Srinagar, Mar 26 : In a major drive , the Registrar of Companies (ROC), J&K has struck off more than 400 companies for non filing the business status with the office.
In a statement, the office said that Section 10A of Companies Act, 2013 requires the company and its directors to file the business declaration status with ROC within six months of its incorporation.
"All the companies who haven’t started business and have not filed the report with ROC either were struck off. A due procedure has been followed and an opportunity was given to the company to prove their businesses," the statement said.
ROC further got the bank accounts of all these companies frozen immediately through DFS and by writing to the banking association. "These companies can’t use the bank accounts held in their names once frozen, " the ROC said.
Officials said that the exercise is believed to be a check on shell companies as the companies should be transparent in their businesses; either you function or take a dormant status as per relevant sections of company law.