Wind Up your business legally without any hassle with E-StartupIndia. Get rid of the recurring annual compliances. Get your all queries resolved and strike off the company from the Register of Companies in India smoothly at the most affordable costs.
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Business Owners who started their business and incorporate the company however, later on, business not work upon. Then, business owner can’t get rid off by just doing shutter down of the office or shop but he must need to apply for Company Strike Off when they no longer want to continue the business. The Strike Off Company simply means that your company will be removed from the registrar of the company. Hence, business owner not need to do company annual compliances anymore. Section 248 of The Companies Act 2013 states about the provisions of Strike off of company.
#1. By the Company Voluntarily
As a business owner, if you want to close your business after having Private Limited Company Registration, you need to apply for Company Strike Off Voluntarily. Strike Off Company Procedure Voluntarily involves a major step of filing an application form to the ROC and Tax authorities. Also, you need to get shareholder’s approval before filing an application for Company Strike Off.
#2. By Registrar of Companies.
Registrar of Companies can also strike off company if they have reasonable cause such as:
Time Limit for Existance of Company
You can apply for company strike off under FTE only if the incorporated company has completed at least one year. In other words, you cannot apply for Company Strike Off before one year of company incorporation.
No Business / Revenue
Companies must not have any business transactions in the previous 1-2 years or there should not be any revenue from business operations.
Company needs to complete all the compliances related to strike off company procedure to be eligible for company strike off. Some essential compliances that need to be done are furnishing Form AOC 4 (Financial Statement) and Form MGT 7 (Annual Return). For complete compliance details, it’s best to consult a CA online.
The Company Strike Off Procedure in India involves the following below steps.
Conduct Board Meeting
A company's Board of Directors must have to hold a meeting for any major enactments of the company. Thus, for a company strike off the board of directors need to hold a meeting where following transactions need to be approved by all the directors:
# Approval for Strike Off Company
# Authorization from the Director to apply an application form of Company Strike Off to ROC
# Issuing a notice for holding a General Meeting
Closure of the Liabilities
If a company wants to go out of business, it needs to have all of its liabilities paid off. Once a board resolution has been passed, if any liabilities remain, the corporation will discharge them. The Creditor Account should be null and the closure account needs to be signed by a practising CA.
Held a General Meeting
The company shall conduct a general meeting of shareholders and enact a resolution to remove the Company's name from the registrar of companies. According to the paid-up share capital of the company, company strike off resolution requires the minimum support of 75% of the shareholders .
Furnishing of Documents and Forms
Following the steps above, the Company would be required to file E-form MGT-14 in less than thirty days. Also, you need to submit necessary documents, FTE Form and E- form STK-2 with ROC to strike off the company. Furthermore, the company needs to have a CTC of Special Resolution and obtain NOC from different government departments in order to strike off the company.
# If the registered office is shifted within the previous three months.
# Company name was changed within the previous three months.
# In the usual course of trading or other company, has made a value-added disposal of property or rights owned by it immediately before to the cessation of trade or other business.
# Company has participated in any action other than that which is necessary or expedient for the purposes of filing an application under that section, considering whether to do so, ending the company's affairs, or complying with any legislative requirement
# The Tribunal has been asked to sanction a Compromise Or Agreement, but no decision has yet been made.
# Company is being wound up under Chapter XX, whether voluntarily or by the Tribunal or under the IBC,2016.
# Any Government liability is outstanding such as Income Tax and GST.
# All the directors are not willing to strike off the company or any of the DIR is absconding.
# 75% Shareholders not given the consent of company strike off
Timeline for Company Strike Off depends on a number of factors. Hence, it’s best to consult our experts to understand the complete timeline for company strike off in your case.
#1. Form STK3 and Indemnity Bond Duly Notarized by all the directors
#2. Certified statement comprising all assets and liabilities of the companies signed by a CA.
#3. Affidavit and CTC of Special Resolution duly signed by each and every director of the Company.
#4. NOC from Different Departments such as Income Tax / GST / ESI / PF.
#5. Statements relating to pending litigations concerned with the company.
#6. PAN Card and Digital Signature Certificate Tokens
Company Strike Off Certificate is the legal proof that you have completed strike off company procedure legally and your company has now closed its operations. Company Strike Off Certificate is an important document that will be issued by the Jurisdictional Registrar of Companies.
Each active company required to do every year, ROC compliance, statutory audit, conduct quarterly board meetings, 1 Shareholder Geeneral Meeting, Appointment of Auditor, Filing of Income Tax Return and many more…. . Doing continous non-compliance of the same may result in default company as well its director. If business owners failed to do company strike off then, the company, the directors, manager or other officers having powers of management might be held liable for penalties and punishments in case of avoidance of compliances and other obligations.
Furthermore, such default director can not become director in other company or start a new company as a fresh.
Hence, The company strike off procedure is mandatory to discontinue business.
By reviewing the company's business activities and determining its eligibility for a company strike-off under the Companies Act, 2013 & Fast Track System we will be able to make the Company Strike Off process easier for you.
Our professional experts will prepare an application and get all the necessary paperwork done for the applicant and then file it for closure of the Company to the ROC. After successful approval of the application for Company Strike Off,, we will deliver your Company Strike Off Certificate to your Email.
It is illegal for a company to trade after the company strikes off from ROC. As soon as a business is struck off the register, it loses its ability to transact, to sell its assets or to make payments. It also loses the ability to engage in any other commercial operations whatsoever. New businesses would be permitted to use the company's name without restriction.
You can apply for Company Strike Off only if all the directors are willing to strike off. If another DIR is not willing to strike off, the company is not eligible for strike off company procedure.
There is a twenty-year window of opportunity after the notice of the ROC's intention to strike out the company's name was published in the official gazette for anybody who believes they have been wronged to file a claim for redress.
One year after incorporation, even without an annual filing required by an active DIN and with no commercial activity for that time period, a strike can be carried out.
Yes, We do. As an online platform serving the whole of India, E-StartupIndia may be accessed from a mobile or desktop, no matter where in the country you are conducting business.
No, you need not to be physically present for Company Strike Off Procedure. You can communicate with our experts over call, email and chat and share your documents securely online on our web portal or email.
Get in touch with our experts through a call at- 8881-069-069 or Email us at [email protected]. Our experts will be more than happy to assist you and resolve all your queries.
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