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Showing posts from April, 2017

Dormant Company: Section 455 of the Companies Act, 2013

DORMANT COMPANY {Section 455 of the Companies Act, 2013 read with Companies (Miscellaneous) Rules, 2014} [Effective from 1 st April, 2014] New Concept and new definition, yes, the Companies Act, 2013 introduced a new concept i.e. Dormant Company , for the Companies which are registered under this Act and for the inactive Companies incorporated under the Companies Act, 1956. This concept will help of those companies which are not doing any business activity for last two years and don’t want their company’s name to be struck off from the Register of Companies. In the Current situation, this will help the Startup Companies, who have idea to execute and incorporated the company but want some time to execute or to accomplish it. As per Section 455 of the Companies Act, 2013, where a company is formed and registered under this Act 1.      for a future project, or 2.      to hold an asset or intellectual property, and 3.      has no significant accounting tran

FAST TRACK EXIT (FTE) SCHEME UNDER COMPANIES ACT, 2013

FAST TRACK EXIT (FTE) SCHEME Section 248, 249, 250, 251 & 252 of the Companies Act, 2013 {Read with Companies (Removal of Names of Companies from Register of Companies) Rules, 2016} [Effective from 26 th December, 2016] FAST TRACK EXIT (FTE) scheme has been notified under the new Companies Act, 2013. It is very simple and cost saving method of winding up of the Company without going for lengthy liquidation process and without High court intervention. Under these sections, the power has been given to Registrar of Companies to strike off the name of the Company from the Register of Companies on suo-motto basis but a Company can also file the application in the prescribed form to the ROC for removing the name of the Company after extinguishing all its liabilities and after complying with some conditions. ΓΌ Following categories of the Companies shall not be removed/Strike off via FTE Scheme: 1.       listed companies; 2.       companies that have been delist