Strike off Company

Time to move on, we will help you close your company

Close your Private Limited Company and stop complying with routine compliances. Prices start at INR 17,999/- only.

H & G Ebiz Private Limited

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Strike off Company

Overview

Liquidation is the process initiated by a company to close its operations. The company may decide to wind up due to various reasons such as unwillingness to continue with the operations, insolvency and so on. As the term suggests, liquidation of a company refers to liquidating the assets of the company. By initiating the liquidation process, the company may sell its assets to meet obligations and repay liabilities.

If a company is liquidated due to bankruptcy, the liquidator can sell its assets to repay all pending liabilities. The remaining balance, if any, after repayment to the creditors, gets distributed among the shareholders of the company.

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:

The company is incorporated after 2nd November, 2018, but it has not filed 20A.

One year is not completed since incorporation.

For ongoing company i.e. having business transactions in last 1-2 years.

DIN are deactivated.

Any director is disqualified.

Company has already received notice from ROC of strike off.

Any ongoing litigation are pending.

Benefit of Strike off Company:

Free from debts after Strike off:
Once the liquidation process is over, the directors and all company officials are free from all creditor liabilities and pressure.

Avoiding legal action against the company:
If the resolution is passed voluntarily by directors, they will neglect legal action taken by the court or the tribunal, and provide a platform to company directors to concentrate on other business opportunities.

Low cost Compare to Sell the Assets:
The cost or expenses involved in the liquidation process is relatively low, as charges will be applicable on the sale of assets.

All lease agreements will be cancelled:
If any company or entity has entered into a lease for a prescribed time, during the liquidation process, it will terminate all the terms and conditions of the lease. If any penalty has to be paid, it will be deducted from the sale of assets.

Advantages for creditors: After a prolonged struggle, creditors will benefit from the liquidation process as they will be eligible for a default payment, with respect to the proposition of credits given by all creditors.

The process of removing an incorporated or registered company from the list of companies maintained by state registrar can be conducted smoothly with H & G Ebiz Pvt. Ltd team just by sharing your company name. Application for the strike off can be made by the Company who is actively working and also by a dormant company.

Company Strike off procedure is an online process. You can also check the Company strike off list in India from MCA records. An application for removal of name of the company / Strike Off Company shall be made in Form STK-2 along with the prescribed fees.

The winding-up of the company can be executed in two different ways

Compulsory winding up: The compulsory winding up of a company can be executed by the order of a tribunal or a court, bypassing a special resolution made by the directors during the company’s board meeting, which proposes a court intervention. Identically, by filing a petition to a court or a tribunal by any official person of the company, if the company has indulged in any fraudulent/unlawful activities, it can be winded up compulsorily.

Voluntarily winding up: The Company requires a resolution from the directors, to sell off all assets of the company or to transfer the stakes to another entity.

Documents required for the closure of the company

Consent of the Creditors of the company

Indemnity Bond duly notarized by all directors (in Form STK 3)

A certified statement of liabilities by a Chartered Accountant comprising of all assets and liabilities of the companies

An affidavit by all directors of the company in Form STK 4

CTC of Special Resolution duly signed by every director of the company

Digital Signature of the Directors

PAN and Aadhaar card of directors

Consent Letter and Affidavit of its Director

A statement concerning any pending litigation with respect to the company

Strike Off Company Packages

Standard

17,999/-

Wind up a company with no transactions since incorporation

Buy

regular

20,299/-

Wind up a company with no transactions since incorporation

2 Directors' DIR 3 KYC

Form 20A Filing for capital upto INR 1 Lakh

Buy

advance

23,999/-

Wind up a company with no transactions since incorporation

2 Directors' DIR 3 KYC

Form 20A Filing for capital upto INR 1 Lakh

2 DSC Application Class III Individual 2 Year Validity

GST Cancellation

Buy

Process to Strike off Company in India

Convene a board meeting with the Directors in which a resolution should be passed with a declaration by the directors that they have made an enquiry in the affairs of the Company and the company no debts or the Company will pay from the proceeds of the assets sold in the voluntary wind up of the company.

Notices should be issued in writing to call for the general meeting of the Company proposing the resolutions, with a suitable explanatory statement.

Pass the ordinary resolution for winding up of the Company in the generally meeting by ordinary majority or special resolution by 3/4 majority. The Winding up of the Company shall commence from the date of passing the resolution.

A meeting of the creditors should be conducted on the same day or the next day of passing the resolution regarding winding up. If the 2/3rd value of the creditors are of the opinion that it is in interest of all parties to windup the Company, the Company can wound up voluntarily.

Within 10 days of passing the resolution for company winding up, a notice for appointment of liquidator must be filed with the registrar.

Within 30 days of the general meeting for the winding up the certified copies of the ordinary or special resolution passed in the general meeting for the winding up of the Company.

The affairs of the company need to be wind up and prepare the liquidators account of the Winding up account and to get it audited.

Call for the final General meeting of the Company.

A special resolution should be passed for the disposal of the books and the papers of the company when the affairs of the company are completely wound up and it is about to be dissolved.

Within two weeks of the general meeting of the Company, file a copy of the accounts and file and the application to the tribunal for passing an order for the dissolution of the company.

The tribunal shall pass an order dissolving the company within 60 days of receiving the application.

The company liquidator is required to file a copy of the order with the registrar.

The registrar will then on receiving the copy of the order passed by the Tribunal then publish a notice in the official gazette that the Company is dissolved.

Is to file a petition to the tribunal along with the statement of the affairs of the Company that is to wind up.

The tribunal will either accept or reject the petition if the person other than company files a petition then the tribunal may ask the company to file objection. It goes along with the statement of affairs within 30 days.

Liquidator needs to be appointed by the tribunal for the winding up process. The liquidator carries out the function of assisting and monitoring the liquidation proceedings.

Liquidator is supposed to prepare a draft report for approval. When the draft report gets approved he shall submit the final report to the tribunal for passing the winding up order.

It is necessary of the liquidator to forward a copy to the ROC within 30 days, if he fails to do so then he will get a penalty.

If the ROC finds the draft satisfactory he then approves the winding up of the Company and the name of the Company is strike from the register of Companies.

ROC sends notice for Publication in the official gazette of India

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