Nidhi companies to submit a declaration before commencement of business: MCA

NOTIFICATION NO. G.S.R. 291(E), Dated 08.03.2022

MCA has notified amendment to the Companies (Incorporation) Rules, 2022. The second proviso has been inserted to Rule 12 providing that in case of incorporation of a Nidhi company, it shall be required to obtain a declaration from Govt. before the commencing the business and submit the declaration at the time of incorporation of the company. Form INC – 20A (Declaration for commencement of business), has been amended to capture details relating to the approval received from Govt. for commencement of the business such as a) the letter-number/registration number/approval issued under section 40 b) date of approval/registration.

FORM No.INC-32 (SPICe+) has also been amended. A declaration has been added to the Part B of the form to provide that the company shall not commence the business of Nidhi unless all the required approvals including the declaration to be issued under section 406 of the Act have been obtained from the Central Government.

Click Here To Read The Full Notification