STRIKE OFF OF COMPANY

STRIKE OFF OF COMPANY

When the Company is not operative for long or do not have any intentions to carry any business in future, the directors can opt for voluntarily strike off of the Company.

Strike off of the Company can be voluntarily or by ROC.

If the Company is not filing of necessary Annual Returns with ROC for a continual period of 3 or more years, the ROC will first send notice to enquire about the same, given a period of 30 days to reply and make the compliance good if the directors want to carry the business. However if no reply is received the ROC will proceed to strike off the name of Company from REGISTER OF COMPANIES.

If the Directors are unwilling to carry any business in future, they can also opt for voluntarily strike off of the Company after paying of all the necessary liabilities and closing the bank account of Company.

Which company can get strike off? 

Any company can get strike off whether it’s a

• Private company
• One-person company
• Public company 

What section governs Striking of company name from the register of companies?

• The companies are governed by the Companies Act, 2013 and its section 248 governs the striking off of company. 

Documents required for Voluntary Strike off of Company:

• Indemnity Bond duly notarized by all directors (in Form STK 3).
• A statement of liabilities comprising of all assets and liabilities of the companies (certified by a Chartered Accountant).
• Certified true copy of Special Resolution (duly signed by every director of the company).
• Copy of Board resolution authorizing the filing of this application.
• Indemnity bonds in Form No. STK-3
• An affidavit in Form STK-4
• A statement concerning any pending litigations with respect to the company.
• Copy of relevant order of delisting, if any, from the concerned stock exchange.
• No objection certificate from relevant regulatory department in case company is governed by such department. 

How long does it take to strike off the 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 he may even reject the application

Procedure to strike off of company? 

If, ROC is satisfied that it is just and equitable to strike off company, after giving Public notice and sending notice to company and its directors and if no response is received within the time period stated in notice, ROC will proceed to strike off of the company.