Companies wishing to get their names struck off from the Register of Companies (RoC) will now have to file overdue financial statements and annual returns first, as the ministry of corporate affairs (MCA) has tightened the rules.
Experts said the new rules, on top of other provisions issued recently for this purpose, would discourage fly-by-night operators.
According to a notification by the MCA, a company won’t file an application for the removal of its name unless it has filed overdue financial statements under section 137 of the Companies Act and overdue annual returns under section 92 up to the end of the financial year in which it stopped carrying out its operations.
If a company intends to file such an application where the RoC has already slapped a notice to initiate the process of removal of its name, it will still have to file all pending financial statements and annual returns.
