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CS Executive · Setting Up of Business, Industrial and Labour Laws · Startups and its Registration

Kiran Foods Private Limited, a startup, has not carried on business or operations for the last two financial years and has made no application for dormant status. Its directors want to remove its name from the register without a long process, and it has no liabilities. Which simplified route under the Companies Act, 2013 is most apt?

The apt route is applying to the Registrar of Companies for removal of the company's name from the register, the strike off or fast exit route. It suits a company with no operations and no liabilities, avoiding court-based winding up, conversion, or merger, none of which provide a simple closure.

  1. AApplication to the Registrar for removal of the company's name under the fast exit (strike off) schemeCorrect
  2. BWinding up by the Supreme Court
  3. CConversion into a public company before closure
  4. DMerger with a listed company by default

Explanation

A company that has not carried on business for the stipulated period can apply to the Registrar of Companies to strike off its name, which is the simplified exit. Conversion or merger does not provide closure, and the Supreme Court does not wind up companies.

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