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Notice by the registrar for removal of the name of the company from the register of the companies

Section 248 gives power to the registrar to remove name of a company from register of Companies.

If you have incorporated a company but have not done any business or not filed the annual returns for the preceding two years then you may get this letter from ROC. Generally they give 2 such reminders by sending letters to the registered office and after that the company comes under the process of striking off. This is a good news for some and bad news for some.

Good news is that, if you have actually not done any business and have no intention to do the same for the next five years then you don't have to pay voluntary strike-off fees and the fees of the consultant who would have applied and certified for your voluntary strike-off. Your company gets automatically striked-off in this method. 

Now the bad news is that, people who are actually running the business in the company or have kept the company for future use or they have business in other companies but not in this company and are not filing return then 2 problems will be faced:-

1.If the company is a running company then its bank account will be made dysfunctional and you won't be able to do any transaction. So your debtors will not get a realized and amount in the bank account cannot be encashed. 

2. The directors will be disqualified for the next five years, therefore you will neither be able to form a company for the next five years nor will you have any authority in other existing companies.

Therefore we suggest to file all your MCA annual returns on time to avoid this unnecessary harassment. Once the company is striked-off under section 248 it can only be opened by the NCLT order which again is a lengthy and expensive process.

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