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The Tax Publishers Amendments to Fast Track Exit Scheme Pragya Bhandari The Companies (Removal of Names of Companies from the Register of Companies) Amendment Rules, 2019 have been issued, focusing on the new striking off framework with increasing the fees for removal of name from Registry of MCA, requiring to file overdue returns, further, providing new format for filing a statement of accounts. This article highlights such major amendments comparing with the existing provisions of the rules. 1. Prologue The Ministry of Corporate Affairs (MCA) has notified in its Notification No. G.S.R. 1174(E), dated December 26, 2016, F. No. 1/28/2013-CL.V, the provisions of sections 248 to 252 of the Companies Act, 2013 as well as the Companies (Removal of Names of Companies from the Register of companies) Rules, 2016 (hereinafter referred as 'the principle rules'). These sections and rules are related with removal of names of companies from the register of companies. The Companies (Removal of Names of Companies from the Register of companies) Rules, 2016 have been amended from time to time to develop a transparent and effective system. In pursuance of Notification G.S.R. 350(E), dt. 8-5-2019, the MCA has issued the Companies (Removal of Names of Companies from the Register of Companies) Amendment Rules, 2019 (hereinafter referred as 'the amendment rules'), which has changed the framework for closure of companies in India, effective from 10^th May, 2019. As per the section 248(2) of the Companies Act, 2013 and rule 4 of the principle rules, a company may make an application in Form STK-2 for removal of its name from the register of companies. An application should be made after extinguishing all its liabilities. In case, a company is regulated under a special Act, approval of the regulatory body constituted or established under that Act is required to be obtained and enclosed with the application. The amendment rules provide the major amendment in rule 4 of the principle rules which are bestowed in this article. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

Amendments to Fast Track Exit Scheme

Pragya Bhandari

The Companies (Removal of Names of Companies from the Register of Companies) Amendment Rules, 2019 have been issued, focusing on the new striking off framework with increasing the fees for removal of name from Registry of MCA, requiring to file overdue returns, further, providing new format for filing a statement of accounts. This article highlights such major amendments comparing with the existing provisions of the rules.

1. Prologue

The Ministry of Corporate Affairs (MCA) has notified in its Notification No. G.S.R. 1174(E), dated December 26, 2016, F. No. 1/28/2013-CL.V, the provisions of sections 248 to 252 of the Companies Act, 2013 as well as the Companies (Removal of Names of Companies from the Register of companies) Rules, 2016 (hereinafter referred as 'the principle rules'). These sections and rules are related with removal of names of companies from the register of companies. The Companies (Removal of Names of Companies from the Register of companies) Rules, 2016 have been amended from time to time to develop a transparent and effective system.

In pursuance of Notification G.S.R. 350(E), dt. 8-5-2019, the MCA has issued the Companies (Removal of Names of Companies from the Register of Companies) Amendment Rules, 2019 (hereinafter referred as 'the amendment rules'), which has changed the framework for closure of companies in India, effective from 10^th May, 2019. As per the section 248(2) of the Companies Act, 2013 and rule 4 of the principle rules, a company may make an application in Form STK-2 for removal of its name from the register of companies. An application should be made after extinguishing all its liabilities. In case, a company is regulated under a special Act, approval of the regulatory body constituted or established under that Act is required to be obtained and enclosed with the application. The amendment rules provide the major amendment in rule 4 of the principle rules which are bestowed in this article.