India's one of the highest-rated legal tax and compliance guidance platform.
4.9 out of 5
(8521)
Verified
Siddhu ManojFounder & CEO of Two-LYP Computations Pvt. Ltd.
“Incorporating my Startup with IncorpX was an incredibly smooth and hassle-free experience. The team was highly professional, guiding us every step of the way with clear communication and prompt support. The registration process was fast, and every detail was handled with precision and accuracy. Highly recommend IncorpX for anyone starting a business.”
Abhishek LohaniDirector at Lohani Learnings
“Company is good and service is also smooth. I used their compliance service and the response was timely with no delay and price are also convenient. They are always available to cater your need.”
Chandan Kr. ChaudharyFounder of Creative Minds
“I am very satisfied with the team of IncorpX for providing the top notch services. Team of IncorpX was giving the update on daily basis was one of the best thing which I experience in Corporate. keep doing it. Thank you!”
Jayavijaya SJFounder of Agro Farms
“Don't think twice.Got my company incorporates here. Tbh very impressed by the quality of service provided by this team. Very organized and friendly team. Had a smooth and peaceful experience. Timely regular updates were provided by the team. Overall a great experience.”
Anoop KrishnanFounder of EIGHTH DAY FORGE
“It's rare to find a service provider who makes the process feel personal - IncorpX absolutely did. From day one, they patiently explained every detail without any jargon, making it easy to understand and stress-free. There was zero chasing, no delays-just efficient, smooth execution all the way through. I felt supported, heard, and confident at every step of registering my company EIGHTH DAY FORGE (OPC) Private Limited. Thanks to Mr. Sriram and his wonderful team.”
Ramesh LankeFounder of EKnal Technologies
“IncorpX made the entire registration process for our company, EKnal Technologies, smooth and stress-free. Their team was professional, efficient, and incredibly supportive from start to finish. Highly recommend them to any founder looking for a reliable partner in their business journey! Special shoutout to Sriram and Aswin-your support, clarity, and responsiveness made the whole process incredibly smooth.”
700+
Businesses Incorporated Every Month
1000+
Ratings Trusted by 2000+ Clients
250+
Professional Network
WHY CHOOSE US?
Expert Legal Team
Experienced legal experts in company formation and corporate law.
Fast Turnaround
Kickstart your venture with efficient company setup, generally processed within a week.
Dedicated Support
Personal manager by your side, every step of the way and beyond.
Complete Documentation
We handle all paperwork and ensure full legal compliance.
Business Growth Tools
Free business resources to fuel your company's success from day one.
24/7 Customer Service
Round-the-clock assistance for all your concerns.
Ready to Close Your Nidhi Company?
Get expert assistance for Nidhi company closure with complete MCA compliance - starting from ₹7,999.
HERE'S HOW IT WORKS
1. Fill the Form
Simply fill the above form to get started.
2. Call to discuss
Our startup expert will connect with you & complete legalities.
3. Close Your Nidhi Company
Get professional assistance with Nidhi Company strike-off and winding up.
SIMPLE & TRANSPARENT PRICING
MOST POPULAR
Nidhi Company Closure Package
₹7999 /one-time
Complete within 7 days
7-day turnaround 100% guaranteed
Form STK-2 Application Filing
Board Resolution Drafting
EGM Special Resolution
Indemnity Bond from Directors
Director Affidavit Preparation
Statement of Assets & Liabilities
Member Deposit Settlement Support
Pending Annual Return Filing
GST Cancellation Assistance
Expert CA/CS Support
*Government fees are additional and vary based on company structure
4.9/5 based on 1000+ reviews
Money back guarantee
Secure payment
Top rated service
IncorpX Prime
An all-inclusive solution for startups and expanding enterprises seeking a streamlined, compliant incorporation process.
Key Benefits
Personalised support from dedicated incorporation specialists.
Application prepared and filed within 2 days.
24/7 customer assistance.
Important Notes
We strive to register your preferred business name whenever feasible.
Alternative name suggestions are provided if the preferred name is not approved.
Package includes first-year compliance services: auditor appointment, annual filings, and related obligations.
