After MCA notified the procedure for Physical Verification of the Registered Office of a Company, the MCA has come up with a new notification. This new notification has a direct impact on Company Strike Off Rules. You can also observe this as a new amendment or an update to how company strike off rules operate. This article will discuss and inform you all about the new MCA Update regarding company strike off rules.
What is Company Strike Off?
The term “Company strike off” refers to the process by which the Company’s name is removed from the Registrar of Companies’ official register of companies. When a company is Struck Off, it effectively ceases to exist and can no longer conduct business. Further, the business entity is unable to engage in any commercial activity, including the sale of assets, the making of payments, or any other financial transactions. The company’s name will be made accessible for other enterprises to utilize.
What is the Physical Verification Process of a Company’s Registered Address?
Companies Act, 2013 allows a RoC to visit a company’s registered office if they have reasonable suspicion that the firm is not operating lawfully. The Act now provides the procedure for such physical verifications.
Government officials in India have revised regulations so that independent witnesses can attest to the accuracy of a company’s registered office’s address during a physical verification. The new regulations detail how to conduct a physical verification in a way that eliminates the need for authorities to use their own discretion.
You can read the complete process at: MCA notifies Procedure for Physical Verification of Registered Office of a Company
Amendment of Form No. STK-1 -Company Strike Off Form
The MCA has updated the Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016. As per the notification. As per the notification, the Government stated that “In the Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016, – (a) in Form No. STK-1, in paragraph (1), for the brackets and words “(tick whichever is applicable)”, the following shall be substituted, namely:-
- “the company is not carrying on any business or operations, as revealed after the physical verification carried out under sub-section (9) of section 12. (tick whichever is applicable)”;
- in Form STK-5, in paragraph 1, after subparagraph
- and before the long line, the following shall be inserted, namely:- “(iv) the following companies are not carrying on any business or operations, as revealed after the physical verification carried out under sub-section (9) of section 12.”
Further, in Form No. STK-5A, in paragraph 1, for the brackets and words “[Strike off whichever is not applicable]”, the following shall be substituted, namely:- “(iv) are not carrying on any business or operations, as revealed after the physical verification carried out under sub-section (9) of section 12.
Thus, RoC can now strike off companies if the Registered Office Address is not in operation or can not receive correspondence and notices. However, the RoC will provide 30 days of time frame from the date of the notice for directors to respond. For further understanding of the strike off procedures, or to apply for a voluntary company strike off, you can contact our CAs and CS at: 8881-069-069 or write to us at: [email protected]
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