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The article explains the closure of Nidhi Company. Like every other Company, the Nidhi Company can be wound up by its members. Nidhi Company is characterized as an entity where the members come together and pool their funds. They do the business of lending and borrowing of deposits with other members. A Nidhi Company is a part of the Non-Banking Financial Institution (NBFC) and is registered under section 406 the Companies Act, 2013.
A Nidhi company has the objective to cultivate the habit of savings amongst its members, or receiving deposits and lending to its members only for mutual benefits.
Nidhi Company’s closure means the dissolving the Company registered under the Companies Act, 2013[1]. The closure of Nidhi Company is mentioned under section 248(2) of the Act. This section read along with the Company (removal of companies’ names from the companies’ registrar) Rules, 2016 speaks about closure of Nidhi Company.
The Nidhi Company can be dissolved because of several reasons:
The procedure for the closure of Nidhi Company is as follows:
The requisite documents for the closure of Nidhi companies are as follows:
The following are the advantages on Closure of Nidhi Company:
There are various methods of the closure of Nidhi Company as:
It can be concluded that the Closure of Nidhi Company has to be performed legally as per the Companies Act, 2013. The closure is essential to break the legal ties if there has been a non- continuance of business performance. The closure has legal compliances which have to be submitted to ROC. The Nidhi company registration and closure or winding has to be in accordance with the Companies Act.
Read our article:An Overview on Rules Regarding Nidhi Company
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