{"id":4795,"date":"2020-03-13T12:22:33","date_gmt":"2020-03-13T06:52:33","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=4795"},"modified":"2022-09-10T14:10:34","modified_gmt":"2022-09-10T08:40:34","slug":"closing-of-nidhi-company","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/closing-of-nidhi-company\/","title":{"rendered":"Closing of Nidhi Company; A Detailed Process"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Nidhi companies are registered as Non-Banking Finance Sector Company. Nidhi companies are registered to provide benefits to its members. The main function of the Nidhi Company is to borrow and lend money between the members. <\/p>\n\n\n\n<p>Closing of Nidhi Company can be due to multiple reasons arising from external to internal causes. Closing of Nidhi Company defines that company would not be functional anymore. However, it is advised to follow the proper compliance and procedure defined for closing Nidhi Company. <\/p>\n\n\n\n<p>In this blog, we will discuss various procedures for closing of Nidhi Company.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/closing-of-nidhi-company\/#What_do_you_mean_by_Closing_of_Nidhi_Company\" >What do you mean by Closing of Nidhi Company?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/closing-of-nidhi-company\/#What_are_the_advantages_of_closing_of_Nidhi_Company\" >What are the advantages of closing of\nNidhi Company?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/closing-of-nidhi-company\/#What_are_the_Documents_required_for_the_closing_of_Nidhi_Company\" >What are the Documents required for\nthe closing of Nidhi Company?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/closing-of-nidhi-company\/#What_are_the_ways_to_close_the_Nidhi_Company\" >What are the ways to close the Nidhi\nCompany?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/closing-of-nidhi-company\/#What_is_the_procedure_of_Closing_of_Nidhi_Company\" >What is the procedure of Closing of\nNidhi Company?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/closing-of-nidhi-company\/#What_are_the_criteria_of_fast_closure_of_Nidhi_Company\" >What are the criteria of fast closure\nof Nidhi Company?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/corpbiz.io\/learning\/closing-of-nidhi-company\/#Take_Away\" >Take Away<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_do_you_mean_by_Closing_of_Nidhi_Company\"><\/span>What do you mean by Closing of Nidhi Company?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The process of closing of Nidhi Company is known as Strike Off or Company Closure. Closing of Nidhi Company is done under newly notified rules, 2016. These rules are governed by <strong>section 248 of Companies Act, 2013<\/strong><sup><a href=\"https:\/\/www.mca.gov.in\/content\/mca\/global\/en\/acts-rules\/ebooks.html\"><strong>[1]<\/strong><\/a><\/sup><strong> . <\/strong><\/p>\n\n\n\n<p>It\u2019s recommended by the government, that if no business activity is being carried nor the compliances are being performed by the Nidhi Company, it&#8217;s better to close the Nidhi Company. Here, Nidhi Company requires special skills adequately to ease you from all the responsibilities.&nbsp; <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_advantages_of_closing_of_Nidhi_Company\"><\/span>What are the advantages of closing of\nNidhi Company? <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>If\nNidhi Company is not considered to be functional and profitable, along with\nthis if members of Nidhi Company are not willing to continue, it\u2019s better to\nclose it down.<\/p>\n\n\n\n<p><strong><em>Below\nmentioned are few advantages which Nidhi Company can get on closing;<\/em><\/strong><\/p>\n\n\n\n<ul><li><strong>Compliance Free;<\/strong> Once Nidhi Company files its application for closing, company needs not to keep track over <a href=\"https:\/\/corpbiz.io\/learning\/online-compliances-for-a-nidhi-company-overview\/\"><strong>Nidhi Company compliances<\/strong><\/a>. However, the company would dissolve anyway. <\/li><li>&nbsp;<strong>No Penalty; <\/strong>After Closure process is imitated, company shall not get worried about the state to pay penalty fee for undressed causes. <\/li><li><strong>No Record keeping required; <\/strong>After submitting the closure documents, there is a requirement for keeping and maintaining the documents. <\/li><li><strong>Save cost of yearly compliance; <\/strong>Once the company gets closed, it saves the cost of yearly compliance filing. <\/li><li><strong>No Director\u2019s Default;<\/strong> After <a href=\"https:\/\/corpbiz.io\/nidhi-company-registration\"><strong>Nidhi Company Registration<\/strong><\/a>, company has to mandatorily perform certain compliances. In this case, if company fails in filing the annual documents to ROC, company along with its director are held liable for non \u2013 compliance. However, once the company is into its winding process, annual filing is not necessary until and unless ROC specify.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_Documents_required_for_the_closing_of_Nidhi_Company\"><\/span>What are the Documents required for\nthe closing of Nidhi Company?