The Ministry of Corporate Affairs on 19th March 2020 has provided the time frame for Nidhi companies to apply to the Central Government for updation and declaration of Nidhi company status in Form NDH-4.
MCA sets the time frame for applying to Central Government in Form NDH-4 mentioned as below:-
1) Companies incorporated as Nidhi before Nidhi Amendment Rules, 2019 i.e. 15.08.2019 have to apply within a period of 1 year from the date of its incorporation or within 9 months of the Nidhi Amendment Rules i.e. 15.08.2019 whichever is later.
2) Companies incorporated as Nidhi on or after Nidhi Amendment Rules, 2019 i.e. 15.08.2019 have to apply within 60 days of expiry of one year from the date of incorporation or extended period (as granted by concerned Regional Director).
In case of failure to comply with the above requirements, a company shall not be allowed to file Form No. SH–7 (Notice to Registrar for any alteration of share capital) and Form PAS–3 (Return of Allotment).
Further, the companies and every officer of the company who is in default shall initially be punishable with fine which may extend to Rs. 5000/- and further fine in case of continuous violations.
Click here to read the Notification.
