Questions (FAQs)
Yes, it is mandatory to update the MCA database to show that the Nidhi Company is free from all legal ties with any company or organization.
Should I be required to submit a no-objection letter from the members?
Yes, more than 75% of members should agree to close the Nidhi Company and require their no objection letter.
Should I clear all debts or make the company neutral before striking off?
Yes, you should clear all the debts or make your funds neutral so that nobody can raise a complaint against Nidhi.
When can I close the Nidhi Company?
After starting the Nidhi Company, it must continue for at least one year. Then, you can file to close it.
What is the time to file a closure application for a Nidhi Company?
At the very beginning, the statement of Assets and Liabilities needs to be prepared with proper signing. Within 30 days of the statement, you can apply to ROC.
What is the Fast Track Exit (FTE) Scheme?
FTE is a faster Nidhi closure scheme. It is a mandatory process to apply for closing a Nidhi company.