MCA notifies Companies (Removal of Name of Companies from the Register of Companies) Amendment Rules, 2023

Author: Rashna Jehani

With a view to streamlining the process of closure of companies, the Ministry of Corporate Affairs (‘MCA’) has by its notification dated April 13, 2023, introduced changes to The Companies (Removal of Name of Companies from the Register of Companies) Rules, 2016 (‘Rules’) by notifying the Companies (Removal of Name of Companies from the Register of Companies) Amendment Rules, 2023 (‘Amendment Rules’).

The Amendment Rules are to come into effect from May 1st, 2023.

The amendments have been made to Rule 4 of the Rules, dealing with application for removal of name of company as well as forms supplementary to the purpose.

Rule 4- Rule 4(1) is amended to include the ‘addressee of the application’ i.e., the ‘Registrar, Centre for Processing Accelerated Corporate Exit’. Prior to this amendment, the rule did not specify the addressee as such. Further, Rule 4 (3) (iv) of the Rules that mandated the furnishing of an affidavit in form STK-4 by every director of the company is omitted.

Moreover, the Amendment Rules seeks to add a clause after Rule 4(3) iterating the authority of the Registrar, Centre for Processing Accelerated Corporate Exit. He has been granted the prerogatives of the Registrar of Companies for the purpose of exercising functional jurisdiction of processing and disposal of applications made under Form STK-4 and matters pertaining to Section 248 of the Companies Act, 2013 and will possess country wide territorial jurisdiction.

Further the said Amendment Rules have substituted the following forms: (i) Form No. STK-2 (primary application made for the purpose of closing), (ii) Form No. STK-6 (Public Notice) and (iii)Form No. STK-7 (Notice of Striking Off and Dissolution)

I. Form STK-2: It is a checklist of sorts, detailing particulars of and compliances by the company and listing representations.

Additions: On the checklist side, companies will now have to confirm receipt of notice from Registrar in Form STK-1. They will also have to specify reasons for closure of company, warrant obtainment of consent from 75% members holding paid-up share capital and attach Form STK-8 to this Form.

Omission: Details like global location number, date of incorporation, listing status, SEBI/RBI/IRDAI registration number and date of special resolution are omitted.

II. Form STK-6: This form is a public notice declaring closing of company. The amendment adds two additional criteria qualifying a company for closing, i.e.

(a)- Subscribers to memorandum of association of a company have not paid their subscription and a declaration in this regard under Section 10A (1) of the Companies Act, 2013 has not been filed within 180 days of incorporation.

(b)- In the process of physical verification under Section 12(9), the Company is revealed to have not been carrying out business.

III. STK-7- Company particulars have been moved from the main body of the notice to Annexure A attached to the form. This Annexure enlists company, STK-2 and STK-6 particulars.

The amendments are expected to benefit companies by enabling them to close down smoothly without unnecessary bureaucratic days.

Feel free to reach and discuss. Send your opinion and comments on

Scroll to Top