The Companies (Easy Exit Regulations), 2014, provide a streamlined process for dissolving a company and striking its name off the register. This guide explains each step required for the dissolution of a company in Pakistan in detail, covering various types such as SMC (Single Member Company), Private Limited, and LLP (Limited Liability Partnership).
Step 1: Eligibility Filtering
Firstly, determine if your company qualifies for dissolution under these regulations. Eligible entities include private and public unlisted companies, and associations not for profit licensed under Section 42 of the Companies Ordinance, 1984. However, dissolution of a company cannot proceed if it falls into any of these categories:
Subsidiaries of listed companies.
Foreign companies.
Additionally, Trade organizations licensed under the Trade Organization Act, 2013 (II of 2013).
Companies with outstanding liabilities from loans, taxes, utility charges, or obligations to government departments or private parties.
Those companies under investigation, enquiry, inspection, prosecution, or with pending matters before any court or authority.
Companies with management or shareholding disputes.
Some companies involved in illegal or fraudulent activities.
Housing and real estate development or real estate marketing companies.
Companies involved in soliciting public deposits where repayment or delivery of promised goods or services remains incomplete.
Step 2: Preparing the Applications
Next, gather and prepare all necessary documents and forms. Submit the following to the concerned registrar of companies:
Application for Striking Off Company’s Name (Form EE-I):
This form officially initiates your request to dissolve the company and strike its name off the register.
Members’ Resolution (Form EE-II):
This resolution shows that the company members agree to the company dissolution and striking off.
Declaration/Indemnity (Form EE-III):
This declaration confirms that the company has no liabilities and meets all criteria for dissolution.
Auditors’ Certificate (Form EE-IV):
This certificate from the company’s auditors confirms that the company has settled all financial obligations.
Step 3: Submitting the Application
Furthermore, after preparing the documents, submit them to the concerned registrar of companies. It is crucial to note that such documents can also be submitted online through SECP portal. Ensure that all forms are correctly filled and signed.
Step 4: Payment of Fee
Finally, after the submission of documents, pay the application fee as prescribed under the Seventh Schedule to the Companies Act, 2017:
Online submission: Rs. 5,000/-
Manual submission: Rs. 10,000/-
Remember, the fee for electronic submission applies only if the Commission provides the facility for electronic filing or lodging of documents.
Step 5: Awaiting Approval
Lastly, wait for the registrar to review your application. If you meet all the criteria and have no outstanding issues, the registrar will approve your application, dissolve your company, and strike its name off the register.
Summary of the Procedure:
Check Eligibility: Confirm that your company does not fall into any excluded categories.
Prepare Documents: Complete and gather Forms EE-I, EE-II, EE-III, and EE-IV, along with necessary resolutions and certificates.
Submit Application: File all documents with the concerned registrar.
Pay the Fee: Pay Rs. 5,000/- for online submission or Rs. 10,000/- for manual submission.
Await Approval: The registrar reviews your application and, if all criteria are met, dissolves the company and strikes off its name.
By following these detailed steps, you can efficiently manage the process of dissolving your company and striking its name off the register under the Companies (Easy Exit Regulations), 2014.
If you need assistance with dissolution of a company in Pakistan, you can contact us at contact@osamakhalillaw.com or +92-316-1829946