Nidhi Company - Amendment in Companies Incorporation Rules

 

GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS NOTIFICATION

New Delhi, the 16^th July, 2024

G.S.R. (E). In exercise of the powers conferred by sub-sections (1) and (2) of section 469 of the Companies Act 2013 (18 of 2013), the Central Government hereby makes the following rules further to amend the Companies (Incorporation) Rules, 2014, namely:

1. (1) these rules may be called the Companies (Incorporation) Amendment Rules, 2024

(2) They shall come into force on the date of their publication in the Official Gazette

2. In the Companies (Incorporation) Rules, 2014, in rule 8A, in sub-rule (1)-

(i) in clause (p), the word "Nidhi", shall be omitted,

(i) clause (v) shall be omitted

 

Manoj Pandey

Additional Secretary to the Government of India

The earlier provisions as follows:

In the Companies (Incorporation) Rules, 2014, in rule 8A, in sub-rule (1)(i) in clause(p): the proposed name include words such as ‘Insurance’, ‘Bank’, ‘Stock Exchange’, ‘Venture Capital’, ‘Asset Management’, ‘Nidhi’, ‘Mutual Fund’, etc., unless a declaration is submitted by the applicant that the requirements mandated by the respective regulator, such as IRDA, RBI, SEBI, MCA, etc. have been complied with by the applicant;

In the Companies (Incorporation) Rules, 2014, in rule 8A, in sub-rule (1)(i) in clause(V): the proposed name of a Nidhi company under the Act does not have the last words “Nidhi Limited” as a part of its name.

With the effect of the above amendment the proposed company can have the last words with Nidhi Limited as a part of its name.

Declaration IRDA, RBI, SEBI, MCA, etc. is need not be submitted by the applicant at the time of name reservation.

i.e. Mr. X is deisired to float a Nidhi company. Before 16^th July 2024 the applicant has to submit a declaration from respective authority and the name of the company should not have Nidhi as a part.

The company name should be ABC limited.

After the amendment Mr. X need not to submit any declaration and he can use the words Nidhi Limited as part of its Name.

The company name can be ABC Nidhi Limited.

The Companies Incorporation Amendment Rules 2024