The simplified exit scheme 2005 will continue till July 31, 2005, the ministry of company affairs said in circular.
Under the new scheme, promoters of defunct companies would be able to close down their entities in a "hassle-free" manner, if they are able to show that the company did not carry out any business at any time or that they carried out some business activity but discontinued the same thereafter.
The scheme has also done away with the cumbersome process of filing applications for closing down entities before a magistrate.
All a company would now require to do is to make a declaration in an affidavit that their respective entities were not in operation and that it has no asset and liabilities.
Based on this information, the respective registrar of companies would issue an order for removal of company's name from its register.
For companies, who have been filing regular financial statements, the new scheme has provided that such entities should file the financial statement for the latest year prepared up to a period, which ended one month preceding the date of application.
However, the new scheme would not provide relief to companies facing prosecution for a non-compoundable offence.