Condition for the termination of a sole trading concern
The concerned department of department (where we register our company) may cancel the registration of a sole trading concern, if it doesn’t renew the firm within a prescribed period (i. e. within one). But the concerned department can revoke the firm even in the following circumstances/condition:
- If the owner of the firm submits an application stating reasonable reason(s).
- If a firm has been registered by providing false details.
- When a firm cannot submit the details sought by the concerned department
- When the firm does not give the details of the work progress specified in the license to the concerned department,
- If a sole trading firm commits any act against the law.
Before cancelling the registration of a private firm, the concerned department shall provide a reasonable opportunity to the sole trading concern for submitting a clarification. Any other private firm which carries same/similar objectives shall not be registered in the name of such owner of the firm for one year if the department cancels it once.