Introduction

Active company status is a designation granted by the Ministry of Corporate Affairs (MCA) that confirms a company’s legal and operational standing. For Nidhi Companies, which function under Section 406 of the Companies Act, 2013, and the Nidhi Rules, 2014, obtaining and maintaining active status is essential for continuing business operations, filing documents, and engaging with statutory bodies. Active status signals that the company is compliant, functioning properly, and fulfilling its regulatory responsibilities. This explanation outlines the key steps required for a Nidhi Company to gain active status.

Filing of Active Company Tagging Form (INC-22A)

To gain active status, a Nidhi Company must file Form INC-22A, also known as the ACTIVE (Active Company Tagging Identities and Verification) form. This form is part of the MCA’s initiative to ensure that companies are physically located at valid addresses and are functioning lawfully. The form must include details such as the registered office address, latitude and longitude,a photograph of the external building with nameplate, and internal premises showing at least one director signing documents.

Compliance with Annual Filings

Before filing Form INC-22A, the company must have filed all required annual compliance forms, including AOC-4 (financial statements), MGT-7 (annual return), NDH-1 (net-owned fund and membership compliance), and NDH-3 (half-yearly return). Any default in these filings may prevent submission of Form INC-22A, thereby delaying active status recognition.

Director KYC Completion

All directors of the Nidhi Company must have updated their Know Your Customer (KYC) information using DIR-3 KYC. Any non-compliance by even one director can affect the company’s eligibility to gain active status. Ensuring that all directors are compliant is a mandatory prerequisite.

Verification of Registered Office

The company’s registered office must be capable of receiving communications, and it must match the address provided in government records. A valid utility bill, rental agreement, or ownership document must be uploaded as proof. Discrepancies in address details can lead to rejection of the ACTIVE form.

Appointment of Key Personnel

To qualify for active status, the Nidhi Company must have a duly appointed statutory auditor whose details must be filed in Form ADT-1. Additionally, the details of the company’s managing director, CEO, or company secretary (if applicable) must be correctly filed and updated on the MCA portal.

Digital Signature and Certification

Form INC-22A must be digitally signed by a director or the company’s key managerial personnel using their Digital Signature Certificate (DSC). The form also needs to be certified by a practicing professional, such as a Chartered Accountant, Company Secretary, or Cost Accountant.

Acknowledgment and Active Tag

Once Form INC-22A is successfully filed and verified, the MCA updates the company’s Master Data with an ‘ACTIVE’ tag. This status confirms that the company is operational, compliant, and permitted to file various forms and documents going forward. The active status can be checked publicly through the MCA portal.

Conclusion

Achieving active company status is essential for a Nidhi Company to continue lawful operations and maintain credibility. It requires the company to be fully compliant with filings, maintain a valid registered office, update director KYC, and appoint key personnel. Filing Form INC-22A correctly and on time ensures transparency, regulatory recognition, and eligibility to conduct business without restrictions. Maintaining an active status is not just a regulatory formality but a sign of good governance and legal discipline.

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