• Notification Date: 16-05-2023
• Notification No: N/A

MCA Introduces New Norms for Firms Closure

The Ministry of Corporate Affairs (MCA) introduced fresh conditions for business firms desiring de-registrations with the Registrars of Companies (ROC), according to a media report on Friday. It said the company applying for the removal of their names from the ROC will be liable to file financial statements and annual returns to cease business operations. 

Following the changed condition removal of names cannot be applied unless an organisation files its overdue financial statements and overdue annual returns up to the financial year ending in which it is ceased to carry its business operations. 

Further, in case a company files the application after the Registrar’s action, it will mandate to file all pending financial statements and all pending annual returns prior to this. 

Meanwhile, the government is trying to quicken the companies’ closure process and has set up the centre for processing accelerated corporate exit with effect from 1 May.