02 August 2022
One of the clients due to lockdown and financial issue unable to commence the business in last couple of years not even filed Inc 20A till now, ROC issued form stk1 due to non commencement of business after 180 days from the date of incorporation, how to handle this complainces with ROC to remove the company name in ROC
11 July 2024
To handle the compliance issues with ROC (Registrar of Companies) and remove the company name due to non-commencement of business, follow these steps:
### Step 1: Understand the Situation - **Review the Notice (Form STK-1)**: Understand the reasons cited by ROC for issuing Form STK-1 (Strike off notice). - **Non-Commencement of Business**: If the company has not commenced business within 180 days of incorporation and hasn't filed INC-20A, it's non-compliant with Companies Act provisions.
### Step 2: Respond to Form STK-1 - **Prepare Response**: Prepare a response to ROC explaining the reasons for non-commencement of business, such as lockdowns, financial constraints, etc. - **Request for Extension**: If feasible, request an extension from ROC to show intent and plan to commence business.
### Step 3: File INC-20A - **File INC-20A**: Immediately file INC-20A (Declaration for Commencement of Business) along with necessary documents and fees. This form confirms that the company has started its operations.
### Step 4: Rectify Non-Compliance - **Clear Outstanding Filings**: Ensure all previous filings, including annual returns and financial statements, are up to date. - **Pay Any Outstanding Fees**: Clear any penalties or fees for late filings to avoid complications.
### Step 5: Seek Legal Advice if Necessary - **Consult with Legal Counsel**: If the situation is complex or legal implications are involved, seek advice from a company secretary or legal advisor specialized in corporate law.
### Step 6: Follow-up with ROC - **Submit Documents**: Submit the necessary documents, including proof of business commencement and INC-20A filing acknowledgment, to ROC. - **Compliance Follow-up**: Follow up with ROC to ensure they acknowledge the filings and compliance efforts.
### Step 7: Removal of Company Name - **ROC Decision**: Upon satisfactory compliance and submission of required documents, ROC may remove the company's name from the register. - **Publication**: Once ROC approves, they will publish a notice in the Official Gazette announcing the strike-off.
### Important Considerations: - **Timely Action**: Act swiftly to respond to ROC notices and comply with deadlines. - **Accuracy**: Ensure all filings are accurate and complete to avoid further delays or rejections. - **Professional Assistance**: Consider hiring a professional (company secretary or legal advisor) for guidance through the process.
By following these steps diligently and ensuring all required documents and filings are in order, you can effectively handle the compliance with ROC and proceed towards removing the company name due to non-commencement of business.
CAclubindia
