SECP launches online portal for easy exit of defunct companies

SECP building

To aid with the liquidation of businesses, the SECP has launched an online platform called Companies Easy Exit Scheme, which automates and simplifies the process.

According to a news release provided here, Section 426 of the Companies Act, 2017, and its accompanying regulations, the Companies (Easy Exit) Regulations, 2014, deal with the easy exit of a defunct firm.

Instead of filing a winding-up petition with the court, a private or public unlisted business that ceases to exist and has no known assets or liabilities may apply directly to the registrar to have its name struck off the register of companies.

Previously, the procedure for simple leave was done manually by filing an application with the SECP. With the opening of the web portal, however, a simple exit will be processed online.

Another SECP effort aimed at complete automation and digitalization of the corporate sector is the easy exit online portal.

Exit mobile version