Section 560
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
13 September 2013
The Company was incorporated on 15th Nov 2012 and now the Company wants to strick off its name under section 560.
The Company has not carried on any business since incorporation and is now desirous to fill an application in FORM 61.
Now my query is would it be compulsory for the Company to get its Accounts Audited ?
The Company has not carried on any business since incorporation and is now desirous to fill an application in FORM 61.
Now my query is would it be compulsory for the Company to get its Accounts Audited ?
13 September 2013
Section 220 stipulates filing of copies of balance sheet, etc., with the concerned Registrar of Companies. Where it is established from the scrutiny of latest available balance sheet that the concerned company does not have adequate assets to meet the costs of liquidation, the course followed is to strike the name of the company off the Register of companies pursuant to section 560 of the Companies Act, 1956.
Yes, it is required to get audited.
Yes, it is required to get audited.
13 September 2013
Types of companies eligible to apply under section 560 of the Act
The following types of companies, which are not having any assets and liabilities as per the Financial Statement or Statement of Accounts drawn are eligible to apply subject to fulfillment of the conditions laid down hereinafter:—
(i) Companies that did not carry out any business at any time since their incorporation;
(ii) Companies that carried out some business activity but discontinued the same thereafter;
(iii) Non-Banking Financial Company (NBFC) as defined under section 45-I(f) of Reserve Bank of India Act, 1934:
(a) If such company is not registered with the RBI as NBFC and it has not carried out any operation or commercial activity since its incorporation;
(b) If such company is registered with the RBI as NBFC, 'no objection letter' is obtained from the RBI for availing the exit option and enclosed along with the application.
(iv) Collective Investment Management Company (CIMC) as defined in Regulation 2(1)(h) of Securities and Exchange Board of India (Collective Investment Companies) Regulations, 1999:
(a) if such Collective Investment Management Company is not registered with SEBI as CIMC and it has not carried out any operation or commercial activity since its incorporation;
(b) if such Collective Investment Management Company is registered with the SEBI, 'no objection letter' obtained from SEBI for availing the exit option and enclosed along with the application.
(v) Government Companies, which have no assets and liabilities and submit an approval letter issued by the concerned administrative ministry with the application.
Types of companies eligible to apply under section 560 of the Act
The following types of companies, which are not having any assets and liabilities as per the Financial Statement or Statement of Accounts drawn are eligible to apply subject to fulfillment of the conditions laid down hereinafter:—
(i) Companies that did not carry out any business at any time since their incorporation;
(ii) Companies that carried out some business activity but discontinued the same thereafter;
(iii) Non-Banking Financial Company (NBFC) as defined under section 45-I(f) of Reserve Bank of India Act, 1934:
(a) If such company is not registered with the RBI as NBFC and it has not carried out any operation or commercial activity since its incorporation;
(b) If such company is registered with the RBI as NBFC, 'no objection letter' is obtained from the RBI for availing the exit option and enclosed along with the application.
(iv) Collective Investment Management Company (CIMC) as defined in Regulation 2(1)(h) of Securities and Exchange Board of India (Collective Investment Companies) Regulations, 1999:
(a) if such Collective Investment Management Company is not registered with SEBI as CIMC and it has not carried out any operation or commercial activity since its incorporation;
(b) if such Collective Investment Management Company is registered with the SEBI, 'no objection letter' obtained from SEBI for availing the exit option and enclosed along with the application.
(v) Government Companies, which have no assets and liabilities and submit an approval letter issued by the concerned administrative ministry with the application.
13 September 2013
Types of companies, which are not eligible to apply under section 560 of the Act:
The following types of companies are not eligible to apply even though they are not having any business activities and also not having any assets and liabilities;
(i) Non-Banking Financial Company (NBFC) as defined under section 45-I(f) of Reserve Bank of India Act, 1934:
(a) if such company is not registered with the RBI as NBFC and it has carried out any operation or commercial activity after incorporation, irrespective that it has discontinued all the business activities since long;
(b) if such company is registered with the RBI as NBFC, and could not obtain and attach with the application a 'no objection letter' issued by the RBI for availing the exit option.
(ii) Collective Investment Management Company (CIMC) as defined in Regulation 2(1)(h) of Securities and Exchange Board of India (Collective Investment Companies) Regulations, 1999:—
(a) if such Collective Investment Management Company is not registered with SEBI as CIMC and it has carried out any operation or commercial activity since its incorporation, irrespective that it has discontinued all the business act ivies since long;
(b) if such Collective Investment Management Company is registered with the SEBI, and could not obtained and attach a 'no objection letter' received from the SEBI for availing the exit option.
(iii) Government Companies, which have no assets and liabilities but the approval letter have not been obtained from the concerned administrative ministry and attached with the application.
(iv) Company, which is registered under section 25 of the Companies Act, 1956.
(v) Company having any assets and liabilities.
(iv) Companies having any types of dues towards Income Tax/Sales Tax/Central Excise/Professional Tax/Nagar Nigam/Service Tax/Banks/Financial Institution or State Govt. Department/Authorities or any Local Authorities.
(vii) Company on which any prosecution for a non-compoundable offence is pending before any competent authority.
Types of companies, which are not eligible to apply under section 560 of the Act:
The following types of companies are not eligible to apply even though they are not having any business activities and also not having any assets and liabilities;
(i) Non-Banking Financial Company (NBFC) as defined under section 45-I(f) of Reserve Bank of India Act, 1934:
(a) if such company is not registered with the RBI as NBFC and it has carried out any operation or commercial activity after incorporation, irrespective that it has discontinued all the business activities since long;
(b) if such company is registered with the RBI as NBFC, and could not obtain and attach with the application a 'no objection letter' issued by the RBI for availing the exit option.
(ii) Collective Investment Management Company (CIMC) as defined in Regulation 2(1)(h) of Securities and Exchange Board of India (Collective Investment Companies) Regulations, 1999:—
(a) if such Collective Investment Management Company is not registered with SEBI as CIMC and it has carried out any operation or commercial activity since its incorporation, irrespective that it has discontinued all the business act ivies since long;
(b) if such Collective Investment Management Company is registered with the SEBI, and could not obtained and attach a 'no objection letter' received from the SEBI for availing the exit option.
(iii) Government Companies, which have no assets and liabilities but the approval letter have not been obtained from the concerned administrative ministry and attached with the application.
(iv) Company, which is registered under section 25 of the Companies Act, 1956.
(v) Company having any assets and liabilities.
(iv) Companies having any types of dues towards Income Tax/Sales Tax/Central Excise/Professional Tax/Nagar Nigam/Service Tax/Banks/Financial Institution or State Govt. Department/Authorities or any Local Authorities.
(vii) Company on which any prosecution for a non-compoundable offence is pending before any competent authority.
Querist : Anonymous
Querist :
Anonymous
(Querist)
13 September 2013
Thanks a lot sir for your feedback
13 September 2013
My Pleasure.
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