A Company which has not started any business after its incorporation or not carrying on any business for a period of two years (Defunct Company) can make application to winding up the business and strike off its name from the register of companies
Overview – Winding up or Closing of Defunct Company
Once registered with the Registrar of Companies (ROC), Ministry of Corporate Affairs (MCA), it is mandatory for the Company to file the regular returns with Registrar of Companies and other statutory authorities in time.
If the Company is defaulted in filing of regular returns with the Registrar of Companies, the Company and its Director are liable to face the penalties and prosecution process as per Companies Act 2013 also, the companies are liable for winding up by Registrar of Companies.
If the promoters are not intending to keep the company alive, they can file an application for closure of the company by removing its name from the register of the companies maintained by MCA.
There is no relaxation for compliance filing even if ‘Company is Not carrying any Business’. So, it is very important to ensure the filing in time or removal of Company’s name from the Registrar of Companies to avoid penalties and prosecution process.
The Following Companies can make application strike off its name from the register of companies as a Defunct Company.
– Companies that are not started any business within one year of its incorporation
– Companies that are not carrying on any business or operation for a period of two immediately preceding financial years
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