When the Company is incorporated, a Certificate of Incorporation is issued by the Registrar of Companies which acknowledges the existence of the Company. Once the name of the company is entered into register it cannot be removed unless the company applies for it or is processed by law. When the company fails to commence its business or fails to submit yearly returns, the registrar may suo motto Strike Off the Company by sending notice to the company at its registered office address.

 

 

Closure of a Private limited company

 

 

If the company owners or directors decide to discontinue or wind up the business, they may consider for the options of the closure. Most feasible or easiest way to close a company is striking off its name from Register of Companies. This is preferable when a company is inoperative for a certain period. Other options include a winding-up petition, however that involves more time, investment and compliance.

 

On approval of the strike off, the company’s name is removed from the register and thus, it is not existent in the eyes of laws. The company must fulfill all the compliance before proceeding for the strike-off application. The application is accompanied by various documents and requires assistance from the professional.

 

 

Strike off Company Meaning:

 

 

If we go by the literal meaning of the strike off then Strike Off means removing the name of the Company from the Register of Companies maintained by the Registrar of Companies. It is more like a Closure of the Company and the Company will not be in existence after being Struck Off and cannot perform any operation thereafter.

 

 

The Companies can apply under fast track exit mode for striking off its name:  

 

• Companies which are not operating or not carrying on any business since last two year from the date of application or,

 

• Companies which are not operating or not carrying on any business within one year of incorporation and,

 

• Company having Nil assets & liability.

 

 

Companies that are not eligible for Strike off:

 

As per the Companies Law, a company will not be eligible for strike off under the following circumstances:

 

• The company is incorporated after 2nd November, 2018, but it has not filed 20A.

 

• One year is not completed since incorporation.

 

• For ongoing company i.e having business transactions in last 1-2 years.

 

• DIN of Directors are deactivated.

 

• Any Director is disqualified.

 

• Company has already received notice from ROC of strike off.

 

• Any ongoing litigation are pending.

 

 

How long it takes to strike of company name from the register of companies?

 

Once an application is made for striking off of company by filing E-form STK-2, the concerned Registrar of Companies (ROC) after verifying the documents will strike off the name of company and this procedure normally takes 3-4 month. However, if any objection is received from Registrar of Companies (ROC) this process might take extra time or even reject the application.

 

 

Be Compliant With UpriseLegal

 

 

With our experienced and skilled personnel, We at UpriseLegal provides a comprehensive compliance service  at a very affordable prices.We follow law to the core and uses our knowledge to avoid any hassles in your business so that you can rise and grow! You may get in touch with our compliance manager on 9173512402 or email us at info@upriselegal.in for free consultation