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Striking Off of Company Under Act of 2013

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Strike Off a Company – An Overview

Strike off Under Companies Act of 2013 is an official process for winding up a business. It involves the removal of its name from public records. Voluntary winding up of the company is done by filing a petition with the Registrar of Companies (ROC). Further, the company name is removed from the register by issuing a notice. The process is outlined in the Companies Act, 2013 allowing a straightforward dissolution.

Another way to end a company’s operations is by removing its name from public records. The Registrar of Companies (ROC) may issue a notice requesting the removal of a company name. Alternatively, the business might ask the ROC to strike its name from the register on its own behalf. Section 248 to 252 of the Companies Act of 2013 describes this procedure.

Benefits of Strike Off Company

Cost Savings: Striking off a company can eliminate ongoing compliance costs, such as annual fees, audits, and filing requirements. This can be beneficial for companies that are no longer operating or generating revenue but still incurring expenses

Simplified Administration: Once a company is struck off, the administrative burden of maintaining company records, filing annual returns, and complying with regulatory requirements is lifted. This can reduce the administrative workload for the company directors or owners

Closure of Business: Striking off a company is often used as a way to formally close a business that is no longer active or profitable. It provides a clean and legal way to cease operations and wind up the affairs of the company

Privacy and Confidentiality: For companies that value privacy, striking off can remove their information from public records and databases, reducing the visibility of their business activities. This may be beneficial in cases where the owners wish to maintain a low profile or protect their personal information.

Procedure for Strike Off Company Name

Here is a step-by-step process KhataDekho follows for striking off a company under the Companies Act of 2013:

Step 1: Convene a Board Meeting

After conducting a board meeting where the board of directors will approve crucial transactions. Our team can help in authorising a director to apply to the Registrar of Companies (ROC), approving the strike-off of the company, and issuing a notice for an extraordinary general meeting.

Step 2: Liabilities Extinguishment

Once the board resolution is passed, KhataDekho will ensure that any existing liabilities of the company are properly extinguished. It is essential to close the company’s financial obligations.

Step 3: Extraordinary General Meeting (EGM)

The EGM is a crucial step in obtaining shareholder approval for the closure of the company.

Step 4: Approval from Concerned Authorities

If any other regulatory authority oversees the company. KhataDekho will help obtain the necessary approval from that authority. It ensures compliance with all regulatory requirements.

Step 5: Application to ROC

KhataDekho will prepare and file the required forms with the ROC on behalf of the company. We will file Form MGT-14 within 30 days of passing the resolution, along with the prescribed fees. Additionally, we will file Form STK-2, which is necessary for strike-off.

Documents Required for Strike off Company

The following Draft documents of strike off company is required for striking off the company:

  • Board and shareholder resolutions
  • Financial statements
  • Tax clearance evidence
  • Asset and liability statement
  • Proof of dissolution or winding up
  • Consent of creditors
  • Consent of regulatory authorities
  • Other jurisdiction-specific documents may be required
  • It is advisable to consult legal professionals or government authorities for accurate and specific requirements.

Effect of Company Notified as Dissolved

Legal status of Strike off company has the following effects of firing a company:

  • A corporation that has been dissolved in accordance with Section 248 of the Act ceases to exist as of the date stated in the notice published in the official gazette
  • The ROC’s certificate of incorporation is regarded as invalid as of the date of dissolution. For the purposes of paying off the business’s debts, recovering unpaid sums owing to the firm, and carrying out its duties, the certificate of incorporation is still valid.

Timeline

Free Consultation and Documentation
  • Our Expert team resolve your queries. Our consultation is completely free.
Action Required by you
  • You Need to fill up the draft, Make Payment and Submit Documents to Khata Dekho
Action By Khata Dekho
  • Once the Documents are uploaded we’ll start the step -by-step process of Incorporation

Frequently Asked Questions (FAQs)

The time it takes to strike off a company can vary depending on the jurisdiction and other factors. For more information get in touch with us today.

A company strike off can be suspended for various reasons, including:

  • Outstanding debts or liabilities
  • Legal disputes
  • Regulatory concerns
  • Pending investigations
No, you cannot buy a strike off of a company. A strike-off company cannot be bought or sold.
When a company is dissolved, the director’s powers and responsibilities cease to exist.
When a company is struck off, it is removed from the official register of companies and ceases to exist as a legal entity. This means that it cannot trade, make payments, or sell assets. The directors and shareholders of the company also lose their limited liability protection, which means that they can be held personally liable for any debts or obligations of the company.
If a company is struck off by the authorities, the following will happen:
  • The company’s name will be removed from the register of companies.
  • The company’s bank accounts will be closed.
  • The company’s assets will be transferred to the Crown.
  • The directors and shareholders of the company will be removed from the register of directors and shareholders.
A company status strike off means that the company has been removed from the register of companies and no longer exists as a legal entity. This can happen for a number of reasons, such as if the company has not filed its annual returns or paid its annual fees, or if it has been dissolved by the court.
To apply for strike off, you will need to file a form with the Companies House. The form can be found on the Companies House website. You will also need to pay a fee.
No, a struck off company cannot sell property. Once a company is struck off, it no longer exists as a legal entity and cannot enter into contracts or own property.

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