Amendments in “Companies (Removal of
Names of Companies from the Register of
Companies) Rules, 2016”

Applicability:

Amendments with respect to Companies (Removal of Names of Companies from the Register of
Companies) Rules, 2016 shall be applicable from May 1, 2023.

Amendments made in Rule 4 are as follows:

• Sub-rule (1):

• Earlier: An application for removal of name of companies shall be made in form STK-2 to registrar of companies along with fees of five thousand rupees.
• Updated: Application for removal of name shall be made to registrar, Centre for Processing Accelerated Corporate Exit (C-PACE) in form STK-2 along with fees of ten thousand rupees.

• Sub-rule (3), clause (iv):

• Earlier: After extinguishing all liabilities, the company may apply for removal of name of company in STK-2 either by passing Special Resolution (SR) in General meeting or by obtaining consent of 75% member in terms of paid-up share capital of the company.
• Updated: Omitted w.e.f. from May 1, 2023.

• After sub-rule (3) the following shall be inserted namely “3A”

Central government has established a body named ‘Centre for Processing Accelerated Corporate exit’ which shall be considered as registrar and shall be given authority to process and dispose all the applications that are made in respect to removal of names of companies from the register of companies in Form No. STK-2. It shall also have the authority to bind the parties for their action under section 248.

• Apart from these, changes have been made in Form No. STK-2, STK-6, and STK-7 which is not very significant for the users of these Forms.

SW REMARKS:

As per our opinion the formation of C-PACE will make the process of removal of names
of companies from the register of companies effortless and time saving which will come in effect from
May 1, 2023.

Anand Raj, Audit Associate, SW India