Published on: 12 May 2023 at 11:44 IST
The Ministry of Corporate Affairs (MCA) has tightened the rules for companies seeking to be removed from the Register of Companies (RoC) by requiring them to first file overdue financial statements and annual returns.
Experts have praised the new regulations, which supplement other recently implemented provisions, as a deterrent to unscrupulous operators.
The MCA’s notification specifies that a company cannot apply for removal from the register unless it has filed all overdue financial statements under section 137 of the Companies Act and annual returns under section 92 up to the end of the financial year in which it ceased operations.
Even if a company receives a notice from the RoC to initiate the removal process, it must still file all outstanding financial statements and annual returns before submitting its application.