Not possible to close company without filing Financials and Annual Return: MCA Notification

The Ministry of Corporate Affairs (MCA) has notified a major change in Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016. Now you cannot close the company without financial statements under section 137 and overdue annual returns under section 92.

For applying for the closure of the company first you need to file overdue financial statements under section 137 and overdue annual returns under section 92, up to the end of the financial year in which the company ceased to carry its business operations.

Provided further that in case a company intends to file the application after the action under sub- section (1) of section 248 has been initiated by the Registrar, it shall file all pending financial statements under section 137 and all pending annual returns under section 92, before filing the application.

Provided also that once notice under sub-section (5) of section 248 has been issued by the Registrar for publication pursuant to the action initiated under sub-section (1) of section 248, a company shall not be allowed to file the application under Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016.

Click on the link given below to download the notification.