As a business owner in India, there may come a time when you need to dissolve your company. The process of striking off a company from the Registrar of Companies (ROC) can be a complex and confusing one, especially if you are not familiar with the legal requirements and procedures. This FAQ guide is designed to help you navigate the process of strike off company in India.
What does strike off company mean?
Strike off company refers to the process of removing the name of a company from the ROC. It is a way of dissolving a company in India, and once the company is struck off, it ceases to exist as a legal entity.
What are the reasons for strike off company?
There are several reasons why a company may choose to strike off, including:
a. If the company has been inactive for a period of more than one year and has not filed its annual returns and financial statements with the ROC.
b. If the company is unable to carry on its business due to financial difficulties.
c. If the directors of the company decide to close down the company.
What is the procedure for strike off company in India?
The procedure for strike off company in India involves the following steps:
a. Hold a board meeting and pass a resolution for strike off.
b. File the necessary documents with the ROC, including Form STK-2, Statement of Accounts, and Annual Returns.
c. Advertise the strike off notice in a leading newspaper.
d. Wait for a period of three months from the date of publication of the notice.
e. Once the three-month waiting period is over, the ROC will strike off the company from its records.
What are the consequences of not striking off a company?
If a company fails to strike off from the ROC, it may face the following consequences:
a. The directors of the company may face legal action.
b. The company may continue to be liable for filing annual returns and financial statements.
c. The company may be blacklisted by the ROC, making it difficult to start a new business in the future.
Can a company be restored after it has been struck off?
Yes, a company can be restored after it has been struck off from the ROC. The restoration process involves filing an application with the National Company Law Tribunal (NCLT), along with the necessary documents and fees.
How long does it take to strike off a company in India?
The time taken to strike off a company in India varies depending on various factors, such as the completeness of the documents submitted, the response time of the ROC, and any objections raised by the public.
Can a strike off company sell its assets?
A strike off company cannot sell its assets, as it ceases to exist as a legal entity. However, the assets of the company can be sold by the directors or liquidator before the company is struck off.
What is the difference between strike off and winding up of a company?
Strike off refers to the process of removing the name of a company from the ROC, while winding up is the process of dissolving a company through a legal procedure. The winding up process can be initiated voluntarily or through a court order, and it involves the appointment of a liquidator to sell off the assets of the company and distribute the proceeds among the creditors and shareholders.
Can a company be struck off if it has pending litigation?
No, a company cannot be struck off if it has pending litigation, as it is a legal entity and must defend itself in court. The company must resolve all pending litigation before it can be struck off from the ROC.
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