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Verify your vendor list and identify List of Struck Off companies on MCA for mandatory disclosure as per the Companies Act
On March 24, 2021, the Ministry of Corporate Affairs (MCA) has introduced elaborative financial statement disclosure requirements effective from April 1, 2021, i.e., for financial statements prepared for FY 2021-22. One such requirement is a disclosure of transactions with companies struck off by the Registrar of Companies (‘RoC’) under section 248 of the Act 2013 or under section 560 of the Companies Act, 1956.
The following particulars are to be disclosed in such case:
It is important for every big corporate with a large vendor/supplier group to update and monitor the “strike off company status” of vendors/suppliers before every new financial year to protect future business interests
Struck-Off Companies means removing the name of the Company from the Register of Companies maintained by the Registrar of Companies. It is more like a Closure of the Company and cannot perform any operation thereafter. It ceases to exist as a legal entity and it cannot trade, sell its assets or make payments or even it cannot get involved in any other business activities.
The following are some basic disclosure requirements for Struck-off companies:
A strike-off provision of a defunct company is addressed in Section 560 of the Companies Act.
Every RoC publishes a list of strike off company, which means you need to check if your parties exist in that list. RoCs publish lists in an ad hoc manner thus you need to keep an eye on updates at all RoCs.
You are required to share the vendor list and vendor name and GSTIN/PAN. Microvista Technologies will take care of the rest. We will identify the struck-off companies, check their status on the MCA website via CIN No. and collate the required supporting document.
Contact Microvista Technologies Pvt. Ltd. We will check company strike off status and provide you reports.
Striking off company means to remove its name from the register of companies, thus dissolving the company and ending its legal existence.
A company can be struck off the register if it is inactive for a period of time, has ceased trading, has no assets or liabilities, and no legal proceedings are pending against it.
The company directors or shareholders can apply for striking off the company. However, if the company is being liquidated or is the subject of insolvency proceedings, the liquidator or insolvency practitioner must apply.
To strike off company, an application must be made to the Companies House in the UK. Once the application is received, Companies House will advertise the proposed striking off in the Gazette. If no objections are raised, the company will be struck off the register.