IndiaFilings / Learn / MCA / Companies Removal Of Names Of Companies From The Register Of Companies Rules 2023
Companies (Removal of Names of Companies from the Register of Companies) Rules, 2023  - IndiaFlings

Companies (Removal of Names of Companies from the Register of Companies) Rules, 2023

The Companies (Removal of Names of Companies from the Register of Companies) Rules, 2023, were recently introduced by the Ministry of Corporate Affairs. These new rules govern voluntarily removing a company's name from the Register of Companies, providing clarity and updated procedures. The amendments aim to streamline the process and ensure efficient handling of name removal applications. In this article, we will explore the key features and provisions of the Companies (Removal of Names of Companies from the Register of Companies) Rules, 2023.

Synopsis of Companies (Removal of Names of Companies from the Register of Companies) Rules, 2023

The Ministry of Corporate Affairs has introduced significant amendments to the Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016, via the Companies (Removal of Names of Companies from the Register of Companies) Rules, 2023, which came into effect on May 1, 2023. 
  • Revision of Rule 4 (1) Regarding Application for Company Name Removal: Rule 4 (1) has undergone revision, specifying that companies seeking to remove their names under Section 248 (2) must now apply to the Registrar, Centre for Processing Accelerated Corporate Exit. This application is to be made in Form No. STK-2 requires a fee of Rs. 10,000.
  • Insertion of Rule 4 (3-A) for Application Submission: A new provision, Rule 4 (3-A), has been inserted, addressing the application process for company name removal.
  • Establishment of Registrar for Processing and Disposal: The Registrar, Centre for Processing Accelerated Corporate Exit, will be established under Section 396 (1) and will hold jurisdiction over the processing and disposal of applications made in Form No. STK-2, as well as all matters related to Section 248, across India.
  • Revised Form STK-2 for Company Name Removal Application: Form No. STK-2, which pertains to the "Application by the company to Registrars of Companies (ROC) for removing its name from the register of companies," has been revised to align with the updated requirements.
  • Revisions Made to Form STK-6 for Public Notice: Form No. STK-6, used for publishing public notices regarding company name removal, has been updated to reflect the recent changes.
  • Amendments to Form STK-7 for Notice of Striking Off and Dissolution: Form No. STK-7, which deals with the issuance of notices for striking off and dissolution, has been revised to accommodate the revised rules and procedures

Companies (Removal of Names of Companies from Register of Companies) Rules, 2016

The Ministry of Corporate Affairs introduced Sections 248-252 of the Companies Act 2013 on December 26, 2016. These sections outline removing or striking a company's name from the Register of Companies. Section 248 grants authority to the Registrar of Companies (ROC) to remove a company's name from the register if it meets specific criteria.   Section 248 also allows a company to voluntarily apply for the removal of its name based on the same grounds mentioned above. To support Section 248, the Ministry also notified the Companies (Removal of Names of Companies from Register of Companies) Rules, 2016, on the same day, i.e., December 26, 2016. These rules provide detailed guidelines and procedures for removing company names from the register.

Removal of Names of Companies from the ROC

Winding Up of Companies can be initiated by following two processes:

Voluntarily Removing Company Name using Form Form STK-2

A company can choose to remove its name from the register of companies voluntarily by submitting Form STK-2.

Removal of Company Name from Register of Companies by Registrar

According to Sections 248 to 252, the Registrar of Companies possesses the authority to remove a company's name from the Register of Companies. The Registrar can exercise this power if there is reasonable cause to believe that:
  • One year after incorporation, the company has not begun doing business.
  • For two consecutive financial years, the company has not engaged in any business or operation and has not applied for dormancy status.

Companies (Removal of Names of Companies from the Register of Companies) Rules, 2023

The amendments primarily focus on the application process for removing a company's name from the Register of Companies.

Application for the removal of a company's name

As per the updated rules, an application for removing a company's name must be submitted to the Registrar, Centre for Processing Accelerated Corporate Exit (C-PACE), using Form No. STK-2. Along with this application, a fee of Rs 10,000/- is required. 

Registrar, Centre for Processing Accelerated Corporate Exit (C-PACE)

The Registrar, Centre for Processing Accelerated Corporate Exit, established under sub-section (1) of section 396, now serves as the Registrar of Companies responsible for processing and disposing applications made in Form STK-2. This Registrar holds territorial jurisdiction across all of India. These recent amendments streamline the application process for removing a company's name from the Register of Companies and ensure a centralized and efficient system for processing such applications through the Registrar, Centre for Processing Accelerated Corporate Exit.

Revised Forms for Removal of Company Name from Register of Companies

Companies (Removal of Names of Companies from the Register of Companies) Rules, 2023 releases amended Form STK-2, Form No. STK–6 and Form No. STK-7. 
  • Form STK-2: As mentioned above, Form STK-2 is used by a company to apply to the Registrar of Companies to remove its name from the Register of Companies. The form must be submitted with the required Rs 10,000/-fee.
  • Form STK-6: This form is used for the prescribed Public Notice. Once the Registrar of Companies receives the application in Form STK-2, they will publish a public notice in Form STK-6 on the Ministry of Corporate Affairs (MCA) website and in at least one English newspaper and one vernacular newspaper.
  • Form STK-7: This form is used for issuing the notice of striking off and dissolution. After three months after the publication date of the public information in Form STK-6, the Registrar of Companies has the authority to strike off the company's name from the ROC, they will then issue a notice of striking off and dissolution in Form STK-7.
The revised Form STK-2, Form No. STK–6 and Form No. STK-7 is attached here for reference:

