In News:

Recently, the Union Ministers for External Affairs and Labour and Employment launched the upgraded e-Migrate portal and mobile app, aimed at enhancing the migration experience for Indian workers seeking employment abroad. This initiative reflects the Indian government's commitment to ensuring the safety and welfare of its migrant workforce, aligning with global migration goals under the 2030 Agenda for Sustainable Development.

About e-Migrate Portal

The e-Migrate portal is an online platform designed to facilitate and manage the migration of Indian workers. It promotes safe and legal mobility channels by providing a transparent framework for migrant workers, including:

• Information Access: Comprehensive resources to help migrants understand the migration process.
• Documentation Support: Tools to assist with necessary paperwork.
• Helpline Support: A 24/7 multilingual helpline that addresses issues faced by workers, particularly in the Gulf region.
• Awareness Campaigns: Initiatives to educate workers about their rights and responsibilities abroad.

The upgraded version of the portal, launched in October 2024, features enhanced functionality to better serve Indian migrants.

Key Features of e-Migrate v2.0

1. Multilingual Helpline: Offers real-time support in multiple languages, ensuring that urgent issues are resolved efficiently.
2. Integration with Digilocker: Facilitates secure, paperless submission of essential documents, such as passports and employment contracts.
3. Social Security Net: Enhances social security measures for migrants, including insurance policies and partnerships with the State Bank of India for fee-free digital payment services.
4. Mobile App: Introduced for the first time, this app provides easy access to services, including a job search marketplace for overseas employment opportunities.
5. Rural Accessibility: Collaboration with Common Service Centres (CSCs) aims to expand immigration services to rural areas in local languages, making the platform more accessible to diverse populations.

Significance

The e-Migrate portal aligns with the United Nations' Sustainable Development Goal 10, which promotes orderly and responsible migration. By fostering safe migration practices, this initiative seeks to empower Indian workers and protect their rights while contributing to the country's international workforce.

In News:

The Registrar of Companies has imposed penalties on over two dozen Nidhi companies for breaches of the Companies Act, such as delayed financial filings and share allotment issues. Fines range from ?20,000 to ?12.5 lakh, with Sri Sathuragiri Nidhi receiving the highest penalty.

What is Nidhi Company?

A Nidhi Company is a unique NBFC regulated under the Companies Act, 2013, and the Nidhi Rules, 2014. Nidhi company signifies that these companies promote thrift and savings habits among their members by accepting deposits and providing loans. They primarily cater to their local communities and operate within a defined geographical area.

Requirements for Obtaining Nidhi Company Status:

Within One Year of Registration:

• Minimum Membership: A Nidhi company must have at least 200 members within one year of starting operations.
• Financial Strength: The company's net owned funds (equity share capital + free reserves - accumulated losses - intangible assets) must be ?10 lakh or more.
• Deposit Security: Unencumbered term deposits (deposits not pledged as security) must be at least 10% of the total outstanding deposits.
• Healthy Debt Ratio: The ratio of net owned funds to deposits should not exceed 1:20. This ensures the company has sufficient capital to back its deposit liabilities.

Compliance Filing:

If a Nidhi company meets all the above conditions within the first year, it must file form NDH-1 along with the prescribed fees within 90 days from the end of that financial year. The form needs to be certified by a practicing Chartered Accountant (CA), Company Secretary (CS), or Cost and Works Accountant (CWA).

Extension Option:

Companies that are unable to meet the requirements within the first year can apply for an extension of one additional financial year. To do so, they need to submit form NDH-2 to the Regional Director within 30 days from the end of the first financial year.

Strict Enforcement:

If a Nidhi company fails to meet the requirements even after the second financial year, it will be prohibited from accepting new deposits until it complies with the regulations. Additionally, it may face penalties for non-compliance.

Benefits of Nidhi Company Registration

Nidhi companies offer several advantages for entrepreneurs:

• Tax benefits: They can enjoy tax exemptions on their profits under certain conditions.
• Reduced regulatory burden: Compared to other NBFCs, Nidhi companies face less stringent regulations.
• Local focus: They cater to the specific financial needs of their communities, fostering local economic development.
• Enhanced credibility: Registration brings legitimacy and builds trust among members.

Eligibility for Nidhi Company Registration

For registration of Nidhi company, the following requirements must be met:

• Minimum members: A minimum of seven members are required at the time of incorporation.
• Minimum capital: The minimum paid-up capital must be Rs. 5 lakh.
• Business restrictions: Nidhi companies cannot undertake activities like issuing debentures or underwriting insurance.
• Profit distribution: They can only distribute a maximum of 20% of their net profit as dividend.