1. If a company has filed its annual returns throughout its life (ie last 3 years also) but has not done any business (inoperative since incorporation) is it eligible under EES-2011?
2. If a company was incorporated after April 1 , 2008, is it eligible under EES-11?
If anyone has any experience or knowledge in this regard pls help. The circular does not clarify these doubts.
yes your company can apply for exit scheme 2011.
Even if the company incorporated after 1.4.2008 and has not done any business activity can apply under this scheme.
Need help, write us: ca.ysmehta @ icai.org
Hi, what if the company alloted shares due to standing share application after 01.04.2008, will it be treated as doing business?
Thanks
No. Business activity means activity related to main object clause of MOA. Allotment of shares against standing application is not business activity.
sir,
Dear Mr. Gangadhararao,
the EES 2011 is not applicable to a company incorporated on or after 01.04.2008. As per the Scheme only defunct company may apply for the exit scheme 2011 (The Scheme)and the Scheme defined the "Defunct Company" as under:
"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 Comapanies Act, 1956.
It means the company must be incorporated before 1st April 2008 only then it may comply the conditions of not carrying over any business activity or operation on or after the 1st April 2008.
Best Regards
CS ashwini kumar
CAclubindia
