{"id":19765,"date":"2020-11-19T11:56:08","date_gmt":"2020-11-19T06:26:08","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=19765"},"modified":"2020-11-19T11:56:09","modified_gmt":"2020-11-19T06:26:09","slug":"procedures-to-cancel-company-registration-under-companies-act-2013","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/procedures-to-cancel-company-registration-under-companies-act-2013\/","title":{"rendered":"Know the Procedures to Cancel Company Registration under Companies Act, 2013"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Every business has to survive through the hardship and apparent obstacles to earn profit irrespective of their size or nature of work. But sometimes even the well-planned strategies couldn\u2019t save the businesses from being hindered by adversity that occurs unexpectedly. and in such cases business left with no other option than cancel company registration. <\/p>\n\n\n\n<p>Individuals can commence a business with a\ngoal they wish to deploy and oftentimes when things don\u2019t work as expected;\nthey might have to be close due to several reasons which include insufficient\nfunds, poor management, and zero working capital. <\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/procedures-to-cancel-company-registration-under-companies-act-2013\/#How_to_go_about_Revocation_of_Company_Registration_under_Companies_Act_2013\" >How to go about Revocation of Company Registration under\nCompanies Act, 2013?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/procedures-to-cancel-company-registration-under-companies-act-2013\/#Fast_Track_Exit_FTE_mode_What_is_it_all_about\" >Fast Track Exit (FTE) mode: What is it all about?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/procedures-to-cancel-company-registration-under-companies-act-2013\/#What_are_the_Documents_Required_to_Cancel_Company_Registration\" >What are the Documents\nRequired to Cancel Company Registration?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/procedures-to-cancel-company-registration-under-companies-act-2013\/#The_Dormant_status_What_is_it_all_about\" >The Dormant status: What is it all about?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/procedures-to-cancel-company-registration-under-companies-act-2013\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_to_go_about_Revocation_of_Company_Registration_under_Companies_Act_2013\"><\/span>How to go about Revocation of Company Registration under\nCompanies Act, 2013?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Once an organization is registered there are various compliance requirements that need to be met and there is an equal expenditure to cater. It is not feasible for someone to procure additional costs for the company which is not operating or unable to reap the projected revenue. Thus; it would be beneficial for the business and its members to cancel <a href=\"https:\/\/corpbiz.io\/company-registration\"><strong>company registration<\/strong><\/a>.&nbsp; <\/p>\n\n\n\n<p>In past, the closure of a fully functional privately held entity was a cumbersome task that included plenty of legal requirements that are difficult to meet. Fortunately, all those obstacles have vanished as the authority makes the closure procedure easier than ever.&nbsp;Currently, two options are accessible to companies to cancel company registration. These are as follows: <\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/11\/image-48.png\" alt=\"Revocation of Company Registration under Companies Act, 2013\" class=\"wp-image-19778\" width=\"532\" height=\"271\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/11\/image-48.png 1000w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/11\/image-48-300x153.png 300w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/11\/image-48-768x392.png 768w\" sizes=\"(max-width: 532px) 100vw, 532px\" \/><\/figure><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Fast_Track_Exit_FTE_mode_What_is_it_all_about\"><\/span>Fast Track Exit (FTE) mode: What is it all about?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>This mode allows the owner to swiftly wrap\nup the company; even an organization that is defunct (non-operational) can opt\nfor this mode. In the business context, a defunct company means a company that\ndoes not possess any asset and liability whatsoever. It is also referred to as\na type of entity that remains inactive since the incorporation or has not been\ninvolved in core business activities for more than one year.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Section 560, of Companies Act, 2013<\/h3>\n\n\n\n<p><strong>The provision for wrapping up the defunct companies under Fast Track Exit (FTE) mode&nbsp;is mentioned under&nbsp;<\/strong>Section 560, of the <em><strong>Companies Act, 2013<\/strong><\/em><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Companies_Act_2013\"><em><strong>[1]<\/strong><\/em><\/a><\/sup>. As per the said Act, the company seeking cancellation of registration certificate under FTE has to apply e-form 61 to Registrar of company. The applicant is also required to fill all pending statutory returns along with the said form. Also, the form cannot be submitted to the concerned authority in the absence of the Director&#8217;s signature.