Complete Guide to Nidhi Company Closure
Is your Nidhi Company inactive? Or are you finding it difficult to meet the 200-member requirement? Closing a Nidhi Company is a strategic move to save on annual compliance costs and protect directors from disqualification. At Companify, we handle the end-to-end strike-off process, ensuring a smooth exit from the MCA records.
CHECKLIST OF DOCUMENTS REQUIRED FOR CLOSURE
Before you begin, ensure you have these essentials ready. Missing even one can lead to a rejection from the ROC.
Indemnity Bond: Notarized bond (Form STK-3) signed by all directors.
Affidavit: Sworn by directors (Form STK-4) confirming the company has no liabilities.
Statement of Accounts: Audited by a Chartered Accountant (not older than 30 days).
Special Resolution: Certified copy showing 75% member consent.
Bank Closure Certificate: Proof that all company bank accounts are officially closed.
NOCs: No Objection Certificates from any secured creditors (if applicable).
Closure of Nidhi Company Fees
The closer fees for a Nidhi company are ?19,999. Every legally registered business must wind up its operations in accordance with the law. In this article, let’s discuss the winding up of a Nidhi Company.
What is the Meaning of Nidhi Company Closure?
Closure, legally known as "Strike-Off," is the process of removing a company's name from the Register of Companies maintained by the MCA. Once a Nidhi Company is closed, it ceases to exist as a legal entity, and the directors are relieved of future filing obligations.
Eligibility for Closure of Nidhi Company
To apply for a voluntary strike-off under Section 248, a Nidhi Company must satisfy the following:
Inactivity: No business operations for the last two years.
Nil Liabilities: All member deposits (FDs/RDs) must be repaid with interest.
Loan Recovery: All loans provided to members must be recovered in full.
No Pending Litigation: No active cases in any court or with the Income Tax department.
The Process of Closure of Nidhi Company
Board Meeting: Pass a resolution to close and authorize a director to file the application.
Extinguish Liabilities: Settle all deposits and pay off any remaining creditors.
Extraordinary General Meeting (EGM): Obtain approval from at least 75% of members via a Special Resolution.
Filing Form MGT-14: File the Special Resolution with the ROC within 30 days.
Filing Form STK-2: The final application for strike-off, accompanied by all required documents.
Public Notice: The ROC publishes a notice in the Official Gazette to invite objections.
Final Strike-Off: If no objections arise within 30 days, the company is officially dissolved.
Different Methods to Close Your Nidhi Company
Voluntary Strike-Off (Fast Track Exit): The most common and cost-effective method for inactive companies with no assets/liabilities.
Voluntary Liquidation: Used if the company has assets to distribute. This involves appointing a liquidator and is a more complex, time-consuming process.
Selling the Company: Instead of closing, you can transfer management to new promoters. Companify can assist in the "Nidhi Company Transfer" process.
