De-Registration of Inactive Companies

Ministry of Corporate Affairs04-August, 2011 18:30 IST

De-Registration of Inactive Companies 

   

                The Minister of State in the Ministry of Corporate Affairs Shri R.P.N. Singh today informed the Lok Sabha that whether Government has enumerated or identified such registered companies which are inactive, dormant and have been in such mode for at least ten years.            

               

Replying to a written question the minister said that the The Ministry had announced two schemes, namely

(i) `Easy Exit Scheme, 2010' (w.e.f.     26.05.2010 to 31.08.2010) and

(ii) `Easy Exit Scheme, 2011' (w.e.f. 1.1.2011 to 30.04.2011) for those companies which were not carrying on  any business activity or operation on or after 1st April, 2008.

From 03.07.2011, the Ministry has come out with Guidelines for `Fast Track Exit Mode' for simplified exit of defunct companies, which have not commenced their business since their incorporation or are not carrying on any business for the last  one year.

               

As per present policy of the Ministry, such companies, which have not filed their Annual Returns and Balance Sheets for last three consecutive years or more are identified as dormant companies.