Category: Business Management

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What is the role of Company registrar of Companies in the Incorporation process

company registration procedure

The Company Registration process in India includes Companies Secretaries, Chartered accountants and some other individuals. In this blog we will discuss the role of Registrar of Companies in incorporation process.

 

Role of Company Registrar

 

Registrar of Companies has very important role to play in Incorporation of Companies. All documents are sent to the Registrar of Companies only. He decides everything like whether Company’s name can be incorporated or not. There are three Categories which are divided in to 3 parts and they are as follows:-

 

 

  • Document Accumulation–  Once Registrar receives all the documents and application, then he will cataloguing it responsibly for future assessment.
  • Document Assessment-  Once the Registrar receives all the documents then he will check whether all the documents are in order or not. And for Document assessment he will check whether all documents are present or not. And whether the documents are as per the rule of Ministry of Corporate Affair. And he will check that whether the application is filed right or not.
  • The certification-  Once the Registrar checks every document that whether all the documents are present or not and all the documents are on record or not. And after checking all documents he will decide whether to certify the company or not. After certification of the company, documents are given to the Applicant. Only Chartered Accountant and Companies secretaries and some other people are authorised to apply for Incorporation of the Company. Because they are the experts and will advice you on correct things.

 

 

In BIATConsultant there are team of experts which can guide you in Company incorporation process.

 

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What Is Said To Be Dormant Status Of The Company

what-is-a-dormant-company

Dormant status of the Company

 

The concept of Dormant Company came into existence in India with Companies Act, 2013. And it basically is formed as a sleeping or inactive company which is made for the future perspective. There is not any specific clause in the companies Act but it is mentioned in section 455 of Companies Act, 2013. And under this section the types of companies which are formed for future references is being discussed.

 

Inactive company does not carry any business operations or has not made any significant accounting transaction during the last two financial year.  Companies must have not filed any financial statements or Annual returns during the last two financial years. Companies who have fails regarding mandatory annual requirements, those companies are also referred as a Dormant Company.

 

Here are some Rules regarding Dormant Company

 

MSC-1- Application for seeking- Application for obtaining a status of a Dormant Company can only be obtained through a special resolution Approval and through issuing a notice to all the Shareholders. There should not be any kind of dues i.e. tax dues or any outstanding loans, then only the status of a Dormant Company can be obtained.

 

MSC 2- Certificate of Registrar- Registrar will issue the Certificate.

 

MSC 3- Return of Dormant Company-  By filing return the financial position of the Company can be seen. And the returns of the Company should be filed by the Chartered Accountants who are in Practice.

 

MSC 4- Application for Active Status- If a Company wants to get its Active Status then it can simply move an application for the revert of the status along with the requisite fees.

 

MSC 5- Certificate of Application status- In this certificate of Application status is being issued.

 

There are some rules which specifies that a Company cannot remain inactive for more than 5 consecutive years i.e. there are some rules given in which it is clearly written that a Company cannot remain inactive for more than 5 Consecutive years.

 

And is registrar has doubt that being a Dormant Company some transactions have been issued then the registar can take necessary steps or action to revert the status of an inactive company to a Active Company.

 

Want to register a company in India ? Hire #1 business consultant in India – BIATConsultant .

 

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Procedure to close an inactive Company In India

close inactive company in india

If you are running the business then you are definetly aware with the risks that are involved with the Company, and there are times when you need to close your Company because of several reasons like if any Fraudulent activity is happening within the premises. However if you are thinking of closing the company then there are 4 ways by which  you can do so and they are as follows:

  1. Compulsory winding Up of the Company
  2. Voluntary Company
  3. Selling the Company
  4. Defunct Company Closing

 

Ways to wind up a Private Limited Company

 

 

  • Compulsory winding Up the Company-  If there is some Fraudulent activity going on in a company, then Tribunal asks the company for its closure and for closure following are the procedures:

 

  • Firstly petition is to be filed by the Central or State Government or registrar of Companies, Company, Trade creditor.
  • Then this Petition is attached together with the statement of affair of the Company.
  • Then Form 11 is to be filled by the Company and the Company will have to surrender its assets, submitted all the audited books up to the date when company did their last transaction.
  • Provide the date, time and place for the liquidator of the Company.
  • If everything is in order then company will get dissolved in 60 days.
  1.          Voluntary Closing-  Now if your company is not making any profit and you want to close it down then you there is list of compliances that you need to follow and they are as follows:-
  •  All the Directors should agree for the closure of the company.
  • A special resolution is need to be passed where 3/4th of the Directors needs to be agree.
  • Trade creditors should also agree with the same and for that insolvency declaration has to be made by the Company.
  • Then finally a liquidator is appointed to see that all your assets, liabilities and capital reserves are reported properly.

  

  1.           Selling the Company-  This is another way for closing of the Company i.e. if any company has transferred majority of its share to someone else, and by doing this stakes of the company is transferred to someone else.
  2.          Closing a Defunct Company-  A Defunct Company gets the status of the Dormant Company. This Company can be closed down using a fast track process. This can be done by filing of the form STK-2.

Firstly form has to be filled and submitted to the Registrar of Companies. However the Defunct Company should be without any liability, they should not be having any business after incorporation of the company, and have not functioning one year prior to filing the Application of Fast Track Scheme.

 

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