The Registrar of Joint Stock Companies and Firms (RJSC) is set to update its list of companies, asking businesses that have not submitted annual returns for 10 years to comply.
As per rules, companies are required to submit profit and loss accounts, balance sheets, summary of directors and shareholders and shareholder position every year.
But about 15,000 companies out of 1.55 lakh submit returns yearly, making it difficult for policymakers to determine the actual number of entities still running. Of those registered, 40,000-50,000 might have gone out of operation, according to RJSC officials.
“From last week we have started writing to companies that have not been submitting returns for 10 years. If they do not comply, we will strike off the names of the companies,” said Md Mosharraf Hossain, registrar of the joint stock companies and firms. Officials said they would initially issue letters to companies for compliance. If there is no response, another letter will be issued warning that their names would be removed from the register.
Later, gazette notifications will be issued and the RJSC will wait for another three months for a response.
If companies do not respond and explain the reason behind their non-compliance, their names will be removed from the register, according to the rules.
The RJSC move comes following the scope it created online for businesses to get clearance for their names, become registered and submit returns online.
RJSC officials said many companies do not know that returns can be submitted online and some are not aware about the rules of submission of annual returns. Delayed filing of returns is subject to a fine as per the rules.
“We hope that many companies will become aware of the rule and start submission of returns soon,” said RJSC Deputy Registrar Ranajit Kumar Roy.