MCA: Nidhi Companies to seek Central Govt. declaration before commencing business

MCA amends the Companies (Incorporation) Rules, 2014, inter alia inserts a proviso under Rule 12 (application for incorporation of companies) specifying that in case of a Company being incorporated as a Nidhi, the declaration by the Central Government u/s 406 of the Companies Act shall be obtained by the Nidhi before commencing the business and a declaration in this behalf shall be submitted at the stage of incorporation by the company, w.e.f. April 8, 2022;

Further, notifies revised format for Form No. INC-20A (Declaration for commencement of business), and adds a declaration at the end of Form No. INC-32 (SPICe+), for the company to declare that it shall not commence the business of Nidhi, unless all the required approvals including the declaration to be issued u/s 406 of the Act have been obtained from the Central Government: MCA

Team – Intellex Strategic Consulting Pvt Ltd,,,

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