All about MCA Struck-Off Companies in 5 Questions

All about MCA Struck-Off Companies in 5 Questions Searching for MCA struck-off companies can be time-consuming and a tedious manual process.As per the ScheduleIII AmendmentNotification_24032021 issued by the MCA on March 24th 2021, while filing the annual returns, every entity needs to disclose any transactions they have done over the year with companies that have been struck-off from the RoC list i.e. Companies that have ceased operations in FY 2021-22 or later. These companies could be your partners, your vendors, and so forth.

1. What notification is required for companies to disclose transactions with Struck Off Companies?

Through Schedule III Amendment Notification, the Ministry of Corporate Affairs (MCA), on 24 March 2021, the MCA has made several amendments to Schedule III of 2013 Companies Act 2013. These amendments will be effective from the 1st of April 2021. (Schedule 3 deals with how financi al statements are to be prepared b y companies. The 'Y. Additional Regulatory Information: Rule (ix) refers to Relationship with Struck Off Companies.

This disclosure requirement requires that companies disclose any transactions they have with companies struck off under section 248 or section 560 of The Companies Act, 1956.

2. What is the deadline for companies to report transactions with Struck Off Companies?

Effective April 1, 2021, the disclosure requirement to declare transactions with MCA struck-off companies will be in effect. For financial statements for FY 2021-22, companies must disclose relationships with MCA struck -off companies under Additional Regulatory Inf ormation.

3. What transactions must be disclosed in order to comply with the additional regulatory requirement that the transaction relationship with the Struck Off Companies be disclosed?

These details must be disclosed in accordance with the additional regulatory requirement to disclose Relationship with Struck Off Companies  

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Name of the company that was struck off Nature of transactions with the struck off company o Securities investments o Receivables o Payables o Companies that have been wound up hold shares o Other outstanding balances (to-be specified) Outstanding balance Relationship with the struck-off company (if any).

4. Why are companies struck off?

Section 248 (5) or Section 560 (Companies Act) 2013 Section 248 of 2013 Companies Act defines the Power of the Registrar to Remove Name of Company from Register of Companies (RoC). The Companies Act 2013 section 248 states that the registrar may remove the company's name from the register for a variety of reasons. Reasons for removal may include: If a company does not resume business within one year after its incorporation - If the subscription has not been refunded within 180 days of incorporation of the company by memorandum subscribers - If the company doesn't start operations within two years of the financial year, the company must apply for dormant status.

- A company submits a request to the Registrar to remove its name from RoC. Section 248, (5) of 2013 Companies Act: Section 248, (5) of 2013 Companies Act deals with the removal of a company's name from the MCA Register. This section states that registrars may remove the name of dormant companies from the MCA register after the notice has expired. The notice shall be pub lished in the Official Gazette.

Section 552 of the Companies Act 1956 deals similarly with the removal of provisions for a defunct business. Section 560 (5), Companies Act 1956, states that at expiry of the time specified in the notice to defunct businesses, the Registrar can strike the name from the register and publish notice in the Official Gazette. The company will then be dissolved.

5. How can I find out if a company is in strike?

Companies have begun preparing their annual returns for the fin ancial year 202122. They must match their year -end list of related parties with MCA Struck Off companies. MCA publishes Struck-Off Companies by RoCs (STK-7 U/S 248)(5). It can be difficult and tedious to search for Struck Off companies.

- Every Registrar of Companies publishes its list of strike -off companies on an adhoc basis. There are 25 of these RoCs. - At the moment, there is not one source that can provide a complete list of all struck-off companies.

- These lists are in PDF format and are not system-readable. They require manual

intervention.

- One b y one searches are tedious because every time captcha must be filled.

For companies that have thousands of related parties, manual processing is slow and prone to errors. This can take days in some cases and hamper your overall productivity.

What is the best way to search MCA Struck Off Companies efficiently and effectively?

Technology can make it easier and more efficient to search each company individually. It also makes it less time -consuming and tedious. This will allow you to focus on your annual returns while you work. IRIS LookUp is an AI-based public data search tool that provides ac curate results in minutes.

IRIS is well-known for simplifying your business life with technology.

IRIS LookUp - An utility tool to search MCA struck off companies within minutes IRIS LookUp allows faster searches of public records that are not otherwise available in multiple locations or in multiple formats. It serves as a comprehensive directory of public records that are not otherwise separated.

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Search by CIN or Name: Search to find a struck-off company using its name or CIN Bulk search: Perform a bulk-search for all MCA struck-off businesses in one-go Search across multiple ROCs Data: See consolidated results for all of your companies, regardless of the RoC they're registered with!

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