Closing a Nidhi Company in India is a specialized legal process that removes the company from the records of the Ministry of Corporate Affairs (MCA) and terminates its legal existence. Nidhi Companies, governed by the Nidhi Rules, 2014 under the Companies Act, 2013, are mutual benefit societies that accept deposits from members and lend to them. Due to their unique nature involving member deposits, Nidhi company closure requires careful handling.
Under the Companies Act, 2013, a Nidhi Company can be closed through two primary routes: Voluntary Strike-Off (Section 248) by filing Form STK-2 with the Registrar of Companies, or Compulsory Winding Up through the National Company Law Tribunal (NCLT). The voluntary strike-off is the most common method for Nidhi companies that have repaid all member deposits and have no outstanding liabilities.
Unlike regular Private Limited Companies, Nidhi Company closure involves additional complexity due to member deposits. Before initiating closure, all fixed deposits and recurring deposits must be repaid to members, all loan recoveries completed, and a proper statement of settlement prepared. The company must also ensure compliance with all Nidhi-specific regulations.
At IncorpX, we provide end-to-end Nidhi Company closure services - from clearing pending compliances and member settlements to obtaining the final strike-off order. Our team of expert CAs and CSs ensures that your Nidhi company is closed legally, protecting your DIN and future business interests.
What is Nidhi Company Strike-Off?
Strike-Off of a Nidhi Company is a voluntary dissolution process under Section 248 of the Companies Act, 2013. It allows Nidhi companies that are no longer carrying on business or operations to apply for removal of their name from the Register of Companies maintained by the Registrar of Companies (RoC).
A Nidhi Company is a type of Non-Banking Financial Company (NBFC) that operates on the principle of mutual benefit. It accepts deposits only from its members and provides loans exclusively to them. Before closure, the company must ensure complete settlement of all member transactions, including deposits and outstanding loans.
The strike-off process is initiated by filing Form STK-2 with the RoC. This form must be accompanied by supporting documents including board resolution, special resolution, indemnity bond, affidavit, statement of assets and liabilities, and proof of deposit settlement. Once filed, the RoC publishes a public notice giving 30 days for any objections.
Key Characteristics of Nidhi Company Strike-Off:
Complete Member Settlement:
All member deposits must be repaid and all outstanding loans recovered before initiating closure.
Nidhi Compliance:
All Nidhi-specific compliances including NDH-1, NDH-2, NDH-3 forms must be filed up to date.
No Pending Liabilities:
The company must have no outstanding debts, assets, or ongoing business operations at the time of application.
Reversible:
A struck-off Nidhi company can be revived within 20 years by filing an application with NCLT.
Did You Know?
Nidhi Companies that fail to file Form NDH-4 (Declaration of Compliance) within 90 days of incorporation, or do not meet the minimum member and deposit requirements, are particularly vulnerable to MCA action. Proactive closure is essential to avoid director disqualification and accumulating penalties.
Reasons to Close a Nidhi Company
Business owners decide to close their Nidhi Companies for various legitimate reasons. Understanding your situation helps in choosing the right closure approach:
Membership Challenges
Unable to meet the minimum 200 member requirement within the prescribed timeline, making it difficult to operate as a valid Nidhi company.
Net Owned Fund Issues
Failure to maintain the minimum Net Owned Fund (NOF) of ₹20 lakhs or meet the deposit ratio requirements under Nidhi Rules.
Compliance Burden
The extensive compliance requirements including NDH forms, quarterly returns, and annual filings becoming too burdensome for a small operation.
Director/Member Disputes
Irreconcilable differences among promoters or members making it impossible to continue operations or make collective decisions.
Low Deposit Mobilization
Unable to attract sufficient deposits from members or low lending activity making the business model financially unviable.
Business Pivot
Promoters want to focus on other business opportunities and wish to formally close the Nidhi company rather than leaving it dormant.
