Guidelines for filing of form NDH-4 (Application for Declaration/ Updation of status of Nidhis)

Guidelines for filing of form NDH-4 (Application for Declaration/ Updation of status of Nidhis)

Ministry of corporate affairs came up with some amendments in existing Nidhi Rules, 2014 through a Notification dated 01st july 2019. These rules called as Nidhi (Amendment) Rules, 2019 and came into force with effect from 15 August, 2019.

With this amendment asked public companies for declaring it as Nidhi and on being satisfied that the company meets the requirements under Nidhi rules 2014, shall notify the company as a Nidhi in the Official Gazette. For the purpose of above mentioned declaration Ministry came up with a new e form called Form NDH-4 (Form for filing application for declaration as Nidhi Company and for updation of status by Nidhis.)

A. Applicability of Form NDH 4

Every Nidhi company required to file a declaration through NDH-4 whether they incorporated before introduction of Nidhi (Amendment) Rules, 2019 or after.

B. Due date for filing of Form NDH 4

1. For the Nidhi incorporated under the Act on or after the commencement of the Nidhi (Amendment) Rules, 2019:

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:

2. For Nidhi incorporated under the Act, before the commencement of Nidhi (Amendment) Rules, 2019

Every Nidhi incorporated under the Act, before the commencement of Nidhi (Amendment) Rules, 2019, shall also get itself declared as such in accordance with rule 3A within a period of one year from the date of its incorporation or within a period of six months from the date of commencement of Nidhi (Amendment) Rules, 2019, whichever is later.

C. Mandatory Attachments with Form NDH 4

• Copy of resolution of the board of directors in support of the proposal of the company.
• Certificate signed by two directors regarding the number of members as on date of application (membership should not be less than 200)
• Certificate from the auditors of the company to the effect that the company has complied with the Nidhi Rules, 2014.
• Optional if any
• Below attachment shall be mandatory in case purpose is selected ‘Application for updation of status by Nidhis
• Copy of notification through which company was declared Nidhi under the Companies Act, 1956 or previous company law (where applicable)

S. Consequences of Non filing of Form NDH-4

Every Nidhi company whether incorporated after or before commencement of The Nidhi (Amendment) Rules, 2019, required to file Form NDH-4 and if it failed to file Form NDH-4 on or before prescribed due date, they will not be able to file Form No. SH-7 (Notice to Registrar of any alteration of share capital) and Form PAS-3 (Return of Allotment).