MCA Form NDH-2: Application to Regional Director for Various Approvals by Nidhi Companies

MCA Form NDH-2: Application to Regional Director for Various Approvals by Nidhi Companies. Section and Provision –
Section 406 of the Companies Act, 2013 and Rule 5(3) of the Nidhi Rules, 2014 
As per Rule 5 of the Nidhi Rules, 2014 there are requirements for Minimum Number of Members, Net Owned Fund etc
(1) Every Nidhi shall, within a period of one year from the date of its incorporation, ensure that it has-
(a) not less than two hundred members.
(b) Net Owned Funds of ten lakh rupees or more;
(c) unencumbered term deposits of not less than ten per cent. of the outstanding deposits as specified in rule 14; and
(d) ratio of Net Owned Funds to deposits of not more than 1:20.
Rule 5(3) -

If a Nidhi is not complying with clauses (a) or (d) of sub-rule (1) above, it shall within thirty days from the close of the first financial year, apply to the Regional Director in Form NDH-2 along with fee specified in Companies (Registration Offices and Fees) Rules, 2014 for extension of time.

The Regional Director may consider the application and pass orders within thirty days of receipt of the application.

Regional Director may extend the period up to one year from the date of receipt of application.

Purpose –

Form No. NDH-2 aims to simplify the process for filing the application to Regional Director for extension of time and approvals.

If a Nidhi Company is not complying with Rule 5(1) of the Nidhi Rules, 2014, it shall within thirty days from the close of the first financial year, apply to the Regional Director in Form No. NDH-2 for extension of time and the Regional Director may consider the application and pass orders within thirty days of receipt of the application.

Nidhi companies shall also file Form No. NDH-2 for the approval of Regional Director for the following rules:

Rule 6(d) - To acquire another company by purchase of securities or control

the composition of the Board of Directors of any other company in any

manner whatsoever or enter any arrangement for the change of its management.

Rule 10(3) - To open more than three branches within the district or any branch outside the district.

Rule 14 - In cases of unforeseen commitments, temporary withdrawal for the purpose of repayment to depositors.

Key Information –

The Form is available on MCA Version 3 portal.

Form No. NDH-2 shall be processed in non-STP mode.

Document Required-

Audited financial statements (last available)

List of all members with PAN and complete residential address along with amount of deposit accepted from each member

Optional attachments, if any

To be digitally signed by-
Designation DIN of the director; DIN or PAN of the manager or CEO or CFO; or membership number of company secretary
Certificate by practicing professional – 
The webform shall be certified by a chartered accountant (in whole-time practice) or cost accountant (in whole-time practice) or company secretary (in whole-time practice) by digitally signing the webform.
Timeline- 
The Web Form shall be filled within a period of 30 days from the closure of First Financial Year.
Important Checkpoint while filling Form –

Please ensure the signatories shall have an approved DIN or valid PAN / membership number as applicable.

Please ensure that the DSC of the signatory is registered on MCA portal against the DIN / PAN / Membership number as provided in the webform.

Please ensure that DIN/PAN/membership number entered in the signatory field is associated with the CIN under the selected designation.

Please ensure that DIN is not flagged for disqualification of director.

Please ensure that SRN of Form MGT-14 is duly approved.

MCA Help-Kit

Section and Provision –

Section 406 of the Companies Act, 2013 and Rule 5(3) of the Nidhi Rules, 2014

As per Rule 5 of the Nidhi Rules, 2014 there are requirements for Minimum Number of Members, Net Owned Fund etc

(1) Every Nidhi shall, within a period of one year from the date of its incorporation, ensure that it has-

(a) not less than two hundred members.

(b) Net Owned Funds of ten lakh rupees or more;

(d) ratio of Net Owned Funds to deposits of not more than 1:20.

Rule 5(3) -

If a Nidhi is not complying with clauses (a) or (d) of sub-rule (1) above, it shall within thirty days from the close of the first financial year, apply to the Regional Director in Form NDH-2 along with fee specified in Companies (Registration Offices and Fees) Rules, 2014 for extension of time.
The Regional Director may consider the application and pass orders within thirty days of receipt of the application.
Regional Director may extend the period up to one year from the date of receipt of application.

Purpose –

Form No. NDH-2 aims to simplify the process for filing the application to Regional Director for extension of time and approvals.
If a Nidhi Company is not complying with Rule 5(1) of the Nidhi Rules, 2014, it shall within thirty days from the close of the first financial year, apply to the Regional Director in Form No. NDH-2 for extension of time and the Regional Director may consider the application and pass orders within thirty days of receipt of the application.
Nidhi companies shall also file Form No. NDH-2 for the approval of Regional Director for the following rules:
Rule 6(d) - To acquire another company by purchase of securities or control
the composition of the Board of Directors of any other company in any
manner whatsoever or enter any arrangement for the change of its management.
Rule 10(3) - To open more than three branches within the district or any branch outside the district.
Rule 14 - In cases of unforeseen commitments, temporary withdrawal for the purpose of repayment to depositors.

Key Information –

The Form is available on MCA Version 3 portal.
Form No. NDH-2 shall be processed in non-STP mode.

Document Required-

Audited financial statements (last available)
List of all members with PAN and complete residential address along with amount of deposit accepted from each member
Optional attachments, if any

To be digitally signed by-

Designation DIN of the director; DIN or PAN of the manager or CEO or CFO; or membership number of company secretary

Certificate by practicing professional –

The webform shall be certified by a chartered accountant (in whole-time practice) or cost accountant (in whole-time practice) or company secretary (in whole-time practice) by digitally signing the webform.

Timeline-

The Web Form shall be filled within a period of 30 days from the closure of First Financial Year.