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CLOSING a newly registered company

Sagar (Article trainee) (24 Points)

27 March 2011

One of my friends wants to close a company which they had registered in feb 2011. Kindly, guide me through the procedure of doing so.

Note: The company was created just 2 months back.

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5 Replies

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 27 March 2011

https://www.mca.gov.in/Ministry/latestnews/CircularEES_3dec2010.pdf

Sudhir Garg (Service) (236 Points)
Replied 28 March 2011

Dear Mr Sharma

As per my understanding, EES is not applicable on such newly incorporated companies. If we refer the definition part of EES, defunct company is categorised as company before 31-03-2008 (or something like that).

Regards- Sudhir

CS Ankur Srivastava (Company Secretary & Compliance Officer) (17858 Points)
Replied 28 March 2011

“defunct company” means a company registered under the Companies Act, 1956 which is not carrying over any business activity or operation on or after the 1st April, 2008 and includes a company which has not raised its paid up capital as provided in sub sections (3) and (4) of section 3 of the Companies Act, 1956;

Applicability of Easy Exit Scheme: -

(a) Any “defunct company” which has active status on Ministry of Corporate Affairs portal may apply under EES, 2010 in accordance with the provisions of this Scheme for getting its name strike off from the Register of Companies;

(b) Any defunct company which is a Government Company shall submit ‘No Objection Certificate’ issued by the concerned Administrative Ministry or Department or State Government along with the application under this Scheme;

(c) The purpose of the Scheme is to allow eligible companies to avail of this opportunity to exit from the Register of Companies after fulfilling the requirements laid down herewith and the decision of the Registrar of Companies in respect of striking off the name of company shall be final.

Scheme not applicable to certain companies: -

The Scheme does not cover the following companies namely:-

(a) listed companies;

(b) companies registered under section 25 of the Companies Act, 1956;

(d) companies where inspection or investigation is ordered and being carried out or yet to be taken up or where completed prosecutions arising out of such inspection or investigation are pending in the court;

(e) companies where order under section 234 of the Companies Act, 1956 has been issued by the Registrar and reply thereto is pending or where prosecution if any, is pending in the court;

(f) companies against which prosecution for a noncompoundable offence is pending in court;

(g) companies accepted public deposits which are either outstanding or the company is in default in repayment of the same;

(h) company having secured loan ;

(i) company having management dispute;

(j) company in respect of which filing of documents have been stayed by court or Company Law Board(CLB) or Central Government or any other competent authority;

(k) company having dues towards income tax or sales tax or central excise or banks and financial institutions or any other Central Government or State Government Departments or authorities or any local authorities.

Sudhir Garg (Service) (236 Points)
Replied 28 March 2011

Mr Ankur

Thanks for your above quotation.

But what does it concludes??

Regards- Sudhir

CS Ankur Srivastava (Company Secretary & Compliance Officer) (17858 Points)
Replied 28 March 2011

It means that the company must be not in operation on or after 1st April, 2008. Therefore, it is implied that the company must be in existence before 1st April, 2008.

Therefore, newly incorporated company does not comes under this Scheme.