Removal of Company Name from MCA Database

Under certain conditions, the company name may be removed from the MCA database or delisted from the Companies Registrar. Sections 248-252 of the 2013 Companies Act (Act) are read in the 2016 Company (Removal from Registration of Company Names) Regulations and deal with the removal of company names. The same thing was reported on December 26, 2016. A similar provision was included in section 560 of the Companies Act of 1956, and the procedure for striking off a company name was similar. Today, RoC’s power is widely used to eliminate non-compliance and non-business companies.

Removal By The Registrar

The company registrant may revoke or strike off the company name if there is a reasonable reason to consider the following: 

  • An organization cannot start a business within one year of its establishment 
  • The members of the Memorandum of Understanding have not repaid the members within 180 days of the establishment of the company, and no declaration to that effect has been submitted. 
  • The organization has not operated a business or business for approximately two years immediately prior to the fiscal year without applying for the status of a dormant company. 

Removal Notice

Notices issued for removal will be officially published in the Official Gazette for the general public to know. During the period specified in the notification, the company registrar will remove the organization’s name from the MCA database and then publish the notification in the Official Gazette. 

The company will be dissolved as soon as the notice is officially published in the Official Gazette. Even if the company is dissolved as described above, the tribunal has the authority to dissolve the organization whose name has been removed from the company’s register.

Removal of Company Name From MCA Database Based on Suo Moto  

If the registrar has a reason to believe that, it is possible to remove the company name from the commercial register on a Suo moto basis – 

(A) If the company fails to start its business within one year of its establishment. Also 

(B) The entity has not been in business or doing business for the two periods immediately preceding the fiscal year (fiscal year) and has applied for the status of the dormant entity under section 455 within that period. 

The registrar will send a notice to the company and all directors of the company that it intends to remove the company’s name from the company’s register and request that a declaration be sent with a copy of any relevant documents. within thirty days from the date of the notice.”

The registrar may remove the company name from the company register under section 248 in terms of the Act.

However, the following categories of the organization should not be striking-off from the company’s register under the rule 4, 

  •  Listed company 
  • Companies delisted for non-compliance with the listing contracts or listing restrictions or other legal requirements.
  • A company where an investigation or inspection has been ordered and carried out, or the action has been completed, but the investigation or inspection is pending in court. 
  • Vanishing companies
  • A company for which a compound application is pending with appropriate authority to compound a crime committed by a defaulting organization or its officers 
  • Companies oppose criminal charges pending in court 
  • A company for which a report is issued by an inspector or registrar under the Companies Act of 1956, section 234, section 207, or section 206. A pending section 208 report may be submitted or even subject to prosecution instructions arising from such an audit or investigation. 
  • Companies that accept unpaid deposits from the public  

A company registered under section 25 of the Old Companies Act or section 8 of the 2013 Companies Act.

Restriction on Application for Striking-Off

Removal of Company Name from MCA Database

Application to remove the  name on behalf of the company will not be made  at any point in the preceding if the company is: 

changed the name or registered office from one state in India to another. 

It was alienated for the benefit of property or ownership for the purpose of disposing of it for the benefit of normal trade or business processes. 

To carry out activities other than those necessary or useful for the following purposes. 

  • Submit an application or 
  • Decide whether to apply, or
  • Completion of affairs of the company, or
  • comply with all legal requirements. 

Have to apply to the tribunal for approval of a compromise or agreement, but the issue has not yet been resolved. 

The company was dissolved under Chapter XX, whether voluntary or by the court. 

It will be fined up to Rs. 1 lakh rupees, If the company files an application for removal of name in violation.