Press Information Bureau

Government of India

Ministry of Corporate Affairs

30-April-2012 17:34 IST

De-Registration of not-for-Profit Companies

The Minister of State in the Ministry of Corporate Affairs Shri R.P.N. Singh today informed the Rajya Sabha that the Government has not proposed to relax existing norms for not-for-profit companies to allow them to de-register without having to follow cumbersome regulations as the Fast Track Exit Scheme introduced by the Ministry w.e.f. 03.07.2011 does not extend to companies under section 25 of the Companies Act, 1956 which are not for profit.

Also the Government has not received representations from various stake holders to develop a procedure to strike off names under Section 560 of the Companies Act, 1956 as this Ministry has already introduced a simplified scheme known as ‘Fast Track Exit Scheme’ w.e.f. 03.07.2011 for striking off the names of the companies u/s 560 of the Companies Act, 1956.

The Minister was replying to a written question in this regard in the Rajya Sabha today.

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ST/-

De-registration of not-for-profit companies: Fast Track Exit Scheme excludes such entities, no relaxation proposed. The Government will not relax de-registration norms for not-for-profit companies; the Fast Track Exit Scheme introduced w.e.f. 03.07.2011 to simplify striking off company names does not extend to companies formed for charitable or non-profit purposes, and no stakeholder representations seeking a separate strike-off procedure have been received.