Striking Off Name Of The Company

STRIKING OFF IS THE FAST AND EASY WAY OF SHUTTING AN ORGANIZATION WHICH IS NOT CARRYING ANY BUSINESS OR NOT MAKING ANY PROFIT.

The striking off can be done in two ways:

• By Registrar of Companies
• By Company itself

Exception: Section 8 Company cannot get itself strike off, voluntarily.

1. By Registrar of Companies

The registrar may strike off the name of the Company by sending notice to the Company and all its directors, if:

The Company has failed to commence its business within one year of incorporation.
The subscribers to the memorandum have not paid the subscription which they had undertaken to pay at the time of incorporation of a company.

The company is not carrying on any business or operation for a period of two immediately preceding financial years and has not made any application within such period for obtaining the status of a dormant company

2. By Company itself

The Company shall with the approval of the shareholders, file an application with the Registrar of Companies for striking off its name on the basis of the following grounds:

The Company has failed to commence its business within one year of incorporation.
The subscribers to the memorandum have not paid the subscription which they had undertaken to pay at the time of incorporation of a company.
The company is not carrying on any business or operation for a period of two immediately preceding financial years and has not made any application within such period for obtaining the status of a dormant company

Procedure for striking off the name of the Company:

1. The Company shall conduct the Board Meeting:
   1. to strike off the name of the proposed Company
   2. to close the account of the Company
   3. Convening of Extra-Ordinary General Meeting
2. Preparation of statement of accounts.
3. The Company shall convene Extra-Ordinary General Meeting.
4. On receipt of the approval of members in Extra-Ordinary General Meeting form MGT-14 shall be filed.
5. Filing of application for striking off with the Registrar of Companies (ROC) in Form STK-2 with the following attachments:
   1. Covering Letter
   2. Indemnity Bond to be given by all the Directors in the Form STK-3
   3. Affidavit to be given by all the Directors in the Form STK-4
   4. Certified True Copy of resolutions passed in the Extra Ordinary General Meeting
   5. Statement of accounts not before 30 days of filing this application
   6. Copy of Board Resolution authorizing the Directors for filing the application of striking off with the ROC
   7. Statement regarding pending litigation, if any

   The STK-3 and STK-4 are to be executed on the stamp paper and also, be notarized. If any foreigner is executing the document then it is required to be notarized and apostilled.

6. The Registrar of Companies (ROC) will give public notice and intimate the regulatory authorities regulating the Company like Income Tax department, Service Tax, Central Board of Excise and Customs etc. for seeking objections from the stakeholder.
7. If no objections are received from the stakeholder within 30 days, then ROC will strike off the name of the Company from the Register of Companies.

Taxcellent will help in filing documents and applications with the Registrar of Companies for striking off the name of the Company.