The Financial Express
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RJSC moves to strike off inactive companies

| Updated: September 15, 2019 18:49:02

RJSC moves to strike off inactive companies

The Registrar of Joint Stock Companies and Firms (RJSC) has moved to strike off inactive companies and firms registered with RJSC.

According to RJSC office, around 10,000 companies and firms have not filed returns to RJSC for more than 20 years.

RJSC is now serving notices to those companies and firms.

"We have so far served 50 notices to the companies who haven't filed returns or are believed not carrying on business or in operation," Deputy Registrar Abu Ishaq Mohammad Bhuiyan told the FE.

Though striking off companies is regular work according to law, he said, this is part of speeding up RJSC's work and automation of operations.

The commerce ministry has instructed them to strike off all inactive companies and firms, he added.

According to RJSC, the registrar office first serves notices to inactive firms to know whether the company is carrying on business or in operation.

If the registrar doesn't get any answer within 30 days of issuing notice, then it serves second notice. After no reply to the second notice, RJSC publishes official gazette with a view to striking the name of the company off the register.

The companies and firms get 90 more days before they are struck off finally.

According to RJSC, some 132,653 companies and firms were registered during the period between 1982 and 2009 while 235,545 firms between 2009 and August 2019.

In the last 10 years, 167,802 private limited, 3,496 public limited, 887 foreign, 47,525 partnership, 1,102 trade organisations and 14,733 societies companies and firms were registered with RJSC.

However, 2018-19 year saw the lowest number of companies and firms in last five years.

Some 8,936 companies and firms received registration from RJSC in 2018-19 while 9,786 in 2017-18, 9,224 in 2016-17, 9,792 in 2015-16 and 9,107 in 2014-15.

RJSC earned Tk 4.03 billion in revenue in the fiscal year 2018-19 while Tk 2.37 billion in FY 2017-18, Tk 2.12 billion in FY 2016-17, Tk 1.52 billion in FY 2015-16 and Tk 1.08 billion in FY 2014-15.

Mr Bhuiyan said RJSC has earned more revenue in recent years as it has rejuvenated its operations.

"Many companies have also been paying cumulative outstanding together due to a reduced rate of fees and charges," he added.

Most of RJSC work is still done manually. RJSC has taken initiative to automate its operation.

Mr Bhuiyan said they have taken a lot of initiatives to provide hassle-free one-stop services for new entrepreneurs and improve the ease of doing business index.

"Automation, reduced charges and fees, striking off inactive companies and firms, regularisation of filing returns are part of these initiatives," he said.



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