Defunct cos can remove their names from RoC by paying Rs 5,000

Streamlining the guidelines for exit of defunct companies, the government today said names of such firms can be struck off the Registrar of Companies (RoC) by paying a fee of Rs 5,000.

The guidelines, which will be implemented from July 3, would help defunct companies to get their names struck off from the RoC after paying a fee of Rs 5,000, the Ministry of Corporate Affairs (MCA) said.

As per the guidelines, any unlisted company which does not have any asset or liability and is not involved in any business activity one year prior to the application to the RoC would be considered as a defunct company.

Such companies would need to procure a 'No Objection Certificate' from the the concerned ministries for getting a fast track exit, the statement said.

It added that the exit option would not be valid for vanishing companies -- listed firms that are not traceable -- and those companies which have been de-listed from the stock exchanges due to non-compliance of laws and wherein any form of investigation has been ordered.