I have a company registered in the books of Govt of India Company Register ,and since inception have never done any fianancial transactions and now have received a letter from registrar office to appear with documents in 30 days ,else they will stike off the name from the companies register .However i am not iterested as well to keep it active ,so will there be any legal implications if I do not show off .As i registered it from Bihar and now i am settled in Kolkata
09 July 2024
If you do not wish to keep the company active and you choose not to respond to the registrar's notice to appear with documents, there can be legal implications and consequences:
1. **Company Strike-off:** If you do not comply with the registrar's requirements within the stipulated time (30 days), they can proceed with striking off the company's name from the register. This means the company will cease to exist legally.
2. **Non-compliance Penalties:** Non-compliance with the registrar's notice may lead to penalties or fines imposed by the government authorities.
3. **Liability Concerns:** Even if the company has not conducted any financial transactions, failing to follow legal procedures for closure could potentially lead to personal liability issues for directors or shareholders in the future, especially if there are outstanding dues or liabilities that come to light later.
To manage this situation effectively:
- **Consultation with a Legal Professional:** It's advisable to consult with a corporate lawyer who can guide you on the best course of action. They can help you understand the legal implications of strike-off and ensure compliance with all necessary formalities.
- **Formally Close the Company:** If you wish to formally close the company, you should follow the legal procedures for closure as per the Companies Act. This involves filing the necessary forms and declarations with the registrar's office.
Given your relocation from Bihar to Kolkata, you may need to consider the logistical aspects of responding to the registrar's notice. Engaging a lawyer in Kolkata who has experience with company law can facilitate the process and ensure compliance with all legal requirements.
CAclubindia
