MCA notifies Second Amendment Rules with respect to Striking off Company’s name

The Ministry of Corporate Affairs has recently issued another notification no 354(E) on May 10, 2023 in connection to impose certain requirements on Companies seeking to apply for removal of its name from the Register of Companies and to submit various overdue financial statements, annual returns before such application. As per the said notification, the MCA has come up with another amendment in Companies (Removal of the name of the Companies from the Register of Companies) Rules 2016.

Now, these rules will be regarded as Companies (Removal of Name of Companies from the Register of Companies) Second Amendment Rules, 2023.

According to these second amendment rules 2023, if a business has ceased activities, it must file its overdue financial statements and annual reports up to the year in which the company's operations  are discontinued before applying for a striking off.

Further, if a company

•  Has not started its business within one year of its incorporation or

•  Has remained inactive without any business or operations for two consecutive financial years and the company has not applied for the status of a dormant company,

•  The subscribers to the memorandum have not paid the subscription which they had undertaken to pay at the time of incorporation of a company and a declaration to this effect has not been filed within one hundred and eighty days of its incorporation.

• The company is not carrying on any business or operations, as revealed after the physical verification.

The Registrar can then send a notice to the Company and all the directors of their intention to remove the Company's name from the register of companies and request that they send their representations along with copies of the relevant documents within 30 days of the date of notice. In this case, if the  Company plans to file an application for striking off, it must also submit all pending or overdue financial statements and annual reports before submitting the application for striking off.

Furthermore, if the company fails to respond or is unable to provide sufficient representations and relevant documents in response to the registrar's notice, the registrar may strike off such a company's name from the Register of Companies by publishing a public notice in the Official Gazette, and then in that  case, the company will be barred from filing an application under these striking off rules.

Refer following link for more details:

https://www.mca.gov.in/bin/dms/getdocument?mds=NayTkLw9l%252BWyjFrBKAUtDQ%253D%253D&type=open

On April 17, 2023, the MCA has originally issued a notification vide GSR 298(E) to amend various rules in relation to striking off a Company’s name from the Register of Companies. Refer below link to know more about relevant Forms and process of the striking off the Company:

https://www.aagamshahca.com/news-detail/MCA-notifies-amendment-in-striking-off-a

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