Simply put, striking off a firm implies quickly ending a failed business. It is the simplest approach to shut down a business.
Which business can be fired?
– Any business, regardless of its type, can be dismissed
private company, One-person operation Section 8 company for public companies
– The Companies Act of 2013 oversees corporations, and section 248 of that Act deals with company dissolution.
What actions can be taken against a business?
– A company can be struck off in two different ways:
1) voluntarily by the company.
2) By the Companies Registrar
A corporation may ask to be struck off voluntarily if it has met the requirements listed below:
1) It has paid off all of its debts
2)It has obtained the members’ agreement through a special resolution.
3)By the Registrar of Companies upon the discovery of any of the grounds listed below:
– I a company has failed to start up its business within a year of incorporation
- The subscribers to the memorandum have not made the subscription payments they agreed to make at the time of a company’s incorporation and a company.
– The physical verification conducted when the Registrar of Companies locates the company’s registered office reveals that the company is not engaged in any business or operations.
What paperwork needs to be submitted?
– There are two forms that must be submitted when a company wants to be dissolved:
– E-form STK-2
– E-form MGT-14
Restrictions for Applying for a Strike Off
Companies are prohibited from submitting strike-off applications if, at any point during the previous three months, they have:
renamed itself or moved the location of its registered office to a different state.
made a disposition for the value of the assets or rights it had (subject to conditions).
any activity other than what is required or practical to submit an application under the relevant regulation, and so forth.
filed a request with the Tribunal asking for the approval of a compromise or an arrangement, but no agreement has yet been reached on the matter.
been voluntarily wound up under Chapter XX, by the Tribunal, or by the Insolvency and Bankruptcy Code (IBC), as of 2016.
Businesses that are ineligible for strike off include:
The following situations will not qualify a firm for striking off under the Companies Law:
The company was formed after November 2nd, 2018, however no 20A has been submitted.
It hasn’t been a full year since incorporation.
For an active business that has conducted transactions over the previous two years.
DIN has been disabled.
Every director is ineligible.
The ROC has already notified the corporation of the strike off.
Any pending legal actions are ongoing.