Procedure for Voluntarily Removing Company Name using Form STK-2

By filing Form STK-2, the company can initiate the process of removing its name from the register of companies. Following the Companies (Removal of Names of Companies from the Register of Companies) Rules, 2023, the application must be submitted in Form STK-2 along with a fee of INR 10,000. The procedure followed by the company for removal is as follows:
  • Board Approval: The board of directors must approve the name in a board meeting to remove it. The company also approves the notice for an Extraordinary General Meeting (EGM).
  • Shareholder Approval: The shareholders pass A special resolution at the general meeting to remove the name.
  • Authority Approval: If any other authority regulates the company, approval from such authority is also required.
  • Filing of Application: After obtaining the necessary approvals, the company applies Form STK-2 and the relevant documents to the Registrar, Centre for Processing Accelerated Corporate Exit (C-PACE).
Note: A company name removed from the Companies Register of Companies is governed by the Amendment Rules for Companies, 2022. The Registrar will notify the applicant within 15 days of any deficiencies or incompleteness in the application or documents. The Registrar will inform the applicant of the invalidity of the form if the applicant does not comply with this request.
  • Public Notice: Upon receiving the application, the Registrar publishes a public notice (STK-6). If there are any objections to the removal, they must be raised within 30 days from the date of publication.
  • Name Removal: After completing all the necessary processes, the Registrar removes the company's name from the register. Notice of such removal will be sent to the official gazette in Form STK-7.
By following this procedure and fulfilling the requirements, a company can voluntarily remove its name from the register of companies.
RENU SURESH
RENU SURESH Expert
Updated on: June 2nd, 2023

Popular Post

Download ePAN Card – Get ePan from NSDL & UTIITSL
80 Small Business Ideas

Starting a small business can be a transformative venture, offering the exciting opportunity...

Nadakacheri – Income Caste Certificate Download Online in Karnataka
TDS Rate Chart for Financial Year 2025-2026 (Assessment Year 2026-2027)

Tax deduction at source, shortly and popularly known as TDS, was introduced by the Income Tax...

Divorce Rules in India: Everything You Need to Know
How To Download GST Registration Certificate Online?

Goods & Services Tax Certificate is issued to people who are registered under GST...

PAN Card Cancellation Online
Find Complete Details of GST Registration Procedure

GST registration applies to all individuals and entities supplying goods or services in India. GST...

Check Your PF Claim Status Online Using PF Tracking ID
Gift Tax in India: Applicability, Exemptions and Rules

Gift tax in India is applied when the value of the received gift exceeds ₹50,000 in the...

Check Your PF Claim Status Online Using PF Tracking ID
Old Regime vs New Regime 2025: Which Tax Regime is Better for You?

The Union Budget 2025 has brought significant changes to India’s personal income tax structure, raising the...

Check Your PF Claim Status Online Using PF Tracking ID
What is the minimum turnover for GST?

The Goods and Services Tax (GST) is an indirect tax system introduced in India in 2017. It functions...

Check Your PF Claim Status Online Using PF Tracking ID
How can I check if a trademark is registered?

A trademark search is simply checking if another person or organization does not already own the...

Check Your PF Claim Status Online Using PF Tracking ID
Section 194H of the Income Tax Act: TDS on Commission & Brokerage

Section 194H of the Income Tax Act in India mandates the deduction of Tax at Source (TDS) on commission or brokerage...

Check Your PF Claim Status Online Using PF Tracking ID
Section 80G Deduction - Income Tax Act

Section 80G Deduction is a facility available in the Income Tax Act which allows taxpayers to...

Check Your PF Claim Status Online Using PF Tracking ID
Crypto Tax in India: Taxation On Cryptocurrency

The Income Tax Department (ITD) has not provided specific guidance on crypto taxes for Indian investors. However...

Check Your PF Claim Status Online Using PF Tracking ID
Internal Audit Applicability Under Companies Act, 2013

Internal audit applicability is a critical concept for companies in India, impacting various...

Check Your PF Claim Status Online Using PF Tracking ID
Difference between Private and Public Company

In the business world, two main types of companies exist: private company and public company...

Check Your PF Claim Status Online Using PF Tracking ID
New GST Rules for Rent

Ministry of Finance vide a Notification No 05/2022- Central Tax (Rate) dated 13.7.2022 has issued...

Check Your PF Claim Status Online Using PF Tracking ID
GSTR-1 and GSTR-3B Due Date Extension - New Due Dates For January 2025

The Central Board of Indirect Taxes and Customs (CBIC) has recently announced an extension...

Check Your PF Claim Status Online Using PF Tracking ID
Different Depreciation Rates under Companies & Income Tax Act

Depreciation is a key concept in finance and accounting. It helps us manage how the value of...

Check Your PF Claim Status Online Using PF Tracking ID
Form 10IA - Section 80DD Deduction

Form 10IA of the Income Tax Department must be filed by taxpayers claiming income tax deduction...

Check Your PF Claim Status Online Using PF Tracking ID
GST on Used Cars: New 18% Tax Rate Explained

The Goods and Services Tax (GST) system in India has been a significant reform in the country's...

Check Your PF Claim Status Online Using PF Tracking ID
MSME Registration - Udyam Registration

India's Gross Domestic Product (GDP) benefits significantly from the substantial...

Check Your PF Claim Status Online Using PF Tracking ID
Section 43B(h) - New MSME 45 Days Payment Rule

The Finance Act, 2023 introduced the MSME 45-day payment rule under Section 43B(h) of the Income Tax Act...

Check Your PF Claim Status Online Using PF Tracking ID
Direct Tax Vivad Se Vishwas (DTVSV) Scheme, 2024

The Direct Tax Vivad Se Vishwas (DTVSV) Scheme, 2024, was announced by Union Finance Minister...