Methods to Close a Nidhi Company
The Companies Act, 2013 provides two main routes for closing a Nidhi Company. The choice depends on the company's status, member deposits, assets, liabilities, and compliance history:
Feature
Voluntary Strike-Off (STK-2)
Winding Up by NCLT
Governing Section
Section 248 of Companies Act, 2013
Section 271-274 of Companies Act, 2013
Initiated By
Company (Directors & Shareholders)
Company, Creditors, Members, or Registrar
Suitable For
Nidhi companies with all deposits repaid
Companies with unsettled deposits or disputes
Authority
Registrar of Companies (RoC)
National Company Law Tribunal (NCLT)
Time Required
3-6 months
1-3 years
Cost
Moderate (₹8,000-₹20,000)
High (₹75,000+)
Complexity
Simple administrative process
Complex legal proceedings
Liquidator Required
No
Yes, appointed by NCLT
Member Deposit Settlement
Must be completed before application
Handled by liquidator from company assets
Conditions
No operations for 2 years, all deposits repaid, no liabilities
Unable to pay deposits, just and equitable grounds
Revival Possible
Yes, within 20 years through NCLT
No, dissolution is final
Recommended Approach
For most Nidhi Companies that have settled member deposits, Voluntary Strike-Off (STK-2) is the recommended approach. It's faster, more affordable, and less complex than NCLT winding up. IncorpX specializes in this process and handles all formalities on your behalf.
Requirements for Nidhi Company Closure
Before applying for strike-off, your Nidhi Company must meet the following prerequisites:
Company has not carried on business for two years preceding the application
All member deposits (Fixed Deposits, Recurring Deposits) fully repaid
All outstanding loans recovered from members
All annual returns (AOC-4, MGT-7, NDH-1, NDH-3) filed up to date
All income tax returns filed and no pending tax dues
No pending legal proceedings or member complaints
Company bank accounts closed or have nil balance
GST registration cancelled (if applicable)
Documents Required for Nidhi Company STK-2 Filing:
Document
Description
Purpose
Board Resolution
Resolution passed by Board of Directors approving closure
Authorizes the company to apply for strike-off
Special Resolution
Resolution passed by shareholders (75% majority) in EGM
Shareholders' consent for voluntary dissolution
Indemnity Bond
Executed by all directors on non-judicial stamp paper
Directors indemnify against any future claims including member deposits
Affidavit
Sworn affidavit by directors before notary/magistrate
Verification of facts including deposit settlement
Statement of Assets & Liabilities
Certified statement as on the date of application
Confirms company has no assets or liabilities
Deposit Settlement Statement
Statement showing all member deposits have been repaid
Proof that no member deposits are outstanding
NOC from Members
No objection certificate from members (if required)
Member consent for company dissolution
Latest Financial Statements
Audited financial statements of the company
Verification of company's financial position
Step-by-Step Process for Nidhi Company Closure
Here's how IncorpX helps you close your Nidhi Company through the voluntary strike-off route:
Step 1: Initial Assessment & Member Deposit Review
Our experts analyze your company's status, review pending compliances, check member deposit records, outstanding loans, and identify prerequisites that need to be addressed before initiating closure.
Step 2: Settle Member Deposits & Recover Loans
All member deposits (Fixed Deposits, Recurring Deposits) are repaid. Outstanding loans from members are recovered. A comprehensive settlement statement is prepared documenting all transactions.
Step 3: Clear Pending Compliances
We file all pending annual returns (AOC-4, MGT-7), Nidhi-specific forms (NDH-1, NDH-3), income tax returns, GST returns, and any other statutory filings to bring the company to fully compliant status.
Step 4: Close Bank Accounts & Dispose Assets
Company bank accounts are closed after ensuring nil balance. Any remaining assets are disposed of or distributed to shareholders as per their shareholding ratio.
Step 5: Conduct Board Meeting
A board meeting is convened to pass a resolution authorizing the company to apply for strike-off and to call an Extraordinary General Meeting (EGM) for shareholder approval.
Step 6: Pass Special Resolution in EGM
An EGM is held where shareholders pass a special resolution (75% majority) approving the voluntary strike-off of the Nidhi company under Section 248.
Step 7: Prepare Closure Documents
We prepare all required documents including indemnity bond, affidavit, statement of assets and liabilities, deposit settlement statement, and compile all supporting documents for filing.
Step 8: File Form STK-2 with RoC
Form STK-2 is filed electronically with the Registrar of Companies along with all supporting documents and prescribed government fees.
Step 9: Final Strike-Off Order
After the 30-day public notice period and if no objections are raised, the company name is struck off from the register, and a dissolution notice is published in the Official Gazette.
