Sometimes we register a company for a business idea that we wanted to implement, and for whatever reason it doesn't work, we don't even start work. There are also times where we register a company for a future project and often such companies are not actually operational.
Or when your private limited company business is not working properly or is facing persistent losses, it is best to close the private limited company and search for a new start. A private limited company can be suspended or wound down if there are no exchanges or if the owners of the company are not able to carry out their activities. Both The Process needs the professional assistance and Signing by any professional.
A company may submit an application to the Registrar of Companies in E-Form STK-2 upon discharge of its liabilities. That may be achieved by passing a special resolution, which must be approved by 75% of its members.
The company may submit an application to the Registrar of Companies for revocation of the name by filing STK-2 along with a fee of Rs 10000/-.
Once the application has been filed, the Registrar shall have the power and responsibility to satisfy him that all sums owed by the company for the discharge of its responsibilities and obligations have been fulfilled.
DOCUMENTS REQUIRED FOR CLOSURE OF COMPANY
Rest Documents will be prepared by Ezzus
The Compliance of law is itself a big advantage. The Filing of proper Closure application has both monetary & non monetary benefits:
Closure of Company is generally a time taken process, like it almost take 2-3 months for getting the name removal from register of companies.
Form Filing Time;
After Form Filing:
Ezzus India India
Fast track Exit mode (Closure of RoC) Drafting of Documents +Filing of STk-2 Form + Gov. Fees - Rs. 10000 Included
Ezzus India India
Preparation of all Affidavits & Declarations +Statement of Accounts by CA+ KYC of Directors+ Filing of Form STK-2 + Gov. Fees of Rs 10,000.
Ezzus India India
Preparation of all Affidavits & Declarations +Statement of Accounts by CA+ KYC of 2 Directors+ DSC of 2 Directors + Annual Filing for one year + Filing of Form STK-2 + Gov. Fees of Rs 10,000.
1.What does strike off of a company mean?
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
2. What are the Modes of Strike Off of a company by ROC?
There are two modes of Strike off:
For reasons that the company has failed to commence its business within one year or had not been doing business or operation for last two financial years.
The Company can file an application voluntarily with the Registrar of Companies for Striking off the name of the Company. The grounds for voluntarily making such an explanation by the company remains the same as is mentioned in the 1st mode, i.e. the company has failed to commence business or had not done any business for last two financial years.
3. Which Companies can apply for voluntary striking off its name
Following companies can apply for Strike of their name from records
4. Which Companies allowed to file STK-2 but still cannot file STK-2 for voluntary strike-off?
Following Companies are restricted on filing applications for strike-off, if at any time during the last three months, it has:
5. Which Type of Companies cannot file Strike off Application
The following companies can not apply for Strike of Company by filing STK-2:
6. Is it necessary to file ROC Returns and the ITR of the Company before its winding up?
7. What is the Process Of Closing a Company under STK-2:-
Step 1: Holding of Board Meeting- A resolution for the purpose of this provision must be passed by a company through a Board of Directors, in which each of its directors would be appointed to make an application to the Registrar of Companies (ROC) for a strike.
Step 2: Closing of liabilities- A company desirous of a strike off must have realized all its assets & closed or paid off all its liabilities.
Step 3: Holding of General Meeting- The company will hold a general meeting of shareholders by passing a resolution to delete the name of the company. This resolution must be approved by 75% of its members as part of the company's paid-up share capital. At this point, the Company will have to file an E-form MGT-14 within a period of thirty days.
Step 4: Furnishing of Applications and documents- Companies on the pursuit of strike-off must file an application to the Registrar of Companies (ROC), accompanied by the following documents:
Step 5: Implications of dissolvement.- As soon as the name of the company is removed from Register, from the date mentioned in the notice under sub-section (5) of section 248 cease to operate as a company and the Certificate of Incorporation issued to it shall be deemed to have been canceled from such date except for the purpose of realizing the amount due to the company and for the payment or discharge of the liabilities or obligations of the company
8. How long does it take to Strike off of a company?
It usually takes at least 3 months for a company to be officially dissolved, but the length of time may vary considerably if the process is complex. Generally, however, a company will cease to exist no less than 3 months after the notice of termination is published in the Gazette.
9. What happens after the registrar strikes off the name of the Company?
10. What can be done in case the company director has been disqualified?
The disqualification of the director makes him ineligible even for a second to hold the office of director. Each company must operate with at least two directors at all times. In the event that the disqualification of any director sets the statutory limit of two directors, the ideal way is to call an EGM and appoint a new director instead of a disqualified director. The Companies Act provides a six-month period for the company to fill the vacancy created by the directorate. Once the board of directors has been regularized, the company can close itself in the usual way.
11. Can a struck off company can do business or activity?
When a company is struck off, the name would be removed from the company register and it can not do any business, trade, sell its assets or make payments or even it can not get involved in any other business activities. Even The name of the company will also be not the property of the Promoters.
12. How do i revive or restore a stroked off Company?
Step by Step procedure for Revival of Company:
13. What will happen, if there is pending prosecution against the company and its directors?
If the pending prosecutions are only for non-filing of Annual Returns under section 159 and Balance Sheet under section 220 of the Act, such application may be accepted provided the applicants have already filed the compounding application. However, steps for final strike of the name of the company will be taken only after disposal of compounding application by the competent authority
14. What I can do if another director/shareholders are not cooperating or not found?
A company may be closed by a majority decision of 75% of the company's shareholding. If the dissident has a stake of more than 25%, the company cannot be closed by filing the STK-2 method, which is also referred to as the voluntary method of winding up the company. In order to close a company with dissident members, an applic