Defunct firms can exit online

ISLAMABAD: Securities and Exchange Commission of Pakistan (SECP) on Thursday launched an online portal to facilitate closure of defunct companies.

The easy exit scheme would ensure an automated and simplified online process of exit of firms, SECP stated. The procedure of easy exit was previously carried out manually by filing an application to the regulator.

It informed that Section 426 of the Companies Act, 2017, and its corresponding regulations, the Companies (Easy Exit) Regulations, 2014, would deal with the easy exit of a defunct company.

According to the legal framework, a private or public unlisted company, which ceases to operate and has no known assets and liabilities, may apply directly to the registrar to strike its name off the register of companies, instead of submitting a winding up petition to the court.

SECP said the easy exit online portal was another initiative of the commission towards complete automation and digitalisation to facilitate the corporate sector.