Regarding section 560(2) of co act 1956
This query is : Resolved
06 July 2013
SR
we have received a inquiry latter u/s 560(2) from registrar. please give me format how to answer this query. presently our company is properly operated and annual return has been submitted already.Please advise
Thank you
we have received a inquiry latter u/s 560(2) from registrar. please give me format how to answer this query. presently our company is properly operated and annual return has been submitted already.Please advise
Thank you
06 July 2013
Please take a print of 'company master data' from MCA21 Portal. If the said 'master data' is updated as you said, file this before the ROC along with a covering letter seeking to drop the proceedings initiated vide the referred communication.
06 July 2013
If our company is not properly carring business and have not a single tranction been taken, then what should be reply to ROC,so that my company not become defunct company. Please advise.
20 July 2025
Regarding your query on Section 560(2) of the Companies Act, 1956, here’s a brief explanation and a suggested approach for replying to the Registrar of Companies (ROC) inquiry:
What is Section 560(2)?
It deals with inquiry by the ROC into the company’s affairs.
If the ROC has reasons to believe a company is not carrying on business or operations or is not functioning properly, it may issue an inquiry notice under this section.
The company is required to reply to the inquiry to avoid being classified as a defunct company or facing further action.
How to reply if your company is properly carrying on business:
Download the Company Master Data from the MCA21 portal.
Prepare a covering letter stating:
The company is actively carrying on business.
Annual returns and financial statements have been filed regularly.
All compliances are up to date.
Attach the company master data printout with the letter.
Request the ROC to drop the inquiry proceedings based on the above facts.
Suggested format of the reply letter (if business is active):
[Company Letterhead]
Date: ___________
To
The Registrar of Companies
[ROC Address]
Subject: Reply to Inquiry Notice under Section 560(2) of the Companies Act, 1956
Sir/Madam,
Ref: Your inquiry letter dated [Date of ROC letter]
With reference to the above, we would like to inform you that [Company Name], CIN: [CIN], is actively carrying on its business operations. The company has been regularly filing its Annual Returns and Financial Statements with your office and all other statutory compliances have been duly complied with.
Please find enclosed herewith a copy of the company master data as obtained from MCA21 portal, which reflects the updated status of the company.
In view of the above, we request you to kindly drop the proceedings initiated under Section 560(2) against our company.
Thanking you.
Yours faithfully,
For [Company Name]
[Authorized Signatory]
[Name & Designation]
[Company Seal]
If the company is not carrying on business or has no transactions:
You need to honestly disclose this to ROC.
You can state that the company is not currently carrying on business but it is intended to be active in the near future.
You may also state the company is not a defunct company and confirm that the company will comply with all necessary provisions.
Alternatively, you can initiate striking off the company if no business is intended.
Suggested format if no business carried on:
[Company Letterhead]
Date: ___________
To
The Registrar of Companies
[ROC Address]
Subject: Reply to Inquiry Notice under Section 560(2) of the Companies Act, 1956
Sir/Madam,
Ref: Your inquiry letter dated [Date of ROC letter]
In response to the above inquiry, we would like to inform you that [Company Name], CIN: [CIN], has not carried on any business or operations since its incorporation / during the last financial year.
However, the company is not a defunct company and intends to commence business operations shortly. We confirm that the company is complying with all applicable statutory requirements including filing of Annual Returns and Financial Statements.
We request you to kindly take the above on record and consider our submission.
Thanking you.
Yours faithfully,
For [Company Name]
[Authorized Signatory]
[Name & Designation]
[Company Seal]
What is Section 560(2)?
It deals with inquiry by the ROC into the company’s affairs.
If the ROC has reasons to believe a company is not carrying on business or operations or is not functioning properly, it may issue an inquiry notice under this section.
The company is required to reply to the inquiry to avoid being classified as a defunct company or facing further action.
How to reply if your company is properly carrying on business:
Download the Company Master Data from the MCA21 portal.
Prepare a covering letter stating:
The company is actively carrying on business.
Annual returns and financial statements have been filed regularly.
All compliances are up to date.
Attach the company master data printout with the letter.
Request the ROC to drop the inquiry proceedings based on the above facts.
Suggested format of the reply letter (if business is active):
[Company Letterhead]
Date: ___________
To
The Registrar of Companies
[ROC Address]
Subject: Reply to Inquiry Notice under Section 560(2) of the Companies Act, 1956
Sir/Madam,
Ref: Your inquiry letter dated [Date of ROC letter]
With reference to the above, we would like to inform you that [Company Name], CIN: [CIN], is actively carrying on its business operations. The company has been regularly filing its Annual Returns and Financial Statements with your office and all other statutory compliances have been duly complied with.
Please find enclosed herewith a copy of the company master data as obtained from MCA21 portal, which reflects the updated status of the company.
In view of the above, we request you to kindly drop the proceedings initiated under Section 560(2) against our company.
Thanking you.
Yours faithfully,
For [Company Name]
[Authorized Signatory]
[Name & Designation]
[Company Seal]
If the company is not carrying on business or has no transactions:
You need to honestly disclose this to ROC.
You can state that the company is not currently carrying on business but it is intended to be active in the near future.
You may also state the company is not a defunct company and confirm that the company will comply with all necessary provisions.
Alternatively, you can initiate striking off the company if no business is intended.
Suggested format if no business carried on:
[Company Letterhead]
Date: ___________
To
The Registrar of Companies
[ROC Address]
Subject: Reply to Inquiry Notice under Section 560(2) of the Companies Act, 1956
Sir/Madam,
Ref: Your inquiry letter dated [Date of ROC letter]
In response to the above inquiry, we would like to inform you that [Company Name], CIN: [CIN], has not carried on any business or operations since its incorporation / during the last financial year.
However, the company is not a defunct company and intends to commence business operations shortly. We confirm that the company is complying with all applicable statutory requirements including filing of Annual Returns and Financial Statements.
We request you to kindly take the above on record and consider our submission.
Thanking you.
Yours faithfully,
For [Company Name]
[Authorized Signatory]
[Name & Designation]
[Company Seal]
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