Its a certificate of incorporation is issued by the Registrar of Companies which acknowledges the existence of the Company
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.
Strike of 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.
It usually takes at least 3 months for a company to be officially dissolved, but the length of time can vary considerably if the process is complex. However, a company will cease to exist in not less than 3 months from the winding-up notice being advertised in the Gazette. However some companies may apply under fast track exit mode for Striking Off its name.
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:
1. The company is incorporated after 2nd November, 2018, but it has not filed 20A.
2. One year is not completed since incorporation.
3. For ongoing company i.e having business transactions in last 1-2 years.
4. DIN are deactivated.
5. Any director is disqualified.
6. Company has already received notice from ROC of strike off.
7. Any ongoing litigation are pending.
1. Strike off is a very quick procedure for the closure of the company.
2. The unnecessary burden of compliance can be avoided.
3. Rather than complying with various norms such as filing, audit, returns etc, it is advisable to wind up a company that is dormant or non-active company.
4. This saves compliance costs for a company that is not in action every year.
5. A company that doesn’t file its compliance on time incurs fines and penalty including debarment of the Directors from starting another Company. So it is advisable to legally wind up a dormant company and avoid fines in the future.
1. Consent of the Creditors of the company
2. Indemnity Bond duly notarized by all directors (in Form STK 3)
3. A certified statement of liabilities by a Chartered Accountant comprising of all assets and liabilities of the companies
4. An affidavit by all directors of the company in Form STK 4
5. CTC of Special Resolution duly signed by every director of the company
6. Digital Signature of the Directors
7. PAN and Aadhaar card of directors
8. Consent Letter and Affidavit of its Director
9. A statement concerning any pending litigation with respect to the company
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