&nbsp;<\/p>\n\n\n\n<p>The authority would charge a prescribed application fee for this process. Similarly, the Registrar of Company can discard the name of the companies in the presence of a reasonable cause. Though, before passing any judgement, an equal chance is given to the defunct company to clarify their stands in the purview of due procedure under section 560<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Objection raised from the Other Parties<\/h3>\n\n\n\n<p>Upon receiving the application, the ROC would show the company\u2019s name on its online portal for 30 days of the timeline. Such relaxation is given to confront any objection raised from the other parties in the given timeline.&nbsp; Once this timeline is over without dispute or conflict, the registrar will grant their approval by conferring the certificate for the closure to the applicant.&nbsp;<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/benefits-of-private-limited-company\/\">5 Eminent Benefits of Private Limited Company<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_Documents_Required_to_Cancel_Company_Registration\"><\/span>What are the Documents\nRequired to Cancel Company Registration?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The following documents shall be required to cancel company registration. Keep in mind that these documents would go along the Form FTE:\u00a0<\/p>\n\n\n\n<p><strong><em>Approval letter from the BODs regarding the closure of\nthe company<\/em><\/strong>: Before applying for cancellation,\nthe company must get cancel all the active certificates and license as well as\nbank accounts as it is a mandatory requirement which should be met without\navoidance.&nbsp;Upon passing of board resolution, all the directors ought to\nrender an affidavit on stamp paper individually stating the following details:-<\/p>\n\n\n\n<ul><li>The director\u2019s declaration\nensuring that they are working as an active employer and have applied for\nclosure.&nbsp;<\/li><li>The company has got rid of all\nthe active bank accounts related to the company.&nbsp;<\/li><li>The declaration ensuring that\nthe company has no longer possesses any asset and liability.&nbsp;<\/li><li>Declaration that company\nremains inactive and doesn\u2019t involve with any sort of activities for the past\nyear.&nbsp;<\/li><li>The legitimate reasons for not\nbeing operative for the given period.&nbsp;<\/li><li>Stating that organization has\nno pending charges or legal disputes against anyone.&nbsp;<\/li><\/ul>\n\n\n\n<p><em><strong>After that, an Indemnity Bond should be executed by the company\u2019s directors in the presence of the two witnesses on a stamp paper and agree to do the below:\u00a0<\/strong><\/em><\/p>\n\n\n\n<ul><li>To indemnify any person for any financial losses that may\nhappen to strike off the company\u2019s name.&nbsp;<\/li><li>To address all the legal claims that probably come into\nexistence in the future after then canceling the company\u2019s name.&nbsp;<\/li><li>To settle the legal claims that hasn\u2019t been the highlight so\nfar.&nbsp;<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_Dormant_status_What_is_it_all_about\"><\/span>The Dormant status: What is it all about?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>This mode comes in handy when one has a\nregistered company for a future project. A Dormant company is primarily\nnon-functional and has the following traits:<\/p>\n\n\n\n<ul><li>No functional business or operation.&nbsp;<\/li><li>Free from any financial transaction&nbsp;<\/li><li>Not address any financial and tax liabilities.&nbsp;<\/li><\/ul>\n\n\n\n<p>It is wise to opt for \u2018<strong><em>dormant status\u2019<\/em><\/strong> as it\nreduces the maintenance cost for such a company. Such a company rejoices\nrelaxation on account of maintaining compliance for holding a meeting. Keep in\nmind that such a company has this status for five years only.&nbsp;&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>One has to address various requirements to cancel company registration. Be cautious while drafting the documents for the same because most of the error occurs on this account only. In case if you wish to opt for a hassle-free way to cancel the company registration then let experts advisors at <a href=\"https:\/\/corpbiz.io\/\"><strong>CorpBiz<\/strong><\/a> help you out.&nbsp; <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/advantages-and-disadvantages-of-a-public-limited-company\/\">Advantage and Disadvantage of Public Company Registration<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Every business has to survive through the hardship and apparent obstacles to earn profit irrespective of their size or nature of work. But sometimes even the well-planned strategies couldn\u2019t save the businesses from being hindered by adversity that occurs unexpectedly. and in such cases business left with no other option than cancel company registration. Individuals [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":19766,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[1225],"acf":{"service_id":"1"},"authorName":"Pankaj Tyagi","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/MicrosoftTeams-image-42.jpg","authorDescription":"Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.","postViews":10502,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/19765"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=19765"}],"version-history":[{"count":7,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/19765\/revisions"}],"predecessor-version":[{"id":19780,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/19765\/revisions\/19780"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/19766"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=19765"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=19765"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=19765"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}