The Companies Act of 2013 outlines the regulations for removing the names of companies from the Register of Companies. This process, governed by Sections 248 to 252 of the Act, provides underperforming businesses with an opportunity to eliminate their names from the list of registered companies maintained by the Registrar of Companies.
A company that is not carrying out any business activities due to unfavorable market conditions can choose to temporarily halt its operations and restart them at a later time. In such cases, the company can request the Registrar of Companies (ROC) to change its status from “active” to “dormant”. Businesses that are not engaged in any activities are commonly known as dormant companies.
BASES FOR STRIKE OFF- The company has not commenced any business activities within one year of its incorporation. As it did not carry out any operations during the past two fiscal years , it did not seek to be designated as a dormant company under section 455 of the companies act.