Close your Nidhi Company legally with IncorpX!
Consequences of Not Closing Your Nidhi Company
Abandoning a Nidhi Company without proper closure has serious legal and financial repercussions, often more severe than regular companies due to the deposit-taking nature:
Consequence
Description
Impact
Director Disqualification
Under Section 164(2), directors of defaulting Nidhi companies are disqualified
Cannot be appointed as director in any company for 5 years
Member Complaints
Unrepaid deposits lead to member complaints to RoC and NCLT
Criminal prosecution and personal liability of directors
Penalty Accumulation
Late filing fees of ₹100 per day per form including NDH forms
Penalties can run into lakhs of rupees over years
RBI/MCA Action
Nidhi companies face stricter scrutiny from regulatory authorities
Investigation, show-cause notices, and prosecution
Criminal Liability
Fraud allegations if member deposits are not repaid
Imprisonment and heavy fines under Companies Act and IPC
Credit Score Impact
Directors' personal CIBIL scores get negatively affected
Difficulty in obtaining personal loans, credit cards, etc.
DIN Deactivation
Director Identification Numbers get deactivated by MCA
Cannot act as director in any other company
Important Warning
Nidhi Companies with outstanding member deposits face much stricter consequences than regular companies. Members can file criminal complaints for misappropriation of deposits. Proper settlement and voluntary closure is absolutely essential to protect directors from criminal prosecution.
Why Choose IncorpX for Nidhi Company Closure?
Complete Compliance: We clear all pending filings including NDH forms before initiating closure.
Transparent Pricing: No hidden charges, clear breakdown of all costs involved.
Deposit Settlement: Expert guidance on proper member deposit settlement procedures.
Expert Team: Dedicated CA/CS professionals with Nidhi company experience.
End-to-End Service: From compliance clearance to final strike-off order.
DIN Protection: We ensure your Director Identification Number remains active.
FAQs on Nidhi Company Closure
Closing a Nidhi Company involves several legal steps and special considerations due to member deposits. Here are answers to the most frequently asked questions about Nidhi company closure:
You can close your Nidhi company through Voluntary Strike-Off by filing Form STK-2 with the Registrar of Companies under Section 248. This requires repaying all member deposits, clearing pending compliances, passing resolutions, and submitting prescribed documents.
For voluntary strike-off, all member deposits must be fully repaid. If deposits cannot be settled, you may need to go through NCLT winding-up process where a liquidator will settle member claims from company assets.
The voluntary strike-off process typically takes 3-6 months. However, the overall timeline depends on how quickly member deposits can be settled and pending compliances cleared.
At IncorpX, Nidhi company closure starts from ₹7,999 plus government fees. Additional costs may include pending compliance filing fees, late fees (if applicable), and stamp duty for indemnity bond.
NDH forms (NDH-1, NDH-2, NDH-3, NDH-4) are Nidhi-specific compliance forms. Yes, all pending NDH forms must be filed before applying for strike-off to ensure the company is fully compliant.
If the company is closed properly through voluntary strike-off, directors' DINs remain active. However, if closure is due to RoC suo motu action or member complaints, directors get disqualified under Section 164(2).
Yes, members can file objections during the 30-day public notice period. If any member claims unpaid deposits or dues, the RoC may reject the strike-off application until the matter is resolved.
A Nidhi Company must have minimum 200 members. Failure to meet this requirement is often a reason for closure. For strike-off, member deposit settlement is the key concern regardless of member count.
Yes, a struck-off Nidhi company can be revived within 20 years by filing an application with NCLT under Section 252. Valid reasons must be demonstrated, and all pending fees and penalties must be paid.
Leaving a Nidhi company inactive with unrepaid deposits can result in criminal prosecution, director disqualification, accumulating penalties, and member complaints leading to serious legal consequences.
Form STK-2 is the application form for voluntary strike-off of a company under Section 248 of the Companies Act, 2013. For Nidhi companies, it must include additional documentation proving member deposit settlement.
The basic process is similar, but Nidhi companies have additional requirements including member deposit settlement, Nidhi-specific compliance filing (NDH forms), and higher scrutiny due to their deposit-taking nature.
