(1) The concerned Department may cancel registration of a firm which is registered under this Act in the following conditions;
(a) If a firm registered for commercial business fails to cause to effect renewal of the firm within stipulated
time.
(b) If the partners submit an application to terminate the registration of the firm upon setting out reasonable
reasons thereof to the concerned Department.
(c) If a firm fails to submit the particulars sought by the concerned Department pursuant to Section 11a within
prescribed period.
(d) If an industry related firm closes down the operating industry, whether by providing notice thereof to the
concerned Department or not.
(e) If an industry related firm fails to cause to effect the renewal of the firm within the prescribed time from the
expiry of validity period to renew the firm; or fails to submit the written progress report on the action as may
be required to be taken for the construction of factory, purchase of machinery or tools or equipment and
operation of the industry in order to establish and operate the industry as per the condition of the license
despite the firm has been renewed.
(f) If a firm commits an act in contravention of this Act or Rules framed hereunder.
(2) The concerned Department shall give a reasonable opportunity to the concerned firm to submit it’s clarification before canceling the registration of that firm pursuant to Clauses (a), (c) (d) (e) or (f) of Sub- section 1.
(3) If the concerned Department cancels the registration of a firm pursuant to Clauses (a), (c), (d) (e) or (f) of Sub-section (1), no any other firm which carries the same objectives shall be registered in the name of  such partners of that firm for a period of one year.