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>Following are the mandatory documents\nrequired for closing of Nidhi Company;<\/em><\/strong><\/p>\n\n\n\n<ul><li>Indemnity Bond notarized by\nDirectors (STK 3);<\/li><li>Latest &nbsp;Statement of Accounts;<\/li><li>Statement of Accounts furnishing\ndetails assets &amp; liabilities of Company Audited by Chartered Accountant. <\/li><li>&nbsp;STK&nbsp; 4\nform attached in Affidavit by every company;<\/li><li>Special Resolution or Consent of\n75% Members;<\/li><\/ul>\n\n\n\n<p><strong><em>Optional Documents (If applicable)<\/em><\/strong><\/p>\n\n\n\n<ul><li>Pan card of company<\/li><li>Bank Account Closure Certificate <\/li><\/ul>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/nidhi-company-into-a-full-fledged-nbfc-company\/\">Is it Possible to Convert a Nidhi Company into a Full-Fledged NBFC Company?\n<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_ways_to_close_the_Nidhi_Company\"><\/span>What are the ways to close the Nidhi\nCompany?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li><strong>Defunct Company;<\/strong> A that cannot offer compliance in order to match the legal needs, along with where company is not making a return and other filings, in order to be legal on a yearly basis is known as Defunct Company.<\/li><\/ul>\n\n\n\n<ul><li><strong>Winding up Voluntarily; <\/strong><\/li><\/ul>\n\n\n\n<p>Winding up Voluntary means, a\nsituation where a member of Nidhi Company wishes to close external and internal\noperations of the company, along with closing its external legal partnership\nthat a company would have. This process includes the passing of a special\nresolution in the board meeting.<\/p>\n\n\n\n<ul><li><strong>Selling of Nidhi Company; <\/strong><\/li><\/ul>\n\n\n\n<p>The other way to close the Nidhi Company is selling it off. The process is similar to Voluntary Closure; however, it included the control and the total member of present ownership is taken and is offered to the new interested buyers. All the properties and legal attachments will be transferred to the person who is buying the Nidhi Company. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_procedure_of_Closing_of_Nidhi_Company\"><\/span>What is the procedure of Closing of\nNidhi Company?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li><strong>DSC and Application Filling- <\/strong>The first step is drafting of application\nand DSC to proceed further. <\/li><li><strong>Notice by ROC &#8211;<\/strong>After filing the closure application, ROC\nshall approve the application and further send notice. <\/li><li><strong>Finally Closed \u2013 <\/strong>During the closing process, if no one files\nan objection, company name is strike off, and company gets closed.<\/li><li>Processing\nof Digital signature certificate&nbsp; should\nbe processed;<\/li><li>Drafting\nand submission of application shall be done only by the qualified person.<\/li><li>All\nthe completed documents shall be required to be submitted in all phases. <\/li><li>The\nprocess required 20 to 25 working days, rest depends upon the processing time\nof government.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_criteria_of_fast_closure_of_Nidhi_Company\"><\/span>What are the criteria of fast closure\nof Nidhi Company?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>The\ncompany applying under FTE (Fast Track Exit) should not possess any asset and\nliability.<\/li><li>The\ncompany should not have started any business action or operation since\nincorporation or minimum 1 year is required to be passed since last business\naction or procedure.<\/li><li>The\ncompany has appropriately filed all the financials to the Registrar of\nCompanies, till the time of its closure.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Take_Away\"><\/span>Take Away <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The process of closing of Nidhi Company is simple if taken all necessary steps. We at <a href=\"https:\/\/corpbiz.io\/\"><strong>Corpbiz<\/strong><\/a> will help you in closing of Nidhi Company by taking all required measure which is mandatory for the process.&nbsp;&nbsp; <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/incorporation-procedure-nidhi-company-india\/\">What is Nidhi Company? Know it\u2019s Incorporation Procedure<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Nidhi companies are registered as Non-Banking Finance Sector Company. Nidhi companies are registered to provide benefits to its members. The main function of the Nidhi Company is to borrow and lend money between the members. Closing of Nidhi Company can be due to multiple reasons arising from external to internal causes. Closing of Nidhi Company [&hellip;]<\/p>\n","protected":false},"author":9,"featured_media":4815,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[31,385],"tags":[396],"acf":{"service_id":"211"},"authorName":"Shailza Sharma","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2019\/10\/IMG-20190927-WA0001-150x150-22.jpg","authorDescription":"Miss Shailza Sharma, BA. LLB graduate from Himachal Pradesh University. She holds an experience of 2.5 years in various Legal companies and organizations.","postViews":13498,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/4795"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=4795"}],"version-history":[{"count":27,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/4795\/revisions"}],"predecessor-version":[{"id":48583,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/4795\/revisions\/48583"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/4815"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=4795"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=4795"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=4795"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}