As per rule Nidhi Amendment Rules, 2019, neither you have obtained registration of NIDHI Company nor you have
filed NDH-4 (which is mandatory) whereas you have collected the deposits. Without having registration no company can
operate as a NIDHI company. Please explain.
Rule 3A of Nidhis Rules, 2014 deals with the requirement of filing of Form NDH-4, This Rule was effective vide notification dated July 01, 2019 issued by Ministry of Corporate Affairs of India.
The rule states :-
The Central Goverrrment, on receipt of application (in.Form NDH-4 along with fee thereon) of a public company for declaring it as Nidhi and on being satisfied that the company meets the requirements under these rules, shall notify the company as a Nidhi in the official Gazette:
Provided that a Nidhi incorporated under the Act on or after the commencement of the Nidhi (Amendment) Rules, 2019 shall file Form NDH-4 within sixty days from the date of expiry of :-
(a) one year from the date of its incorporation or
(b) the period up to which extension of time has been granted by the Regional Director under sub-rule (3) of rule 5:
Provided further that nothing in the first proviso shall prevent a Nidhi from filing Form NDH-4 before the period referred therein:
Provided also that that in case a company does not comply with the requirements of this rule, it shall not be allowed to file Form No. SH-7 (Notice to Registrar of any alteration of share capital) and Form PAS-3 (Return of Allotment).]
Filing of E-Form NDH-4 is a procedural requirement which need to be followed by Every Nidhi Company. This E-Form is purely for the purpose of ensuring compliance/eligibility of Nidhi Company which are required to be made within one year of incorporation of Nidhi Company.
There is no such provision in the Act or rule which states that Nidhi Company cannot commence business till the period this E-Form NDH-4 is not filed. E-Form INC-20A is for declaration of commencement of business and no company can commence its business unless INC-20A is filed with ROC.
Further, we want to inform you that this is a new requirement and earlier all the Nidhi companies were functioning without any NDH-4.
Further, ICSEVA Nidhi Limited was incorporated on August 11, 2020. And pursuant to the aforesaid rule 3A, company can file E-Form NDH-4 till October 10, 2021, i.e. Within 60 days from the expiry of one year of incorporation.
1. What is private placement under Section 42 of the Companies Act?
2. What are the key provisions and requirements of Section 42 regarding private placement?
3. Can private placement be undertaken by all types of companies, or are there any restrictions?
4. What is the maximum number of persons to whom securities can be offered through private placement?
5. Are there any eligibility criteria or qualifications for investors participating in a private placement?
6. What is the process for conducting a private placement and issuing securities under Section 42?
7. Are there any prescribed timelines or statutory compliances that need to be followed during a private placement?
8. Is it mandatory to appoint a separate compliance officer for overseeing private placement activities?
9. What are the disclosure and reporting requirements for companies undertaking private placement?
10. Are there any restrictions or conditions on the use of funds raised through private placement?
11. Can private placement be made to existing shareholders or only to new investors?
12. Are there any specific penalties or consequences for non-compliance with the provisions of Section 42?
13. Can the company engage intermediaries such as brokers or merchant bankers for facilitating private placement?
14. Are there any exemptions or relaxations available under Section 42 for certain types of transactions or companies?
15. How does private placement differ from public offerings or rights issues?
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Please reply on my Query if any one can help :
What is the process for registering an LLP under the Companies Act?
What are the minimum and maximum numbers of partners required to form an LLP?
Can foreign nationals or entities be partners in an LLP?
Are there any restrictions on the business activities that can be undertaken by an LLP?
What documents are required for the registration of an LLP?
Is there a requirement for a registered office address for an LLP?
Are there any specific qualifications or eligibility criteria for becoming a partner in an LLP?
What is the procedure for changing the partners or adding new partners to an existing LLP?
Are LLPs required to maintain any statutory records or books of accounts?
What are the annual compliance requirements for an LLP?
Is it possible to convert an existing partnership firm into an LLP?
What are the advantages of registering a business as an LLP compared to a private limited company?
Are LLPs required to pay any specific taxes or comply with any tax-related obligations?
How long does it typically take to register an LLP under the Companies Act?
What is the role and responsibility of a designated partner in an LLP?
Can you provide a step-by-step guide on how to fill out and submit the FILLIP form?
Who are authorized to sign and submit the necessary Form DIR-3 with the Registrar of Companies?
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