ISLAMABAD: The SECP, to facilitate the closure of companies, has launched an online portal of Companies Easy Exit Scheme, automating and simplifying the process of easy exit.

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

According to this 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.

The procedure of easy exit was previously carried out manually by filing an application to the SECP. However, with the launch of online portal, easy exit will be processed online.

The easy exit online portal is another initiative of SECP towards complete automation and digitalization to facilitate the corporate sector.

Copyright Business Recorder, 2022