Complete Understanding of Strike off of a Companies!
The company which has stopped its business operations and is not proposed to carry on the same in the future can apply with the ROC to strike off the company and closure of the company.
The ROC also on certain grounds can order and strike off the name of the company from the register of companies.
Methods of Company Strike off
The closure of a company can be made in the following ways:
- Registrar of companies orders for Company Strike off Suo Moto
- Strike off by voluntarily making an application by the company
Documents required for Company Strike off
- Certified copy of Special resolution for Approving closure of the company
- Indemnity Bond in form STK-3
- Affidavit form STK-4 from every director of the company
- Statement regarding no pending litigation against the company
- Statement of assets and liabilities certified by the chartered accountant.
- In case the company is also regulated by any other regulator, then-No objection certificate from the regulator.
Also read:Process of Company Registration in India
Grounds for Company strike off
The grounds / Requirement for the closure of the company are as follows:
- Non-commencement of company business within one year of incorporation
- Non-operation of business activities of the company continuously for the last two years
- Non Receipt of subscription money from Subscribers of the company and Non-filing of form for the commencement of business.
- Non Operation of any business activities from the registered office of the company.
Process for company Strike off
- Convene a board meeting to discuss the matters of the closure of the company and to apply to the ROC for company strike off
- Convene an EGM and pass the special resolution to approve the matter of strike off of the company
- Apply for regulatory approvals, if the company is regulated by any other regulator
- Preparation of draft documents for Filing the forms for the closure of the company
- Filing of Form MGT-14 with the ROC
- Filing of Form STK-2 with the ROC for the closure of the company
- ROC will scrutinize the details and information and if he found any discrepancy in the form then the form will be sent for resubmission and in case all the relevant information and documents are provided then the ROC will provide the approval and the company will be struck off from the register of Companies.
Frequently Ask Question on Strike off of a Companies
Q 1 What are the fees for filing form for the closure of the company with ROC?
Ans The fees for filing form STK 2 is INR 10000
Q 2 What happens in case the regulatory approval is not obtained from the regulator which regulates the company?
Ans In that case, the ROC will send the form back for resubmission along with regulatory approval.
Q 3 For how much time a company shall be inoperative to apply with ROC for the closure of the company?
Ans The company must be inoperative for at least two years.
Q 4 What if the company has not completed all the compliances before filing form for the closure of business?
Ans The ROC shall send the form for resubmission along with all completed compliances.
More read: Government Fees for registering the Company
Rajput Jain and Associates: Made and posted By Expert :
- Mr. Akshay Gupta (Company Secretary) is a diligent and innovative qualified Company Secretary, striving in matters related to Corporate Law.
- Akshay takes a deep interest in corporate, NBFC and FDI matters and his specialization includes corporate Compliance, FEMA Compliances, and NBFC Registration.
- As a Company Secretary, Akshay is passionate about matters relating to corporate funding, NBFC, and its compliances