ROC-Default in Annual filing
This query is : Resolved
10 June 2010
What is the best route for escaping penal provisions of Company Laws for a defunct Pvt Ltd Coy for not filing any ROC return since e-filing became compulsary ?
The Coy has no cash flow for over a decade even for ROC copliances !
Auth. Capital / Equity was 50L and the carried forward losses are more than twice the paid-up Equity!
The Coy has no cash flow for over a decade even for ROC copliances !
Auth. Capital / Equity was 50L and the carried forward losses are more than twice the paid-up Equity!
10 June 2010
Check out the latest scheme by ROC on Exit for defunct companies and Companies who made default in filling documents with ROC.
The detailed scheme can be downlaoded from the files section. Also a brief of the two schemes can be checked from the following article by one our friends on CCI.
https://www.caclubindia.com/articles/bumper-offer-from-mca-for-defaulting-companies-5778.asp
The detailed scheme can be downlaoded from the files section. Also a brief of the two schemes can be checked from the following article by one our friends on CCI.
https://www.caclubindia.com/articles/bumper-offer-from-mca-for-defaulting-companies-5778.asp
10 June 2010
Ministry of Corporate Affairs Introduces Company Law Settlement Scheme 2010 for Defaulting Companies.
Check this link:
https://www.caclubindia.com/news/ministry-of-corporate-affairs-introduces-company-law-settlement-scheme-2010-for-defaulting-companies-6353.asp
Check this link:
https://www.caclubindia.com/news/ministry-of-corporate-affairs-introduces-company-law-settlement-scheme-2010-for-defaulting-companies-6353.asp
10 June 2010
Which of the two schemes (EES or CLSS) be advisable for such defunct Pvt Ltd Coy.?
10 June 2010
In case, you want to close the company and strike off its name from the registar of companies, then go for Easy Exit Scheme.
Else, if you want to continue the work in the company, then file all the documents under CLSS scheme for making it regularize and then continue with the company in future.
Else, if you want to continue the work in the company, then file all the documents under CLSS scheme for making it regularize and then continue with the company in future.
26 December 2010
After opting for EXIT scheme, can the accumulated losses be availed of by M&A ?
22 July 2025
Here’s a concise overview addressing your queries about ROC defaults and exit options for a defunct Private Limited Company:
1. Dealing with ROC Defaults for Defunct Pvt Ltd Company
If the company has not filed any ROC returns (Annual Returns, Financial Statements) for years and is inactive (no cash flows, no operations), MCA has schemes to help regularize or exit such companies without heavy penalties.
2. Key Schemes by MCA (as of 2010 onwards)
A. Easy Exit Scheme (EES)
Designed for companies that want to close/strike off their name from ROC.
Benefits:
Waiver or reduction of penalties for non-filing.
Simplified and faster process for striking off.
Recommended if the company has no intention to continue business.
After striking off, the company ceases to exist legally, so no further filings.
B. Company Law Settlement Scheme (CLSS)
For companies wishing to regularize filings and continue operations.
Allows filing of pending documents by paying reduced or waived penalties.
After compliance, company resumes regular ROC filing requirements.
Recommended if you want to keep the company alive for future use.
3. Which Scheme to Choose?
If you want to shut down the company:
Opt for Easy Exit Scheme (EES) to strike off the company.
If you want to revive or continue operations:
Choose CLSS to file pending returns and clear defaults.
4. About Accumulated Losses Post-Exit
Once a company is struck off under EES, it ceases to exist.
Accumulated losses cannot be carried forward or availed by M&A because the legal entity is dissolved.
If preservation of accumulated losses is a concern for future use, consider revival via CLSS or normal compliance.
5. Useful Resources
CCI Article on MCA Schemes (Check if still accessible)
MCA official notifications on Easy Exit Scheme and CLSS.
1. Dealing with ROC Defaults for Defunct Pvt Ltd Company
If the company has not filed any ROC returns (Annual Returns, Financial Statements) for years and is inactive (no cash flows, no operations), MCA has schemes to help regularize or exit such companies without heavy penalties.
2. Key Schemes by MCA (as of 2010 onwards)
A. Easy Exit Scheme (EES)
Designed for companies that want to close/strike off their name from ROC.
Benefits:
Waiver or reduction of penalties for non-filing.
Simplified and faster process for striking off.
Recommended if the company has no intention to continue business.
After striking off, the company ceases to exist legally, so no further filings.
B. Company Law Settlement Scheme (CLSS)
For companies wishing to regularize filings and continue operations.
Allows filing of pending documents by paying reduced or waived penalties.
After compliance, company resumes regular ROC filing requirements.
Recommended if you want to keep the company alive for future use.
3. Which Scheme to Choose?
If you want to shut down the company:
Opt for Easy Exit Scheme (EES) to strike off the company.
If you want to revive or continue operations:
Choose CLSS to file pending returns and clear defaults.
4. About Accumulated Losses Post-Exit
Once a company is struck off under EES, it ceases to exist.
Accumulated losses cannot be carried forward or availed by M&A because the legal entity is dissolved.
If preservation of accumulated losses is a concern for future use, consider revival via CLSS or normal compliance.
5. Useful Resources
CCI Article on MCA Schemes (Check if still accessible)
MCA official notifications on Easy Exit Scheme and CLSS.
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