Do You Know The Procedure of Strike off of Name of a Company?

Strike off means removal of name of a company from register of Companies. Strike-off may be done by the Company itself or on the order of the Registrar of Companies (ROC). The procedure for strike off the name of the company from the Register of Companies is mentioned below.

1. STRIKE OFF BY THE ROC

The ROC may initiate the procedure to strike off the name of the Company from the Register of Companies on any of the following grounds:

If the company has not commenced business within 1 year from the date of Incorporation.

If the company is not carrying on any business or operation from last 2 Financial Years. Also, the company has not obtained the status of Dormant Company by making an application.

The subscribers of the Memorandum have not paid subscription money. Also, it has not filed the Declaration in the Form INC-20A within 180 days from the date of Incorporation.

It is found after physical verification that the company is not carrying any business or operations.

The notice sent by the ROC should ask the following:

Company and the Directors to send their representations within 30 days from the issuance of Notice.

2. STRIKE OFF BY THE COMPANY

The company may apply to the ROC for striking off the name of the Company from the Register of Companies on all or any of the following grounds:

If the company has not commenced business within 1 year from the date of Incorporation.

If the company is not carrying on any business or operation from last 2 Financial Years. Also, it has not obtained the status of Dormant Company by making an application.

The subscribers of the Memorandum have not paid subscription money. Also, it has not filed the Declaration in the Form INC-20A within 180 days from the date of Incorporation.

The company is not carrying any business or operations.

3. THE PROCEDURE OF STRIKE OFF OF THE NAME OF COMPANY

Conduct Board Meeting and issue Notice of EGM.

Conduct EGM and obtain consent of members either by a Special Resolution or by consent of members holding 75% of the paid-up share capital.

File MGT-14 within 30 days from the date of passing the Special Resolution. Attachments: Copy of BR, Copy of SR, Notice of EGM.

File Form STK-2 within 30 days from the date of passing the Special Resolution.

Attachments:

Copy of BR, Copy of SR, Indemnity Bond in STK-3, Affidavit in STK-4 and

Statement of Assets & Liabilities in STK-8 as on date not more than 30 days before making application.

Public Notice in Form STK-5 (For Companies Struck off by ROC)

It is published on the Official website of the MCA, in Official Gazette and in English Newspaper and in Vernacular Language Newspaper.

Public Notice in Form STK-6 (For Companies Struck off on application made by the Company to ROC).

It is published on the Official website of the MCA, in Official Gazette and in English Newspaper and in Vernacular Language Newspaper.

Note:

The Company registered under section-8 of the Companies Act, 2013 is not allowed to make an application for strike off.

After the name of the company has been struck off, the liability, if any, of every director, manager or other officer who was exercising any power of management, and of every member of the company is continued.

Even after the date of the order removing the name of the company from the register of companies, the assets of the company should be made available for the payment or discharge of all its liabilities and obligations.

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