1️⃣ Private Limited Companies: Ideal for small to mid-sized businesses, they require a minimum of 2 and a maximum of 200 shareholders. Shares can’t be publicly traded.

2️⃣ Public Limited Companies: Suited for large businesses, they require at least 7 shareholders, with no upper limit. Shares can be freely traded and they can raise funds from the public.

3️⃣ One Person Company (OPC): This structure allows a single person to own and manage a company, a boon for sole proprietors.

4️⃣ Limited Liability Partnership (LLP): This structure combines the benefits of partnerships and companies, limiting the liability of partners to their agreed contribution.

5️⃣ Section 8 Companies: Non-profit organizations can be set up as Section 8 companies, which can apply their profits, if any, or other income towards promoting their objectives.

Choosing the right company type aligns with your business goals and regulatory ease. Consult a legal expert for advice tailored to your specific needs.

Understanding NDH-4 Compliance and Current Status of Nidhi Companies

The NDH-4 form is a crucial compliance requirement for Nidhi Companies, mandated by the Nidhi (Amendment) Rules, 2019. Companies incorporated before or after these rules must file NDH-4, either for declaration as a Nidhi Company or for status updation. Several documents and details are needed, including Statutory Auditor’s Certificate, list of members, bank statement, among others. However, the compliance reality is starkly different.

A recent seminar in Kanpur, UP, unveiled an alarming compliance scenario among Nidhi Companies. As of January 2023, out of 3190 Nidhi Companies registered with ROC Kanpur, UP, only 70 have filed NDH-4, and a mere one has fully complied.

This raises pertinent questions – will Nidhi Companies face a ban? Will the Ministry be lenient with compliance in future? The answer to both is a resounding ‘No’. The Ministry’s stance is clear – if a company cannot meet its compliance, it casts serious doubts about its ability to return members’ deposits on time.

Given the less than encouraging past experiences of Nidhi Company members, the Ministry intends to maintain strict control over compliance. This underlines the importance of understanding and complying with NDH-4 filing requirements.

For professional advice on compliance matters, reach out to us at camahendergupta@gmail.com. Remember, compliance isn’t an option; it’s a responsibility.